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148th Annual Report 2003

Table of contents

  • Page 1
    14 8 t h A n n u a l R e p o r t 2 0 0 3

  • Page 2

  • Page 3
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 1 Welcome to TD Bank Financial Group's 2003 Annual Report. Our Annual Report aims to provide our shareholders, customers and employees with an overview of the year. It describes how our businesses performed in 2003, and how we repositioned the Bank for ...

  • Page 4
    ... of our performance. Diluted earnings per share tells us how much money shareholders receive for each share if we distributed all of our earnings to shareholders. 1 Operating cash basis measurements are explained in the "How the Bank Reports" section of the Management's Discussion and Analysis.

  • Page 5
    ... (loss) applicable to common shares after a charge for average invested capital. The total shareholder return represents the annual total return earned on an investment in the Bank's shares made at the beginning of a one, three or five year period. The return includes the change in the market price...

  • Page 6
    ... Ed Clark's direction, his solid management team and the execution of sound business strategies. I am pleased and honoured to report on behalf of the Board of Directors for the first time as Chairman of the Board. The shareholders of TD Bank Financial Group deserve and indeed are represented by an...

  • Page 7
    ... executive share ownership requirements ; - Reducing the use of annual cash incentive payments in favour of long-term equity awards to further align executive interests with long-term shareholder value. The Board will maintain a watchful eye on governance developments as the regulatory and business...

  • Page 8
    .... In Canada, TD Waterhouse's Financial Planning and Investment Advice businesses continue to grow in line with expectations. We are encouraged by referral growth and still see opportunity to offer financial advice, products and services to TD Canada Trust's strong base of 10 million customers. We...

  • Page 9
    ... are well positioned to deliver more stable and consistent earnings going forward. Corporate Management Today's business environment is in a constant state of change. Accounting, securities and regulatory standards are constantly evolving and becoming more complex. TD Bank Financial Group relies on...

  • Page 10

  • Page 11
    ... Sheet Arrangements Critical Accounting Policies Controls and Procedures How Our Businesses Performed Personal and Commercial Banking Wholesale Banking Wealth Management Corporate Corporate Management Factors That May Affect Future Results Managing Risk Strategic risk Credit risk Market risk Asset...

  • Page 12
    ...net of income taxes Gain on sale of mutual fund record keeping and custody business, net of income taxes Gains on sale of investment real estate, net of income taxes Restructuring costs, net of income taxes Income tax expense from income tax rate changes Net income applicable to common shares - cash...

  • Page 13
    ... operating cash basis net income (loss) applicable to common shares, divided by average invested capital. ROIC is a variation on the economic profit measure that is useful in comparison to equity cost of capital. Both ROIC and the cost of capital are ratios, while economic profit is a dollar measure...

  • Page 14
    ... management joint ventures. Non-trading foreign exchange income decreased by $61 million in 2003 to address a previously unhedged non-trading U.S. dollar exposure arising from our U.S. dollar Visa business. Somewhat offsetting the decline in other income were increases in discount brokerage fees...

  • Page 15
    ...(billions of dollars) $3.0 Trading income 2.5 2.0 1.5 1.0 .5 0 01 02 03 Net investment securities gains Credit fees Investment and securities services Insurance Other related to TD Waterhouse and $55 million related to the acquisition of Newcrest. Beginning in fiscal 2002, the Bank discontinued the...

  • Page 16
    ... in 2001. Efficiency ratio (percent) 100 % Efficiency ratio - reported basis 80 Efficiency ratio - operating cash basis 60 40 20 0 01 02 03 Taxes The Bank carries on many businesses in many different locations with differing outcomes, resulting in a mix of tax payments and tax recoveries. The...

  • Page 17
    ...Bank does not provide employees to the SPEs, nor does it have ownership interests in these SPEs and all fees earned in respect of these activities are on a market basis. Other financial transactions The Bank sells trading securities to SPEs in conjunction with its balance sheet management strategies...

  • Page 18
    ...The Bank's trading securities and trading derivatives are carried at fair value on the Consolidated Balance Sheet with the resulting realized and unrealized gains or losses recognized immediately in other income. The fair value of exchange traded financial instruments is based on quoted market rates...

  • Page 19
    ...by the Bank's management. Finite life intangible assets are tested for impairment whenever circumstances indicate that the carrying value may not be recoverable. See Note 5 to the Bank's Consolidated Financial Statements for more details. Accounting for pensions and post-retirement benefits The Bank...

  • Page 20

  • Page 21
    ... Management. Personal and Commercial Banking is a leader in Canada with approximately 10 million personal, small business, insurance and commercial customers. Under the TD Canada Trust brand, the retail operations provide a full range of financial products and services to our personal and small...

  • Page 22
    ...Improve customer attraction rates and increase share of business with our current customers: - Increase focus on growing personal chequing accounts. - Improve cross-sell rates by building on early successes with a recently introduced sales-prompt system. - Grow commercial and small business deposit...

  • Page 23
    ...included the impact of processing and collection issues that arose following conversion. Financial results of key product segments within Personal and Commercial Banking Real estate secured lending • Offers mortgages and home equity secured lines of credit through branches and other sales channels...

  • Page 24
    ... lending Small business banking Commercial banking Insurance, net of claims Other 1 Total $ 5,889 $ 5,768 1 Other revenue includes internal commissions on sales of mutual funds and other Wealth Management products, fees for foreign exchange, safety deposit box rentals and other branch services...

  • Page 25
    ... branches. Insurance Offers a broad range of insurance products through the TD Insurance and TD Meloche Monnex brands, including credit protection coverage on TD Canada Trust lending products. TD Life Group • Provides life and health insurance protection to 1.6 million customers. • Insurance...

  • Page 26
    ... suite of capital market services for our established customer base in Canada. • Operate as a niche investment bank outside of Canada by leveraging product capabilities or sector expertise. • Selectively use credit to support high return relationships. • Reduce non-core corporate lending risk...

  • Page 27
    ...our structured product businesses reflecting reduced corporate activity levels in structured transactions and lower market volatility. The equity investment portfolios, comprised of public and private equity, had marginally lower revenue in 2003 on reduced net security gains. Taking into account the...

  • Page 28
    ... 752 1,757 159 - $ 2001 886 1,957 320 - Corporate banking Investment banking and capital markets Equity investments Non-core Total $ 2,177 $ 2,668 $ 3,163 The Bank was a provider of financial services to the Enron group of companies, a former relationship now in the noncore portfolio. With the...

  • Page 29
    ..., TD Waterhouse International will focus on building critical mass in order to improve returns. Challenges in 2003 • Market fluctuations and investor uncertainty during the first half of 2003 put pressure on discount brokerage trading activity, advice based businesses and mutual fund assets...

  • Page 30
    ...in our Financial Planning business, rebranding TD Waterhouse Canada to include Investment Advice and Financial Planning and continued growth internationally of the discount brokerage business. Total AUM decreased by 6%, as negative markets and reduced institutional mandates resulted in ending AUM of...

  • Page 31
    ...157 100 233 - $2,288 Discount Brokerage Mutual Funds Private Client Group Asset Management Investment Advice Financial Planning Total 1 Certain revenues are presented net of internal transfers. TD Asset Management is recognized as one of the largest quantitative managers in the country. Services...

  • Page 32
    ...provision, net of income taxes Gain on sale of mutual fund record keeping and custody business, net of income taxes Gains on sale of investment real estate, net of income taxes Restructuring costs, net of income taxes Income tax expense from income tax rate changes Net income (loss) - reported basis

  • Page 33
    ...y s i s 31 Corporate Management The Corporate Management function of the TD Bank Financial Group is comprised of Audit, Compliance, Corporate and Public Affairs, Economics, Enterprise Technology Solutions (information technology), Finance, Human Resources, Legal, Marketing, Office of the Ombudsman...

  • Page 34
    ... Managing Risk section of this Annual Report starting on page 33 and in other regulatory filings made in Canada and with the U.S Securities and Exchange Commission (SEC). Industry factors General business and economic conditions in the regions in which we conduct business The Bank operates in Canada...

  • Page 35
    .... To enable this, information flows to the Senior Executive Team from the business units and from the corporate oversight functions, which are Risk Management, Audit, Legal, Compliance, Finance and Human Resources. The President and CEO and the EVP and Chief Risk Officer with the support of...

  • Page 36
    ...to all products and services that have credit risk; and • Setting the criteria for rating risk on business accounts, based on a 21-category rating system. The Risk Committee of the Board reviews and approves all major credit risk policies periodically. Each business unit has a credit group that is...

  • Page 37
    ... Personal credit Credit requests are evaluated using automated credit scoring systems or are directed to regional credit centres operating within clear authority limits. Once retail credits are funded, they are continually monitored within quantitative account management programs to identify changes...

  • Page 38
    ... Risk Officer. The Risk Committee of the Board oversees the management of market risk and approves all major market risk policies periodically. How we manage market risk in our trading activities Managing market risk is a key part of our business planning process. We begin new trading operations and...

  • Page 39
    ...impact of large market disturbances. Our credit trading businesses modified their exposure in the first half of 2003, in response to an improving credit environment. Stress test history (millions of dollars) $0 -50 Net trading related revenue vs. Value at Risk Stress test loss -100 (millions of...

  • Page 40
    ... executives, oversees and directs Treasury and Balance Sheet Management. The Risk Committee of the Board reviews and approves all asset liability management market risk policies periodically. How we manage our asset and liability positions We measure all product risks when products are issued, using...

  • Page 41
    ... the Bank's policy is to allow for a 25 basis point change in capital ratios for a 5% change in foreign exchange rates. Why product margins fluctuate over time Implementing a fully-hedged approach to asset liability management locks in margins on fixed rate loans and deposits as they are booked. The...

  • Page 42
    ... groups such as Information Technology, Finance, Compliance and Human Resources. Business unit management is responsible for ensuring that the business complies with the operational risk management framework through the establishment and maintenance of appropriate policies, procedures, internal...

  • Page 43
    ...it credit, market, operational, liquidity, investment or regulatory risk, all these elements must be managed effectively in order to mitigate any negative impact to the Bank's reputation. In light of the events of the last few years and as business practices evolve to address new operating paradigms...

  • Page 44
    ... loss is considered a cost of doing business and is included in product pricing. Economic capital is sufficient to absorb worst case loss at levels consistent with a AA ratings standard. Unlike rating agency and regulatory capital measures, economic capital refers solely to common equity capital...

  • Page 45
    ... businesses which are ratings sensitive, have significantly mitigated the impact of the ratings change on earnings during the year. Capital ratios About capital ratios Capital ratios are measures of financial strength and flexibility. The Office of the Superintendent of Financial Institutions Canada...

  • Page 46
    ... assets at year end (millions of dollars) 2003 Riskweighted balance 2002 Riskweighted balance 2001 Riskweighted balance Balance Balance Balance Balance sheet assets Cash resources Securities purchased under resale agreements Securities Loans (net) Customers' liability under acceptances...

  • Page 47
    ...custody business, net of income taxes Gains on sale of investment real estate, net of income taxes Restructuring costs, net of income taxes Income tax expense from income tax rate changes Diluted earnings (loss) per common share - reported basis Return on common shareholders' equity - operating cash...

  • Page 48
    ... rate Earning assets Deposits with banks Securities purchased under resale agreements Securities Investment Trading Total securities Loans Mortgages Consumer instalment and other personal Business and government Total loans Total earning assets Interest-bearing liabilities Deposits Personal Banks...

  • Page 49
    ... of dollars) TD Waterhouse fees and commissions Full service brokerage and other securities services Mutual fund management Credit fees Net investment securities gains Trading income Service charges Loan securitizations Card services Insurance, net of claims Trust fees Gains on sale of investment...

  • Page 50
    ... costs Marketing and business development Brokerage related fees Professional and advisory services Communications Capital and business taxes Postage Travel and relocation Other General total Total expenses Percentage increase (decrease) Efficiency ratio Net interest income Other income Total...

  • Page 51
    ... These services include: employee benefit plan audits, accounting consultations in connection with acquisitions and 1 1 divestitures, internal control reviews, and interpretation of financial accounting and reporting standards. 3 Tax fees are services performed by the Bank's auditors' tax division...

  • Page 52
    ... and other personal Total residential and personal Real estate development Commercial and industrial Residential Retail Real estate services Total real estate Agriculture Apparel and textile Automotive Cable Chemical Construction Financial Food, beverage and tobacco Forestry Government Health and...

  • Page 53
    ... and other personal Total residential and personal Real estate development Commercial and industrial Residential Retail Real estate services Total real estate Agriculture Apparel and textile Automotive Cable Chemical Construction Financial Food, beverage and tobacco Forestry Health and social...

  • Page 54
    ... provision Sectoral provision (net of transfer to specifics) Total Provision for credit losses as a % of net average loans 2 Canada Residential mortgages Personal Business and other Total Canada United States Other international General provision Sectoral provision Total 1 2 2003 $ 10 13 307 55...

  • Page 55
    ...Assets under administration Personal and Commercial Banking Retail custody and other Loans securitized Total Personal and Commercial Banking Wealth Management TD Waterhouse retail brokerage - Canada - United States and other international Other Wealth Management Total Wealth Management Total assets...

  • Page 56
    ...of directors who are not officers or employees of the Bank, oversees management's responsibilities for the financial reporting and internal control systems. The Bank's Chief Internal Auditor, who has full and free access to the Audit Committee, conducts an extensive program of audits in coordination...

  • Page 57
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 55 Consolidated Balance Sheet As at October 31 (millions of dollars) 2003 2002 ASSETS Cash resources Cash and non-interest-bearing deposits with other banks Interest-bearing deposits with other banks Securities purchased under ...

  • Page 58
    ... loss provision Other income Investment and securities services Credit fees Net investment securities gains Trading income Service charges Loan securitizations (Note 4) Card services Insurance, net of claims Trust fees Gains on sale of investment real estate (Note 22) Gain on sale of mutual fund...

  • Page 59
    ... Common dividends Stock options settled in cash, net of income taxes Obligations arising from adoption of accounting standard for employee future benefits, net of income taxes (Note 1) Other Balance at end of year Total common equity Total shareholders' equity See Notes to Consolidated Financial...

  • Page 60
    ... Gain on sale of mutual fund record keeping and custody business Depreciation Amortization of intangible assets Amortization of goodwill Goodwill impairment Restructuring costs Stock option expense Write down of investment in joint ventures Net investment securities gains Changes in operating assets...

  • Page 61
    ... at prevailing year-end rates of exchange. Foreign currency income and expenses are translated into Canadian dollars at the average exchange rates prevailing throughout the year. Unrealized translation gains and losses related to the Bank's investment positions in foreign operations, net of any...

  • Page 62
    ... Bank's funding, investing and credit portfolio management strategies. Unrealized gains and losses on non-trading derivatives are accounted for on a basis consistent with the related on-balance sheet financial instrument. Realized gains and losses resulting from the early termination, sale, maturity...

  • Page 63
    ... projected benefit method pro-rated on service and management's best estimates of investment returns on the plan assets, compensation increases, retirement age of employees and estimated health care costs. The discount rate used to value liabilities is based on a market rate as of the valuation date...

  • Page 64
    ...new guidance generally require recognition of costs related to severance, termination and exit and disposal activities in the period when they are incurred rather than at the date of commitment to an exit or disposal plan. (s) Insurance Earned premiums, net of fees, paid claims and changes in policy...

  • Page 65
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 63 Securities - Unrealized gains and losses (millions of dollars) Book value Gross unrealized gains Gross unrealized losses 2003 Estimated market value Book value Gross unrealized gains Gross unrealized losses 2002 Estimated market...

  • Page 66
    ... allowance 2002 Total 2001 Total1 Balance at beginning of year Provision for credit losses charged to the Consolidated Statement of Operations Transfer from sectoral to specific Write-offs2 Recoveries Other, including foreign exchange rate changes Allowance for credit losses at end of year...

  • Page 67
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 65 The following table presents information about gross impaired loans and net write-offs for components of reported and securitized financial assets as at October 31. (millions of dollars) Loans (net of allowance for credit losses) ...

  • Page 68
    66 TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results Future amortization expense for the carrying amount of intangible assets is estimated to be as follows for the next five years: (millions of dollars) 2004 2005 2006 2007 2008 $ 621 484 379 299 237 $2,020 For comparative ...

  • Page 69
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 67 NOTE 8 Deposits 2003 Demand 1 (millions of dollars) Notice 2 2002 Total Term 3 Total Personal Banks Business and government Total Non-interest-bearing deposits included above In domestic offices In foreign offices Interest...

  • Page 70
    ... a Total Capital ratio of less than 8%; or (d) the Bank has failed to comply with a direction of the Superintendent of Financial Institutions Canada to increase its capital or provide additional liquidity. The distribution rate on the trust securities is 7.60% per annum. TD Capital Trust Securities...

  • Page 71
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 69 NOTE 12 Capital stock The share capital of the Bank consists of: Authorized An unlimited number of Class A First Preferred Shares, without par value, issuable in series. (millions of dollars) An unlimited number of common ...

  • Page 72
    70 TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results By giving at least 40 days of notice prior to the date of conversion to all holders who have given a conversion notice, the Bank may redeem or find substitute purchasers at the purchase price of $25.00 cash per share together with...

  • Page 73
    ... under the terms of the plan, cash dividends on common shares are used to purchase additional common shares. The common shares may be purchased either from the Bank's treasury at an average market price based on the last five trading days before the date of the dividend payment with a discount range...

  • Page 74
    72 TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results The following table summarizes information relating to stock options outstanding and exercisable at October 31, 2003. Options outstanding Weighted average remaining contractua l life (years) Weighted average exercise price Options...

  • Page 75
    ...-pension post-retirement benefit plans In addition to the Bank's pension plans, the Bank also provides certain health care, life insurance and dental benefits to retired employees. The table on the following page presents the financial position of the Bank's non-pension post-retirement benefit plans...

  • Page 76
    ... Service cost - benefits earned Interest cost on projected benefit obligation Non-pension post-retirement benefit expense Actuarial assumptions at end of period Weighted average discount rate for projected benefit obligation Weighted average rate of compensation increase The assumed health care cost...

  • Page 77
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 75 The provision for (benefit of) income taxes shown in the Consolidated Statement of Operations differs from that obtained (millions of dollars) by applying statutory tax rates to the income (loss) before provision for (benefit of)...

  • Page 78
    ... Cash resources Effective yield Securities purchased under resale agreements Effective yield Investment securities Effective yield Trading securities Loans Effective yield Other Total assets Liabilities and shareholders' equity Deposits Effective yield Obligations related to securities sold short...

  • Page 79
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 77 Interest rate risk by currency (billions of dollars) Floating rate Within 3 months 3 months to 1 year Total within 1 year 1 year to 5 years Over 5 years Noninterest sensitive 2003 Canadian currency on-balance sheet position ...

  • Page 80
    ... markets relating to movements in interest rates, foreign exchange rates, equity prices and credit spreads. This risk is managed by senior officers responsible for the Bank's trading business and is monitored separately by the Bank's Risk Management Group. The estimated fair value of exchange traded...

  • Page 81
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 79 Fair value of derivative financial instruments (millions of dollars) Average 1 fair value for the year Positive Negative Positive 2003 Year-end fair value Negative Positive 2002 Year-end fair value Negative Derivative financial...

  • Page 82
    80 TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results Credit exposure of derivative financial instruments at year end (millions of dollars) Current replacement cost 1 Credit equivalent amount 2003 Riskweighted amount Current replacement cost 1 Credit equivalent amount 2002 ...

  • Page 83
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 81 (c) The Bank and its subsidiaries are involved in various legal actions in the ordinary course of business, many of which are loan-related. In management's opinion, the ultimate disposition of these actions, individually or in the...

  • Page 84
    ... businesses. The Wholesale Banking segment provides services in the areas of investment banking, merchant banking, mergers and acquisitions, fixed income, foreign exchange, derivative products, money market, equities and corporate banking in Canada and internationally. Wealth Management provides...

  • Page 85
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 83 Results by business segment (millions of dollars) Personal and Commercial Banking Wholesale Banking Wealth Management 2003 Net interest income (on a taxable equivalent basis) Provision for credit losses Other income Non-interest ...

  • Page 86
    84 TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results Results by geographic distribution The Bank earns revenue in Canada and in international locations. Reporting is based on the geographic location of the unit responsible for recording the revenues or assets. (millions of dollars) ...

  • Page 87
    ...of dollars) Human Resources Real Estate Technology Other Total 2002 Total Balance at beginning of year Restructuring costs arising during the year Wholesale Banking1 Wealth Management Amount utilized during the year Personal and Commercial Banking Wholesale Banking Wealth Management Balance at end...

  • Page 88
    ...compensation Employee future benefits Restructuring costs Loan securitizations Non-controlling interest in TD Mortgage Investment Corporation Future income taxes Available for sale securities Derivative instruments and hedging activities Guarantees Asset retirement obligations Other Net income (loss...

  • Page 89
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 87 Condensed Consolidated Balance Sheet As at October 31 (millions of dollars) Canadian GAAP Adjustments 2003 U.S. GAAP Canadian GAAP Adjustments 2002 U.S. GAAP Assets Cash resources Securities purchased under resale agreements ...

  • Page 90
    ...the Consolidated Balance Sheet at their estimated fair values. Unrealized gains and losses arising from changes in fair values of available for sale securities are reported net of income taxes in other comprehensive income. Other than temporary declines in fair value are recorded by transferring the...

  • Page 91
    TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results 89 NOTE 26 Future accounting changes Mutual funds Mutual funds in Canada may be considered VIEs with the possibility that the Bank sponsors be considered the primary beneficiary. The Bank is the sponsor of several mutual funds with...

  • Page 92
    ...Equity Partners Ltd. TD Capital Group Limited TD Capital Trust TD Capital Trust II TD Investment Management Inc. TD Investment Services Inc. TD Life Insurance Company TD Mortgage Corporation Canada Trustco Mortgage Company TD Waterhouse Bank N.V. Canada Trustco International Limited The Canada Trust...

  • Page 93
    ... investors to fund the purchase of loans. The Bank normally accounts for these transfers as a sale, provided certain conditions are met, and accordingly, the loans are removed from the Consolidated Balance Sheet. Swaps: Contracts that involve the exchange of fixed and floating interest rate payment...

  • Page 94
    ...,673 44,821 Condensed Consolidated Assets Balance Sheet Cash resources Securities purchased under resale agreements Securities Loans (net) Other Total Liabilities Deposits Other Subordinated notes and debentures Non-controlling interest in subsidiaries Shareholders' equity Capital stock - preferred...

  • Page 95
    ... 882 $ $ 1995 2,498 180 2,318 1,461 3,779 2,413 1,366 572 - 794 38 756 $ 1994 $ 2,560 345 2,215 1,179 3,394 2,209 1,185 502 - 683 40 643 1 Operating cash basis measurements are explained in the "How the Bank reports" section on page 10 of this Annual Report.

  • Page 96
    ...income2 Dividends Book value Closing market price Closing market price to book value Closing market price appreciation Total market return Return on common shareholders' equity Return on risk-weighted assets Efficiency ratio Net interest rate margin Common dividend payout ratio Dividend yield3 Price...

  • Page 97
    ..., the price earnings ratio is computed using basic net income per common share. Includes customers' liability under acceptances. Reflects the number of employees on a full-time equivalent basis. Includes retail bank outlets, private client centre branches, estates and trusts branches. Operating cash...

  • Page 98
    ...TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Quarterly Results Quarterly Results Quarterly results - reported basis 2003 Quarter ended (millions of dollars) October 31 July 31 April 30 January 31 October 31 July 31 April 30 2002 Quarter ended January 31 Net interest income Provision for credit...

  • Page 99
    ...: the London Stock Exchange the Irish Stock Exchange Dividend reinvestment plan For information regarding the Bank's dividend reinvestment plan, please contact our transfer agent or visit our web site at www.td.com under Investor Relations/Shares and Debt Information. Debenture services Trustee for...

  • Page 100
    ... Board of Directors and the management of TD Bank Financial Group are committed to leadership in corporate governance. We have designed our corporate governance policies and our practices to ensure that we are focused on our responsibilities to our shareholders and on creating long-term shareholder...

  • Page 101
    ...and Director Institute for International Business Joseph L. Rotman School of Management University of Toronto Toronto Darren Entwistle President and Chief Executive Officer TELUS Corporation Vancouver Henry H. Ketcham Chairman of the Board, President and Chief Executive Officer West Fraser Timber Co...

  • Page 102
    ... Bank shares worth six times the annual retainer; • The provision of high-quality information for directors - orientation for new directors, meaningful educational presentations on a continual basis, access to management and sufficient time to review material in advance of meetings. Board members...

  • Page 103
    ... pursuant to the policy. The Audit Committee also pre-approves the audit services and the fees to be paid. Additional information regarding audit and non-audit services can be found on page 49. This year, the Audit Committee established a formal evaluation process to review the performance of...

  • Page 104
    ...A. Marks Office of the Ombudsman Toronto Risk Management William R. Gazzard 1 Toronto Nico Meijer 1 Compliance Toronto Market Risk Policy Philip D. Ginn Richmond Hill Computing Services Personal and Commercial Banking Andrea S. Rosen Toronto Vice Chair President, TD Canada Trust Bernard T. Dorval...

  • Page 105
    ... Operations Steven Mantle 1 Oakville Managed Products, Services and Solutions David P. Pickett 1 Toronto Practice Management John G. See Oakville TD Waterhouse Discount Brokerage and Financial Planning Wealth Management - USA Senior Vice Presidents: Joseph N. Barra Dix Hills, New York Customer Care...

  • Page 106
    ... to offering our employees a positive, supportive, healthy and rewarding workplace. To do so, we have developed a range of benefits and services that give employees flexibility in their work options, the ability to manage their changing work/life obligations, and access to development opportunities...

  • Page 107

  • Page 108
    ... Group serves more than 13 million customers in three key businesses: Personal and Commercial Banking including TD Canada Trust; Wealth Management including the global operations of TD Waterhouse; and Wholesale Banking including TD Securities, operating in key financial centres around the globe...