TD Bank 2009 Annual Report Download - page 47

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 MANAGEMENT’S DISCUSSION AND ANALYSIS 43
(millions of Canadian dollars, except as noted) 2009 2008 2007
Net interest income $ 2,488 $ 1,318 $ 875
Non-interest income (loss) 733 (68) 1,619
Provision for credit losses 164 106 48
Non-interest expenses 1,417 1,199 1,261
Income (loss) before provision for income taxes 1,640 (55) 1,185
Provision for (recovery of) income taxes 503 (120) 361
Net income – reported $ 1,137 $ 65 $ 824
Selected volumes and ratios
Risk-weighted assets (billions of Canadian dollars) $34 $ 56 $ 44
Return on invested capital 30.0% 1.8% 30.1%
Efficiency ratio – reported 44.0 95.9 50.6
WHOLESALE BANKING
TABLE 19
BUSINESS OUTLOOK AND FOCUS FOR 2010
Overall, we expect a less favourable operating environment
for Wholesale Banking in 2010. Trading revenue is expected to
moderate from record levels as competition increases in the
market and a less volatile, low interest rate environment reduces
trading opportunities. While economic conditions are expected
to improve, there is a potential for higher PCL. Our key priorities
for 2010 are as follows:
•Continue to build the franchise by broadening and deepening
corporate client relationships, growing our U.S. rates and
global FX businesses.
•Maximizing the leverage of our Bank partners.
•Continue to effectively manage capital by exiting or reducing
non-core positions.
•Continue to invest in infrastructure to enhance controls
and processes.
KEY PRODUCT GROUPS
Investment Banking and Capital Markets
•
Investment banking and capital markets revenue, which includes
advisory, underwriting, trading, facilitation, and execution services,
was $3,154 million, an increase of $2,601 million, or 470%,
compared with last year. The increase was primarily due to strong
rate, currency, and credit trading revenue, and a recovery from the
cancellation of a loan commitment. Equity and energy businesses
also performed well, and underwriting revenue was strong. Partially
offsetting these increases were lower merger and acquisition
advisory fees.
Corporate Banking
•
Corporate banking revenue which includes corporate lending,
trade finance, and cash management services was $397 million,
an increase of $27 million, or 7%, compared with last year. This
increase was due to higher margins and fees, and higher average
lending volumes.
Equity Investments
•The equity investment portfolio, composed of public and private
equity investments, reported a loss of $330 million, compared with
a gain of $327 million in the prior year. The decrease is attributable
to the strategic decision to exit the public equity investment portfo-
lio resulting in realized losses on the sale of these investments.