TD Bank 2014 Annual Report Download - page 24

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS22
(millions of Canadian dollars, except as noted) For the three months ended
2014
2013
Oct. 31 Jul. 31 Apr. 30 Jan. 31 Oct. 31 Jul. 31 Apr. 30 Jan. 31
Net interest income $ 4,457 $ 4,435 $ 4,391 $ 4,301 $ 4,183 $ 4,145 $ 3,901 $ 3,845
Non-interest income 2,995 3,074 3,044 3,264 2,817 2,940 2,706 2,722
Total revenue 7,452 7,509 7,435 7,565 7,000 7,085 6,607 6,567
Provision for credit losses 371 338 392 456 352 477 417 385
Insurance claims and related expenses 720 771 659 683 711 1,140 609 596
Non-interest expenses 4,331 4,040 4,029 4,096 4,164 3,771 3,632 3,502
Provision for (recovery of) income taxes 370 330 447 365 238 249 289 359
Equity in net income of an investment in associate, net of income taxes 86 77 80 77 81 75 57 59
Net income – reported 1,746 2,107 1,988 2,042 1,616 1,523 1,717 1,784
Adjustments for items of note, net of income taxes1
Amortization of intangibles 62 60 63 61 59 59 58 56
Integration charges and direct transaction costs relating to the
acquisition of the credit card portfolio of MBNA Canada 54 27 23 21 14 24 30 24
Fair value of derivatives hedging the reclassified available-for-sale
securities portfolio – (24) – (19) 15 (70) 22 (24)
Set-up, conversion and other one-time costs related to affinity
relationship with Aimia and acquisition of Aeroplan Visa
credit card accounts – 16 – 115 20 – – –
Impact of Alberta flood on the loan portfolio – (19) – – (29) 48 – –
Gain on sale of TD Waterhouse Institutional Services – – – (196) – – – –
Litigation and litigation-related charge/reserve – – – – 30 – – 70
Restructuring charges – – – – 90 – – –
Total adjustments for items of note 116 60 86 (18) 199 61 110 126
Net income – adjusted 1,862 2,167 2,074 2,024 1,815 1,584 1,827 1,910
Preferred dividends 32 25 40 46 49 38 49 49
Net income available to common shareholders and
non-controlling interests in subsidiaries – adjusted 1,830 2,142 2,034 1,978 1,766 1,546 1,778 1,861
Attributable to:
Non-controlling interests – adjusted 27 27 26 27 27 26 26 26
Common shareholders – adjusted $ 1,803 $ 2,115 $ 2,008 $ 1,951 $ 1,739 $ 1,520 $ 1,752 $ 1,835
(Canadian dollars, except as noted)
Basic earnings per share
Reported $ 0.92 $ 1.12 $ 1.05 $ 1.07 $ 0.84 $ 0.79 $ 0.89 $ 0.93
Adjusted 0.98 1.15 1.09 1.06 0.95 0.82 0.95 1.00
Diluted earnings per share
Reported 0.91 1.11 1.04 1.07 0.84 0.79 0.89 0.93
Adjusted 0.98 1.15 1.09 1.06 0.95 0.82 0.95 1.00
Return on common equity – reported 13.1% 16.3% 15.9% 16.4% 13.4% 12.8% 15.1% 15.6%
Return on common equity – adjusted 14.0 16.8 16.6 16.2 15.1 13.3 16.1 16.7
(billions of Canadian dollars, except as noted)
Average earning assets $ 824 $ 806 $ 795 $ 787 $ 748 $ 742 $ 723 $ 709
Net interest margin as a percentage of average earning assets 2.15% 2.18% 2.26% 2.17% 2.22% 2.22% 2.21% 2.15%
1 For explanations of items of note, see the “Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income” table in the “Financial
Results Overview” section of this document.
QUARTERLY RESULTS
TABLE 14