TD Bank 2009 Annual Report Download - page 31

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 MANAGEMENT’S DISCUSSION AND ANALYSIS 27
(millions of Canadian dollars) 2009 2008
For the three months ended For the three months ended
Oct. 31 July 311Apr. 301Jan. 311Oct. 31 July 31 Apr. 30 Jan. 31
Net interest income $ 2,825 $ 2,833 $ 2,940 $ 2,728 $ 2,449 $ 2,437 $ 1,858 $ 1,788
Non-interest income 1,893 1,834 1,385 1,422 1,191 1,600 1,530 1,816
Total revenue 4,718 4,667 4,325 4,150 3,640 4,037 3,388 3,604
Provision for credit losses 521 557 772 630 288 288 232 255
Non-interest expenses 3,095 3,045 3,051 3,020 2,367 2,701 2,206 2,228
Provision for (recovery of) income taxes 132 209 (8) (92) 20 122 160 235
Non-controlling interests in subsidiaries, net of income taxes 27 28 28 28 18898
Equity in net income of an associated company, net of income taxes 67 84 63 89 67 79 71 92
Net income – reported 1,010 912 545 653 1,014 997 852 970
Adjustments for items of note, net of income taxes
Amortization of intangibles 116 122 127 127 126 111 92 75
Reversal of Enron litigation reserve ––––(323) – – –
Decrease (increase) in fair value of derivatives hedging the reclassified
available-for-sale debt securities portfolio 73 43 134 200 (118) – – –
Restructuring and integration charges relating
to the Commerce acquisition 89 70 50 67 25 15 30 –
Decrease (increase) in fair value of credit default swaps hedging the
corporate loan book, net of provision for credit losses 19 75 44 (12) (59) (22) (1) (25)
Other tax items ––––– 14 – 20
Provision for insurance claims ––––––– 20
General allowance increase in Canadian Personal
and Commercial Banking (excluding VFC) and Wholesale Banking –467755 ––––
Settlement of TD Banknorth shareholder litigation ––39–––––
FDIC special assessment charge –35 – – ––––
Total adjustments for items of note 297 391 471 437 (349) 118 121 90
Net income – adjusted 1,307 1,303 1,016 1,090 665 1,115 973 1,060
Preferred dividends 48 49 41 29 23 17 11 8
Net income available to common shareholders – adjusted $ 1,259 $ 1,254 $ 975 $ 1,061 $ 642 $ 1,098 $ 962 $ 1,052
(Canadian dollars, except as noted)
Basic earnings per share
Reported $ 1.12 $ 1.01 $ 0.59 $ 0.75 $ 1.23 $ 1.22 $ 1.12 $ 1.34
Adjusted 1.47 1.47 1.15 1.28 0.79 1.37 1.33 1.46
Diluted earnings per share
Reported 1.12 1.01 0.59 0.75 1.22 1.21 1.12 1.33
Adjusted 1.46 1.47 1.14 1.27 0.79 1.35 1.32 1.45
Return on common shareholders’ equity 11.0% 9.7% 5.6% 7.2% 13.3% 13.4% 13.4% 18.0%
(billions of Canadian dollars)
Average earning assets $ 451 $ 438 $ 447 $ 449 $ 416 $ 410 $ 359 $ 354
Net interest margin as a percentage of average earning assets 2.48% 2.57% 2.70% 2.41% 2.34% 2.36% 2.11% 2.01%
QUARTERLY RESULTS
TABLE 12
1During the fourth quarter of 2009 certain comparative amounts retroactive to
the first quarter of 2009 have been adjusted to conform with the amendments
to CICA Handbook Section 3855. For further details, see the “Changes in
Accounting Policies during the Current Year” section.