TD Bank 2014 Annual Report Download - page 33

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS 31
BUSINESS HIGHLIGHTS
• Achieved record adjusted earnings of US$1,938 million
in a challenging operating environment.
• Continued to focus on providing legendary customer service
and convenience:
– Named the 2014 “Best Big Bank in America” by
Money Magazine.
– Continued to offer more store hours and increased
convenience in markets where we compete.
– Continued to invest in our digital channel experience,
including mobile and online banking.
• Gained profitable market share in both loans and deposits
while maintaining strong credit quality.
• Expanded and integrated wealth product offerings.
CHALLENGES IN 2014
• The sustained low interest rate environment contributed
to further margin compression.
• Slow economic growth created a challenging environment
for retail lending.
• We faced fierce competition for new and existing customers
from U.S. banks and non-bank competitors.
• Regulatory and legislative changes had an impact on the
operating environment, TD’s product offerings, and the
Bank’s earnings.
INDUSTRY PROFILE
The U.S. banking industry is highly competitive and includes several
very large financial institutions as well as small community and
savings banks, finance companies, credit unions, and other providers
of financial services. The keys to profitability are attracting and retain-
ing customer relationships with legendary service and convenience,
continued investment in products, services and distribution channels
to meet customers’ evolving needs, rational product pricing, optimiz-
ing fee-based businesses, disciplined risk management, and effective
expense control. In the U.S., the wealth management industry is large
and consists of banks, insurance companies, independent mutual
fund companies, discount brokers, full service brokers, and indepen-
dent asset management companies. TD’s U.S. wealth business
competes against national and regional banks as well as non-bank
wealth organizations.
OVERALL BUSINESS STRATEGY
The strategy for U.S. Retail is to:
• Provide integrated banking services to customers across all of our
distribution channels, including digital, phone, ATM, and branch.
• Invest in the future, outgrow the competition, and deliver consistent
top tier earnings performance.
• Deliver legendary service and convenience, and make customers
proud to be associated with TD.
• Operate with excellence, and make the customer and employee
experience simple, fast, and easy to drive efficiency.
• Only take risks we understand and can manage, and deploy capital
prudently within a well-defined risk appetite.
• Be recognized as an extraordinary and inclusive place to work by
attracting, developing, and retaining top talent.
• Strengthen our presence in the higher growth markets along the
U.S. Eastern Seaboard that comprise our U.S. footprint.