TD Bank 2009 Annual Report Download - page 147

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 FINANCIAL RESULTS 143
(millions of Canadian dollars) Income before
Total revenue income taxes Net income Goodwill Total assets
2009
Canada $ 12,154 $ 2,938 $ 2,256 $ 1,529 $ 329,454
United States 3,906 (1,265) (541) 13,432 177,593
Other international 1,800 1,496 1,405 54 50,172
Total $ 17,860 $ 3,169 $ 3,120 $ 15,015 $ 557,219
2008
Canada $ 10,770 $ 3,186 $ 2,486 $ 1,529 $ 352,418
United States 2,925 216 487 13,265 154,418
Other international 974 702 860 48 56,378
Total $ 14,669 $ 4,104 $ 3,833 $ 14,842 $ 563,214
2007
Canada $ 10,619 $ 2,992 $ 2,314 $ 1,529 $ 275,931
United States 2,370 648 710 6,340 79,951
Other international 1,292 1,021 973 49 66,242
Total $ 14,281 $ 4,661 $ 3,997 $ 7,918 $ 422,124
RESULTS BY GEOGRAPHY
For reporting of geographic results, segments are grouped into
Canada, United States and International. Transactions are primarily
recorded in the location responsible for recording the revenue or
assets. This location frequently corresponds with the location of the
legal entity through which the business is conducted and the location
of the customer.
TRANSACTIONS WITH OFFICERS AND DIRECTORS
AND THEIR AFFILIATES
The Bank makes loans to its officers and directors and their affiliates.
Loans to directors and officers are on market terms and conditions
unless, in the case of banking products and services for officers, other-
wise
stipulated under approved policy guidelines that govern all
employees. The amounts outstanding are as follows:
(millions of Canadian dollars) 2009 2008
Personal loans, including mortgages $9 $11
Business loans 175 110
Total $ 184 $ 121
In addition, the Bank offers deferred share and other plans to non-
employee directors, executives and certain other key employees. See
Note 24 for more details.
In the ordinary course of business, the Bank also provides various
banking services to associated and other related corporations on terms
similar to those offered to non-related parties.
TRANSACTIONS WITH EQUITY-ACCOUNTED INVESTEES
TD Ameritrade
Pursuant to a Stockholders Agreement in relation to the Bank’s equity
investment in TD Ameritrade, the Bank designated four of 11 members
of TD Ameritrade’s Board of Directors and has the ability to designate
a 12th director. A description of significant transactions of the Bank
and its affiliates with TD Ameritrade is set forth below.
Money Market Deposit Account Agreement
The Bank is party to a money market deposit account (MMDA)
agreement with TD Ameritrade, pursuant to which the Bank makes
available to clients of TD Ameritrade money market deposit accounts
as designated sweep vehicles. TD Ameritrade provides marketing and
support services with respect to the MMDA. The Bank paid fees of
$653.7 million in 2009 (2008 – $657.0 million; 2007 – $592.3 million)
to TD Ameritrade for the deposit accounts. The fee paid by the Bank
is based on the average balance of deposits during the period with a
portion of the fee tied to the actual yield earned by the Bank on the
investments, with the balance based on an agreed rate of return.
As at October 31, 2009, amounts receivable from TD Ameritrade
were $39.8 million (2008 – $225.1 million). As at October 31,
2009, amounts payable to TD Ameritrade were $73.8 million
(2008 – $115.3 million).
TRANSACTIONS WITH SYMCOR
The Bank has a one-third ownership in Symcor Inc. (Symcor), a North
American provider of business process outsourcing services for the
financial services industry, including cheque and payment processing,
statement production and document management. The Bank accounts
for Symcor’s results using the equity method of accounting. During
the year, the Bank paid $134.7 million (2008 – $164.0 million; 2007 –
$128.7 million) for these services. As at October 31, 2009, the amount
payable to Symcor was $12.3 million (2008 – $38.4 million).
RELATED-PARTY TRANSACTIONS
NOTE 35
The risk management policies and procedures of the Bank are provided
in the MD&A. The shaded sections of the Managing Risk section of the
MD&A, relating to credit, market and liquidity risks are an integral part
of the 2009 Consolidated Financial Statements.
RISK MANAGEMENT
NOTE 36