TD Bank 2011 Annual Report Download - page 11

TD BANK GROUP ANNUAL REPORT 2011 MANAGEMENT’S DISCUSSION AND ANALYSIS 9
believe are indicative of underlying business performance. The Bank
believes that adjusted results provide the reader with a better under-
standing of how management views the Bank’s performance. The items
of note are listed in the table on the following page. As explained,
adjusted results are different from reported results determined in accor-
dance with GAAP. Adjusted results, items of note, and related terms
used in this document are not defined terms under GAAP and, there-
fore, may not be comparable to similar terms used by other issuers.
The Bank is transitioning from Canadian GAAP to International
Financial Reporting Standards (IFRS), effective for interim and annual
periods beginning in the first quarter of fiscal 2012. Refer to Note 34
of the Consolidated Financial Statements for the Bank’s IFRS opening
Consolidated Balance Sheet as at November 1, 2010 (IFRS opening
Consolidated Balance Sheet) and related disclosures including a
summary of the Bank’s first-time adoption transition elections under
IFRS 1 and other significant differences between Canadian GAAP
and IFRS. These disclosures form the starting point for TD’s financial
reporting under IFRS and have been provided to allow users of the
financial statements to obtain a better understanding of the expected
effect on the Consolidated Financial Statements as a result of the
adoption of IFRS. The interim and annual fiscal 2012 Consolidated
Financial Statements will also include fiscal 2011 comparatives, related
transitional reconciliations, and accompanying note disclosures.
The following table provides the operating results – reported for
the Bank.
FINANCIAL RESULTS OVERVIEW
CORPORATE OVERVIEW
The Toronto-Dominion Bank and its subsidiaries are collectively known
as TD Bank Group (TD or the Bank). TD is the sixth largest bank in
North America by branches and serves approximately 20.5 million
customers in four key businesses operating in a number of locations
in key financial centres around the globe: Canadian Personal and
Commercial Banking, including TD Canada Trust, TD Insurance, and
TD Auto Finance Canada; Wealth Management, including TD Waterhouse
and an investment in TD Ameritrade; U.S. Personal and Commercial
Banking, including TD Bank, America’s Most Convenient Bank and
TD Auto Finance U.S.; and Wholesale Banking, including TD Securities.
TD also ranks among the world’s leading online financial services firms,
with more than 7.5 million online customers. TD had $686 billion in
assets on October 31, 2011. The Toronto-Dominion Bank trades under
the symbol “TD” on the Toronto and New York Stock Exchanges.
HOW THE BANK REPORTS
The Bank prepares its Consolidated Financial Statements in accordance
with GAAP and refers to results prepared in accordance with GAAP as
“reported” results. The Bank also utilizes non-GAAP financial measures
to arrive at “adjusted” results to assess each of its businesses and to
measure overall Bank performance. To arrive at adjusted results, the
Bank removes “items of note,” net of income taxes, from reported
results. The items of note relate to items which management does not
OPERATING RESULTS – REPORTED
TABLE 1
(millions of Canadian dollars) 2011 2010 2009
Net interest income $ 12,831 $ 11,543 $ 11,326
Non-interest income 8,763 8,022 6,534
Total revenue 21,594 19,565 17,860
Provision for credit losses 1,465 1,625 2,480
Non-interest expenses 13,083 12,163 12,211
Income before income taxes, non-controlling interests in subsidiaries,
and equity in net income of associated company 7,046 5,777 3,169
Provision for income taxes 1,299 1,262 241
Non-controlling interests in subsidiaries, net of income taxes 104 106 111
Equity in net income of an associated company, net of income taxes 246 235 303
Net income – reported 5,889 4,644 3,120
Preferred dividends 180 194 167
Net income available to common shareholders – reported $ 5,709 $ 4,450 $ 2,953