TD Bank 2014 Annual Report Download - page 26

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS24
(millions of Canadian dollars) Canadian Wholesale
Retail U.S. Retail Banking Corporate Total
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Net interest income (loss) $ 9,538 $ 8,922 $ 6,000 $ 5,173 $ 2,210 $ 1,982 $ (164) $ (3) $ 17,584 $ 16,074
Non-interest income (loss) 9,623 8,860 2,245 2,149 470 428 39 (252) 12,377 11,185
Provision for (recovery of) credit losses 946 929 676 779 11 26 (76) (103) 1,557 1,631
Insurance claims and related expenses 2,833 3,056 – – – – – – 2,833 3,056
Non-interest expenses 8,438 7,754 5,352 4,768 1,589 1,542 1,117 1,005 16,496 15,069
Income (loss) before provision for income taxes 6,944 6,043 2,217 1,775 1,080 842 (1,166) (1,157) 9,075 7,503
Provision for (recovery of) income taxes 1,710 1,474 412 269 267 192 (877) (800) 1,512 1,135
Equity in net income of an investment
in associate, net of income taxes – – 305 246 – – 15 26 320 272
Net income (loss) – reported 5,234 4,569 2,110 1,752 813 650 (274) (331) 7,883 6,640
Adjustments for items of note,
net of income taxes1
Amortization of intangibles – – – – – – 246 232 246 232
Integration charges and direct transaction costs
relating to the acquisition of the credit card
portfolio of MBNA Canada 125 92 – – – – – – 125 92
Fair value of derivatives hedging the reclassified
available-for-sale securities portfolio – – – – – – (43) (57) (43) (57)
Set-up, conversion and other one-time costs
elated to affinity relationship with Aimia
and acquisition of Aeroplan Visa credit
card accounts 131 20 – – – – – – 131 20
Impact of Alberta flood on the loan portfolio – – – – – – (19) 19 (19) 19
Gain on sale of TD Waterhouse
Institutional Services – – – – – – (196) – (196) –
Litigation and litigation-related charge/reserve – – – 100 – – – – – 100
Restructuring charges – – – – – – – 90 – 90
Total adjustments for items of note 256 112 – 100 – – (12) 284 244 496
Net income (loss) – adjusted $ 5,490 $ 4,681 $ 2,110 $ 1,852 $ 813 $ 650 $ (286) $ (47) $ 8,127 $ 7,136
(billions of Canadian dollars)
Average common equity $ 12.6 $ 10.8 $ 25.1 $ 22.0 $ 4.7 $ 4.2 $ 9.6 $ 7.8 $ 52.0 $ 44.8
CET1 Capital risk-weighted assets2,3 100 93 158 138 61 47 9 8 328 286
RESULTS BY SEGMENT
TABLE 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.
2 Prior to 2014, amounts have not been adjusted to reflect the impact of the New
IFRS Standards and Amendments.
3 Effective the third quarter of 2014, each capital ratio has its own risk-weighted
asset (RWA) measure due to the Office of the Superintendent of Financial Institu-
tions (OSFI) prescribed scalar for inclusion of the Credit Valuation Adjustment
(CVA). Effective the third quarter of 2014, the scalars for inclusion of CVA for
CET1, Tier 1, and Total Capital RWA are 57%, 65%, and 77% respectively.