TD Bank 2012 Annual Report Download - page 5

3TD BANK GROUP ANNUAL REPORT 2012 PERFORMANCE INDICATORS
Performance Indicators
Performance indicators focus effort, communicate our priorities and benchmark TD’s performance as we
strive to be The Better Bank. The following table highlights our performance against these indicators.
2012 PERFORMANCE INDICATORS
FINANCIAL
• Deliver above-peer-average total shareholder return2
• Grow earnings per share (EPS) by 7 to 10%
• Deliver above-peer-average return on risk-weighted assets
BUSINESS OPERATIONS
• Grow revenue faster than expenses
• Invest in core businesses to enhance customer experience
CUSTOMER
• Improve Customer Experience Index (CEI)4 scores
• Invest in core businesses to enhance customer experience
EMPLOYEE
• Improve employee engagement score year-over-year
• Enhance the employee experience by:
– Listening to our employees
– Building employment diversity
– Providing a healthy, safe and flexible work environment
– Providing competitive pay, benefits and performance-
based compensation
– Investing in training and development
COMMUNITY
• Donate minimum of 1% of domestic pre-tax profits
(five-year average) to charitable and not-for-profit organizations
• Make positive contributions by:
– Supporting employees’ community involvement and
fundraising efforts
– Supporting advancements in our areas of focus, which include
education and financial literacy, creating opportunities for
young people, creating opportunities for affordable housing
and the environment
– Protecting and preserving the environment
RESULTS1
• TD return: 11.9% vs. Canadian peer average of 11.1%
• 8% adjusted EPS growth
• TD return: 2.83% vs. Canadian peer average of 2.35%3
• Revenue growth exceeded expense growth by 1.6%
• Refer to “Business Segment Analysis” in the accompanying
MD&A for details
• CEI score 32% (target 29.8%)
• Refer to “Business Segment Analysis” in the accompanying
MD&A for details
• Employee engagement score5 was 4.16 in fall 2012 vs. 4.18
in fall 2011
• See TD’s 2012 Corporate Responsibility Report available
March 2013
• 1.3%6 or $45.3 million, in donations and community sponsorships
in Canada vs. 1.3% or $42.6 million, in 2011
• US$19.54 million in donations and community sponsorships in the
U.S. vs. US$23.7 million in 2011
• £64,023 in donations and community sponsorships in the U.K.
vs. £73,857 in 2011
• $316,000 in domestic employee volunteer grants to 496 different
organizations
• $25.9 million, or 57.2% of our community giving, was directed
to promote our areas of focus domestically
• $4.8 million distributed to 1,089 community environmental
projects through TD Friends of the Environment Foundation;
an additional $5.95 million from TD‘s community giving budget
was used to support environmental projects7
1
Performance indicators that include an earnings component are based on TD’s full-
year adjusted results (except as noted) as explained in “How the Bank Reports” in
the accompanying MD&A. For peers, earnings have been adjusted on a comparable
basis to exclude identified non-underlying items.
2
Total shareholder return is measured on a one-year basis from November 1, 2011,
to October 31, 2012.
3
Return on risk-weighted assets measured YTD as at July 31, 2012, for comparison
purposes. TD’s return on risk-weighted assets for 2012 was 2.83%.
4
CEI is a measurement program that tracks TD customers’ loyalty and advocacy.
5
Scale for employee engagement score is from one to five.
6
Calculated based on Canadian Cash Donations/five-year rolling average domestic
net income before tax.
7
Includes a one-time donation of $500,000 from TD Friends of the
Environment Foundation to The Nature Conservancy of Canada in
support of the TD Forests program.