TD Bank 2006 Annual Report Download - page 11

TD BANK FINANCIAL GROUP ANNUAL REPORT 2006 To Our Shareholders
TO OUR SHAREHOLDERS
President and CEO’s
Message
We’re proud of what we accomplished in
2006. We’re proud to be one of the top
10 largest banks in North America based on
market capitalization. And we’re proud to
say we think we’re a different kind of bank.
For us, being different means being the better bank – a
leading North American financial institution with an integrated,
customer focus. Every day we want to run our bank better
than we did the previous day,and better than our competition.
2006 was another strong year for TD Bank Financial Group –
and with it, we moved that much closer to being the better
bank that we envision.
STRIVING TO BE BETTER
We’reoffering our shareholders a financial services company
which is also a growth company. We believe five key factors
make us a growth company different from the others.
•We have a balanced and actively managed risk strategy that
delivers the best returnfor each dollar of risk that we take on.
•We build strong franchise businesses, embed in each of them
the same philosophy of what to do, and focus on their
organic growth.
•We are an organization that truly revolves around the customer
–one that knows it all starts with customers, and anticipating
and meeting their needs.
•We are committed to operational excellence. Shareholder value
in financial services is created by executing better. That’s why
we’reconstantly looking at our processes and figuring out how
to do them better.
•We build for the future. Our leaders at TD are not just focused
on meeting short-term performance targets. They know they
must invest in the future at the same time.
This approach delivered strong results to our shareholders in
2006. Wesaid we weregoing to grow earnings per shareby
7to 10%. That’s exactly what we did – and more. I’m extremely
pleased to tell you that TD grew adjusted earnings per share
13% in 2006. Weincreased our overall adjusted earnings by
18% over the previous year. We were able to do this because
each of our businesses is doing what they said they would do.
DOMESTIC BUSINESSES THAT DELIVER
Our Canadian retail operations continue to be a powerhouse for
us. Our Canadian Personal and Commercial bank, coupled with
our Canadian Wealth Management business, delivered record
earnings this year. We’re a powerful player in this field and we
firmly believe in this model.
That’s why we opened 31 new retail branches in 2006,
and added hundreds more customer-facing employees. Our
customers are telling us they like what we’re doing. They have
named us #1 in overall customer service in Canada, the #1
consumer internet bank in Canada, and one of the country’s
most trusted and respected brands.
We’re also very pleased with our Wholesale Bank’s current
position. We’re quickly closing in on being a top three dealer
in Canada. We seized the number one position in equity block
trading and fixed income trading, and we’re a top three advisor
in mergers and acquisitions. We also reached a major milestone
this year, completing our exit of the global structured products
businesses. This means we now have a derivatives business that
will deliver strong rates of return with less risk.
U.S. PLATFORM POSITIONED FOR GROWTH
Growing in the United States, through TD Banknorth and
TD Ameritrade, is an important part of our future. We’re very
positive about both TD Banknorth’s and TD Ameritrade’s poten-
tial to grow organically and deliver value to our shareholders.
One of this year’s biggest challenges certainly had to be
TD Banknorth’s performance. It was not as strong as we would
have liked. The banking climate in the United States continues
to be difficult. That’s why the TD Banknorth team is focused
on organic growth opportunities – on building the better bank
versus the bigger one. It will take hard work. It will take some
time. But we have the experience, proven track recordand
strong leadership team to make it happen.
In many ways, the environment that’s been challenging
TD Banknorth has had a positive effect on TD Ameritrade,
who delivered its fourth consecutive year of record earnings
growth. In TD Ameritrade, we have one of the top three
on-line brokerage businesses in the United States and clearly
an operation with enormous potential.
As I reflect on 2006, I’m encouraged by the action we took
this year to continue building a distinct and strong presence
in the United States.
EMPLOYEES STRIVING TO MAKE A DIFFERENCE
Our success at TD comes from our 58,000 people. Every time
Imeet with employees, I’m struck by the force of their passion
for the job, their commitment to our customers, and their
pride in our organization. Wesimply have a wonderful team
of people. They make us different. They make us a better bank.
On behalf of TD’s senior management and Board of Directors,
I’d like to sincerely thank all of our TD employees around the
globe for a job exceedingly well done.
ANOTHER STRONG YEAR
In 2006 we showed we are a different kind of bank – staffed by
spirited employees and backed up by a powerful brand. We have
better growth at lower risk than our competitors, we’ve proven
ourselves as an earnings growth leader, and we have a strong
base on which to grow our U.S. platform.
Next year we’ll remain steadfast in our commitment to make
TD stronger for our successors than the TD we inherited. With all
that we achieved in 2006 I have no doubt we strengthened this
great institution for our shareholders, our customers, and our
employees – both today and for the future.
W.Edmund Clark
President and Chief Executive Officer
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