TD Bank 2011 Annual Report Download - page 21

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TD BANK GROUP ANNUAL REPORT 2011 MANAGEMENT’S DISCUSSION AND ANALYSIS 19
(millions of Canadian dollars) For the three months ended
2011 2010
Oct. 31 July 31 Apr. 30 Jan. 31 Oct. 31 July 31 Apr. 30 Jan. 31
Net interest income $ 3,284 $ 3,303 $ 3,079 $ 3,165 $ 2,983 $ 2,921 $ 2,790 $ 2,849
Non-interest income 2,381 2,044 2,043 2,295 2,034 1,823 1,977 2,188
Total revenue 5,665 5,347 5,122 5,460 5,017 4,744 4,767 5,037
Provision for credit losses 334 374 343 414 404 339 365 517
Non-interest expenses 3,482 3,207 3,201 3,193 3,263 2,966 2,953 2,981
Provision for (recovery of) income taxes 321 348 287 343 374 310 308 270
Non-controlling interests in subsidiaries, net of income taxes 26 27 25 26 27 26 26 27
Equity in net income of an associated company, net of income taxes 64 59 66 57 45 74 61 55
Net income – reported 1,566 1,450 1,332 1,541 994 1,177 1,176 1,297
Adjustments for items of note, net of income taxes
Amortization of intangibles1 104 102 108 112 115 117 123 112
Decrease (increase) in fair value of derivatives hedging the
reclassified available-for-sale debt securities portfolio (44) (3) (6) (81) 8 14 (23) (4)
Integration and restructuring charges relating to the
U.S. Personal and Commercial Banking acquisitions 12 28 16 13 18 5 – 46
Decrease (increase) in fair value of credit default swaps hedging
the corporate loan book, net of provision for credit losses (9) (5) (2) 3 4 (9) 2 7
(Recovery of) provision for income taxes due to changes
in statutory income tax rates – – – – – – – (11)
Provision (release) of insurance claims – – – – – – – (17)
General allowance increase (release) in Canadian Personal and
Commercial Banking and Wholesale Banking – – – – – – (44) –
Agreement with Canada Revenue Agency – – – – 121 – – –
Integration charges relating to the Chrysler Financial acquisition 5 6 3 – – – – –
Total adjustments for items of note 68 128 119 47 266 127 58 133
Net income – adjusted 1,634 1,578 1,451 1,588 1,260 1,304 1,234 1,430
Preferred dividends 48 43 40 49 48 49 48 49
Net income available to common shareholders – adjusted $ 1,586 $ 1,535 $ 1,411 $ 1,539 $ 1,212 $ 1,255 $ 1,186 $ 1,381
(Canadian dollars, except as noted)
Basic earnings per share
Reported $ 1.70 $ 1.59 $ 1.46 $ 1.70 $ 1.08 $ 1.30 $ 1.31 $ 1.45
Adjusted 1.77 1.73 1.60 1.75 1.39 1.44 1.37 1.61
Diluted earnings per share
Reported 1.69 1.58 1.46 1.69 1.07 1.29 1.30 1.44
Adjusted 1.77 1.72 1.59 1.74 1.38 1.43 1.36 1.60
Return on common shareholders’ equity 14.3% 14.4% 14.0% 15.5% 9.7% 12.2% 13.0% 14.0%
(billions of Canadian dollars)
Average earning assets $ 572 $ 547 $ 530 $ 521 $ 512 $ 502 $ 478 $ 470
Net interest margin as a percentage of average earning assets 2.28% 2.39% 2.38% 2.41% 2.31% 2.31% 2.39% 2.41%
QUARTERLY RESULTS
TABLE 14
1 Effective first quarter 2011, amortization of software is recorded in amortization
of intangibles. For the purpose of the items of note only, software amortization
is excluded from the amortization of intangibles.