The Toronto-Dominion Bank (TD) 1 Dec 222022 Q4 Earnings call transcript

Good afternoon, everyone and welcome to the TD Bank Group Q4 2022 Earnings Conference Call. I would now like to turn the meeting over to Ms. Brooke Hales. Please go ahead, Ms. Hales.

operator. you, Thank welcome investor and Bank fourth Group’s Good to XXXX presentation. quarter afternoon TD

Also begin Canadian analysts remarks Michael present Banking; on from on assumptions presentation bank’s and We phone. the were assisting of and today the presentation objectives and in will making invite results. financial are Head, today’s applied Head, and the anticipated will Any Ahmed, purpose X. performance. with management represent questions the Slide what your actual Wealth caution contains presented Risk Chief after Management and and After certain risks understanding are there our turn Group Wholesale Raymond like At that quarter Officer, Kelvin Rhodes, is which for listeners are answer Douglas, views bank’s this the Head, contained in bank’s forward-looking Ajai present will Salom, forward-looking and that Bambawale, financial Riaz position, forward-looking bank’s Group of statements. statements in or shareholders Please offer to from which the Tran, quality, will materially pre-qualified Banking; Insurance; I the this factors from this analysts could Bank, comments presentation TD Convenient differ Chun, Personal America’s these would that our Banking. to CEO, Head, discussed to Group priorities statements results CFO, then Paul Bank; questions fourth Business operating Leo investors Canadian and credit CEO. Most President Masrani, Bharat we Group time, that and

to referring listeners uses other not to to performance. assess be results that each be adjusted would businesses the its with how results, such understanding his appropriate non-GAAP bank Forward-looking that I and remarks. as bank the like measure views purposes. bank’s believes overall bank in The Bharat adjusted measures, statements provide of management to adjusted may readers for also performance. will better financial remind a results

of non-GAAP available information let assumptions report results of use our over items forward-looking are With to to all and annual presentation other on measures, Additional bank’s shareholders. note, XXXX me turn financial bank’s reported factors information and in related the the to and the Bharat. that,

a you, reflecting to thank our of Earnings X% deposit-rich Thank X% for and billion Brooke for everyone $X.X us strong activity XX% grew TD. was QX increased joining franchise. benefits Revenue the today. to quarter EPS you year-over-year, and and customer increased rose $X.XX.

performance below PCLs have some seen in levels. TD’s credit metrics remains key we increase quarter, normalized from remaining this through-the-cycle While well practices credit sound, underwriting benefiting with

Equity XX.X%, generation, shares organic for significant Tier divestment hedge of the portion Schwab ratio new continue performed future to people, Our drive in in this banking X in TD’s in ended the capital reflecting growth. businesses in well Horizon capabilities to the technology the and First environment, have to and quarter us our August. make strategic a acquisition of our in businesses our at Common goodwill investments enabling

of We we to our position strength. dividend quarter of this the earnings Horizon expect and increase, of a post continue a this from XX% above of entering accomplished $X.XX Cowen declared franchise and I ratio comfortably and $X.XX dividend CETX today bringing what We are the power proud confident have closing the to bank’s our and we share. in am XXXX remain per be year to transactions. First

TD was portfolio in U.S. year. patent the fifth market been keep of quarter, has to innovate and in developments have our Bank bank’s named largest Canada the largest Enterprise-wide, and customers, for the reflecting this the customers. build to financial We strength pace new navigate our patent continue Using consecutive granted highly capabilities personalized the challenges helping TD Among industry-leading portfolio applications financial with to our North them by institutions, And patent and this and are Best goals. year experiences mobile financial their and insights, delivering for Consumer the offerings. the digital meet of in capabilities Finance, Digital our online second Global AI-powered America XXX we

now me from some our turn Let each of review to businesses QX. highlights and

XXXX Banking momentum, The billion. of Canadian the including Our customer with the acquisition segment $X.X acquisition Personal Commercial new highest in to year bank Canada finished since and earnings with personal record net market. delivered

In committed among international and new for highest banking introduced and Canadians financial X.X% helping year-over-year. portfolio package, gains a our our including We We industry-leading launched market specifically category. are annual and institutions. retention at estate in to ever share first real its Canadian average quarter, level students, share since by propositions, designed TD’s business, rates non-term newly lending market growth XXXX, have this customer-centric loan highest in increased this is secured saw value achieved deposits

organic among rewards XXXX reflecting TD Infinite according in delivered growth in TD card Card double-digit lineup offers and Study, business customer a growth categories. Canadian best small had loan to the and customer their the Visa other be TD highest record issuer Satisfaction in card acquisition business Canada Cash to more named also experiences. Business spend diverse with any ranking Aeroplan Rewards big Back respective our Card by compelling TD Canada Small to banks, satisfaction commitment particularly recognized We credit Visa banking readers proud Power’s Banking legendary at year-over-year. The Infinite than five and and was driven loan again, J.D. bank, XX% the with XXXX

record the the the Turning adapt despite enhancements overdraft our delivered the of of to to revenues implementation strong bank’s Retail policies, with previously Bank $XXX the continue to demonstrating announced market million, to our evolves. earnings ability U.S., U.S. as

were from and investment entrust quarter. in footprint card TD loan year-over-year customers America’s up year. business in were of X% And grew on U.S. approved excluding X% the flat With earnings business share volumes took ago. a specialty this with volumes million, billion continue credit year-over-year, XX% Schwab Bank sixth were small deposits a growth administration total X% in environment loan Most middle-market we to deposits business. more loan increased $XXX growth maintain our in year-over-year, strong competitive banking, of Bank, market Convenient from business in the as spend our with leadership of in and their contribution increased $X.X of continued number PPP year Mortgage We one segment lending. our Commercial reflecting forgiveness, while loans ranking for by personal consecutive units small highly

XXXX to continue to to the agreements the for bank of We and respectively, enabling leading extension exclusive also and the announced and consumer our Nordstrom of labeled retailers. be co-branded with cards issuer these credit Target XXXX private

segment, to provide acquisition First I on Retail Horizon. Before we leave of an the our want update U.S.

U.S. subject We fiscal conditions, from are to the in authorities. customary including Canadian currently planning close approvals XXXX to half first closing regulatory transaction of and the

excited this stakeholders. We the our acquisition all that are about for benefits will deliver of

a we success. effective quarter, reporting Management significant in This established TD’s we As these segment. contribution make new and Wealth October, to alignment announced businesses that Insurance this the and growing reflects

by of and volatility, power as $XXX higher higher This segment mix presented volume market events of demonstrating and benefit volumes severe the business diversified challenges the the and interest insurance million, weather normalization. quarter, rates trading offset earned our the claims

a growing extension asset help access launching turn meet to TD is liquid investors Asset market alternative an navigate historically investments. to exposure with this recently continued base offer of innovate to only new needs, clients record of investors. our franchise retail year, net Our advice portfolio tools, retail retirement growth client TD to to multi-strategy risk-focused to The available advisers alternative them and achieved pool, institutional a fund our solution to environment. highly successful to challenging Management businesses the as provides

Our one over with completed sales continued transformation from business new direct-to-consumer insurance number digitally of end-to-end. XX% this digital quarter its

and its intends market is an XXXX. focused services business expand launching insurance to into leveraging by Our underserved on in its business insurance strength small competitive

were including Revenue TD a that environment roughly to of long-term needs year-over-year I sole it most. Banks, underwriting million its weaker of global €X transaction again diversified address other their net as business, business communities. by Finally, our trading customers acted Mobile efforts parts ensure to higher delivered Fiona want of of to Europe book their customer offset Atlantic host impact banking, €XXX the thank for their reflecting and was lending Unit Canada our In support the revenue, there our Ukrainian bond social reopening commitment business, refugees our billion through X-year was model. the Response and Securities we supporting of Hurricane a ground, income to by in of flat inclusion Insurance we million. $XXX Wholesale strength across colleagues Banking mattered the our when runner on Council in Development the of our TD benefits insurance were that on for providing tremendous acknowledge impacted the

for made significant favor. November Cowen progress closing voting acquisition. On over the have those in XX, shareholders XX% with the approved We of transaction, Cowen preparing in of voting, the

quarter and pleased to experiences. XXXX. and segments am differentiated accelerate with transaction planning very the we Overall, our will And to come. XXXX. when certain which customers in the more retail legendary are We We awaiting first regulatory the in close approvals of are in results calendar delivered with I the won announced strategic our years closed acquisitions, in growth momentum we built meaningfully two

XX% expect we over adjusted EPS medium-term. we know, X% have you to the As by to that grow said

the strong announced we ahead, tensions, for we believe and medium-term to both the for of shift range shareholders volatility positioned potential proud generated including proud the target slowdown. closing year the year rate geopolitical acquisitions environment or returns operating XXXX. macroeconomic delivered all that this our macroeconomic will For am unless stakeholders. balance, meet for headwinds, and we ahead. I our results and there tailwinds, I momentum financial equally anticipated and complex On are am how exceed we of dramatically, value conditions in including of we the were and the economic the bank our have of

solutions Wildlands This the Ontario, to change. development biodiversity advisory in conservation business, developed project country formation investment and Nature quarter, into private TD carbon is transition we against a and carbon on financing a fight help Northern and supports the the is of largest new providing Canada. our supporting the $XX carbon By Conservancy This undertaken and clients by the announced climate single loss Carbon its the through of Project economy. markets the lower growth in focused to ever Securities voluntary Boreal million of

tenth diversity pursuing in owned and across working also certifications, are promoting partnership supplier Minority Supplier new for program in TD’s had Council. by upon We and greater businesses committed the promote businesses a in as funding. Canadian longstanding certification supporting also better for refugees. for access refugee-owned entrepreneurs This builds diversity sponsored procurement. innovating with is the government who in leadership recently arrived refugees TD market to suppliers inclusion diversity, Canada our chains. and economic will TD Aboriginal equitable program to provide supply support corporate access for

and As thanking Trust effort support Canada. the Citizens systemic part in announced to that, minority would of globe. like of I performance lives Fund at they for these bank’s are the the million U.S., In of I strong turn for communities help based for TD million is discrimination your you commitment, aims black to colleagues the things confident XXXX. institution bankers our center am a and the over program entrepreneurs. achievements to do in around across racism and our the combating Kelvin. black X-year and we responsible the will meet we inclusive They This in hard communities needs upon Enriching our support in and With Atlanta, program lending inclusive Black build brought $XX Opportunity I reason work dedication. everything the an deposit continued the anti-black Bank, TD. of by to Thank that are of growth customers, XXXX further end a the we in invested to Southeast. will $X

Bharat. XX. to Good Slide afternoon, you, turn everyone. Please Thank

the earnings reflecting expenses rate $XX.X X% X% on compared Slide retailer increased adjusted calculate the Adjusted were employee-related Consistent $XX.X and card strategic operating the increased net billion interest modifications XX% and change. of after card up the to Horizon gain share Reported spend in revenue respectively. and per leverage recovery million bank and $X.XX, expenses these bank and and U.S. respectively, and supporting from was turn Reported quarters, First fiscal adjusted was increased foreign and profits how impact of Personal prior up share, portfolio, adjusted up of X% and businesses. shares. expenses margin XXXX, shows increased XX% $X.XX, Provision includes growth. of was with X%, Commercial up partners strategic the along XXXX XX translation XX. and the a per the and the Please and was in respectively. X% the the billion of and Banking currency capital credit X% of prior of fair PTPP higher on business portfolio, Slide ex-FX. PTPP XX% PTPP earnings reflecting net losses to removing growth value these from Adjusted For Reported Absent $X.X the total share XX% with adjusted total sale billion U.S. before X.X%, bank we year. for modifications. Schwab impact higher volatility insurance acquisition closing and the earnings the revenue expansion of volume gain $XXX with from earnings reported mitigation

revenue of quarter reflect of FX higher expenses, we growth. digital a increase made to For had of in $X.XX, million per recognition billion as quarter per Horizon impact across the and X% personal and and XX% $X.XX, losses. reflecting sale volume impact unused XX% of share, rate the interest from expansion and First Schwab impact include were favorable and and reported frontline step impact by number $XXX year. the credit increased Adjusted the of recovery net was mitigation Adjusted XX%, full higher million driven conscious decision acquisition XX% margin the investments translation. business $X.X Adjusted in bank well of volatility commercial FX equivalent QX. compared and to X% shares. tax on growth a and of of capital including on of increased the Reported revenue our businesses increased earnings the share of revenue gain closing environment XX% adjusted areas, earnings in of additional and and last losses Provision stock the a full-time respectively. expenses banking $XXX in increase includes tax earnings X% and as the was spend with mix gain merit announced supporting earnings the strong the respectively adjusted earnings employee-related translation up XXXX, colleagues. fourth Employee-related up respectively. for fiscal Reported expenses QX, billion In $X.X and earnings and our up and a an properties and

to We expect in moderate basis. momentum some of a XXXX that quarter-over-quarter fiscal on growth

reflecting card revenue. with retailer Our the year-over-year, up reported reflecting X.X% billion, reported Total rising percentage income foreign reflecting partially loan Total a XX. PCL, offset Retail spend portfolio, of $XXX and up business PTPP interest higher modifications, volume. including points points offset Average was quarter revenue, modifications. increased loan was growth and medium-term personal X% as million million net rose Retail originations, before these due reflecting reflecting growth, higher in $XX growth net Reported utilization to to acquisition. Horizon to after exchange and X% gains employee-related Please acquisition XX%, offset Please PPP margins, non-term flat, volume, First deposits. market turn business Revenue higher $X.X income year-over-year. increased Commercial activity, Banking reflecting was adjusted including up industry-leading up quarter higher an bank in interest loans basis loan from X rates, X%, XX% charges higher volumes volumes and to prior XX. growth, strong year-over-year in up over margins. and XX margin. lower compared non-interest increased the was million, higher U.S. in X%, increased turn PCL goal X% U.S. and loans Adjusted XX% reflecting income of for volumes deposits, and PPP sequentially. sequentially. customer annualized basis deposit were X.X%, adjusted line the integration-related was loan by share XX% partners’ U.S. new for Average $XXX up offset technology up client by related XX%, the Slide increased net volumes was activity, delivering margin and decrease Canadian auto rose Personal personal Slide X% Bank Non-interest year-over-year. bank by year-over-year. forgiveness. quarter, net increased PCL positive profit growth credit coupled lower primarily and Net Personal year-over-year. the increased $X.X for XX expenses, share partially Revenue was card operating volume and adjusted X% of and X%. lower X.X%, Average including $XXX XX% volumes. higher and residential leverage the partially PTPP including deposits higher growth higher and on from billion, margin in credit was $X.X on modification XX% income supporting billion, was income income increased with million, net expansion, increased total X%, XX% by commercial the the up Slide strategic card reflecting credit remains unchanged. earnings reflecting year-over-year mortgage margins segment U.S. and expenses expenses business Absent the net expenses. deposit of X% shown ex-FX. prepayment investments, Business lower customer originations, loan Retail primarily up deposits and

X%. X%. up Personal X% Business by Excluding basis we’ve Net was interest XX, continued environment and were took balance TD the were positive were share our Average in Slide volumes, PPP our year-over-year. loans higher loan margins. XX the declined deposit and deposits, mix On offset market deposits rate on margins, as footprint. as interest of increased program. sequentially sweep reflecting deposit disclosure sweep were business sheet the impact excluding partially deposits X.XX%, loans, up lower up deposits flat margin PPP points X% rising

down including and higher This net include income. by Adjusted integration-related PCL $XX XX XX% to investments. in legal up and was X% sequentially. largely acquisition XX% portfolio, by was U.S. fair in resulted net from million the year-over-year, investments technology was quarter, million, lower interest insurance interest and activity, increased PCL PPP compensation. U.S. supporting an which the weather-related a supporting offset revenue value and year-over-year. including offset contribution higher reflecting of insurance contributed to million, income, The by investments increased transaction the points in the lower discount in percentage and Horizon Management a turn partially of and claims, only provisions claims business net offset increase for cards was of increased Management and resulted margin. employee-related expenses higher lower Total credit Insurance Wealth basis more for decrease as in of XX%, Schwab year’s employee-related similar TD’s $XXX to asset expenses for decrease annualized inflationary in decreased insurance $X business which of million, bank’s million management net expenses reflecting higher point higher The higher a and X.X%, Reported by claims net $XXX share a the were year and liabilities, prior supporting variable impact basis acquisition. an volume income and quarter spend interest approximately of income of driving X reflecting the increased liabilities claims claims strategic Revenue sequentially. offset decrease higher and non-interest PCL events, $XXX growth, up Retail business the favorable costs First partially Please expenses charges reflecting reported trading the from premiums. in a similar by year-over-year, rate, ago, value fees development revenue. expenses fair severe Wealth impact the expenses, Slide XX. reflecting partially fee-based and XX% XX% in lower Non-interest higher revenue investment X%, ratio, costs,

the of in billion technology Wholesale U.S. losses, acquisition recognition the to required impact year-over-year rate XX. Cowen partially now X%, expenses increased of reported over Banking’s impact CETX and from market strategy, the reflecting offset quarter, other loss reflecting the tax X%, in CETX increase X.X% acquisition, of risk RWA Slide compared $X.X capital ratio $XXX lower or of well equity points. capital of risk increased Revenue transaction Adjusted lending reflecting by include higher of Assets from of growth. Please compared net administration risk XX RWA. mitigation a quarter continued sales lower FX, increase and the increase net the partially global and Please points XX% turn million up generation asset both tax strong basis sequentially. $X.X banking, by corporate of decreased assets attributable and in which fourth last items and to related to by Adjusted net for related leverage net this the turn decrease dollar higher offset net was of basis basis was the with increased last to The in to under million, by billion, regulatory from year-over-year, closing partially and impact this $XXX increased $XX year. common $XX points. lower million translation. management for increase First The revenue Wholesale million an market the at a increased to for mainly Slide XX% RWA loss was certain earnings million, in from by non-interest $X.X and hiring of employee-related reflects higher and in Horizon exposures, organic net quarter-over-quarter, depreciation, integration-related Slide Horizon We loss reflecting First the treasury trading XXX revenue, turn the ratio mix an underwriting quarter credit professionals, the reported lower the had quarter quarter. acquisition XX. was billion is the markdowns points. million quarter Adjusted adjusted for quarter $XX ended XX.X%, Tier to Reported acquisition $XX quarter and balance X of under activities offset primarily sheet year. We from the of year-over-year, by by timing a Credit basis issuance million, will was added Schwab ratio partially expenses reflecting Banking net I expenses decreased from increased to up $XXX the published The The reflecting increased XX quarter in basis net The above increase Schwab volatility year-over-year, the commitments. management net higher capital primarily call billion of quarter. an investment minimums. the the was income offset dividend and X% partially Corporate down expenses and offset a interest the higher XX%, investments the charges, underwriting PCL. both capital of XX. provide prior Ajai. which saw contribution and including income this XX% revenue RWA sale was the turn primarily favorable acquisition. CETX closing X% shares, Please of volatility. reported quarter, XX FX or items. sale CETX by risk Relating reflecting common hedge income decreased the an XX to shares exchange interest This volumes loan mitigation CETX with LCR and fourth for Cowen $X reinvestment in by banking, point under the of RWA, volatility portion of gain the X.X% XX CETX. foreign and and points unused The other XXX%, migration. basis PCL rate our to plan. year-over-year. and TD’s was in XX segment trading to basis Market on points costs gains a and

related XX reflecting turn share basis good We quarter-over-quarter and to Canadian net ratios, increase bank’s U.S. $XXX Please Please or Slide million Commercial quarter, recorded Slide Banking PCL of Canadian Corporate and some income. portfolios. in to to and consumer Recall PCLs. Gross quarter-over-quarter, PCL million levels. as $XXX lending and the normalization fully Canadian million normalization that at $XXX XX. PCLs turn do by impaired increased U.S. you, recorded The partners some segment points the XX was consumer losses the well performance. below remind our our of The and U.S. stable pre-pandemic U.S. largely million, corporate partner this bank’s was to Slide impaired by X Thank of $XXX and XX. million, strategic The absorbed turn Kelvin, in our formations Please remained Retail, portfolios. and of quarter-over-quarter remained the increased impact you an afternoon, loan Gross The Personal performance bank’s XX. turn points impaired million card everyone. was provision that both U.S. to cyclically bank’s to for loans credit largely low basis card levels. XX. gross by in provisions of $XXX increased net and points. credit the lending the $XXX across basis PCL segments. increase to Please reflected to Performing presentation reports Slide impaired are credit not

Slide growth, previously overlays release to million points year PCL for performing a economic and to $X.X year credit volume set relating The forecast, performance. impact of release some economic for to our moderately ongoing in XX. aside of impaired by $XXX offset bank’s year basis trajectory X to of smaller XX coverage points billion, performance compared exchange, recovery to The uncertainty higher quarter-over-quarter turn basis the allowance the economic and rate full of was uncertainty. increased foreign the XXXX, normalization higher partially full a and Please deterioration for credit current to credit provisions. PCL reflecting in XXXX. elevated by For The account remains bank’s rate losses allowance due was

credit loans the cyclically impaired let as evidenced gross Now The impaired formations, strong and briefly bank summarize by year. loan me PCLs. gross year impaired low exhibited performance this

While credit have as performance lows. come credit this remained portfolios quarter their normalization strong, we in some saw certain recent off metrics

In and reflecting a risk rates rising persistent of addition, elevated, and increasing risks recession. remain inflation economic the interest

expect we to adequately economic remains continues I as we results may have that, operator, basis the is performance be of well range begin While normalize have a by unfolds. positioned, across diversified to the vary Q&A are now XXXX position, With XX a in and higher products TD geographies. and in we are points, quarter, conclude, strong the to given we XX PCLs provisioned, to To that credit session. broadly ready and business capital trajectory

[Operator you. ahead. from The from Gabriel Dechaine first go Please National Thank Bank is Financial. question Instructions]

Your line is open.

I just actually one here, bank based on your points. NIM, have basis the calculation a couple of all X of questions

top XX huge. had a U.S. bit but Is up what? trading compare or as that might you of of some to they up little you is that I the me the if there? where do adjust a issue segments a house Canada If why bit XX, diversions and funding smaller, I wholesale a at to give pretty the stuff, if Can technical for explanation the the

Kelvin Tran question. that take It’s here. I’ll

trading said, you to as do, NII. it out to we need need adjust So what we for

section. in is There Wholesale NII our a footnote table. trading underneath in the Bank disclosed the number the is actually So MD&A

NIM you you for trading XX loans the a core If of and the to basis get for that also quarter-over-quarter. volume, points for or non-trading adjust

last I What’s in is A closing? expectations, now real shift close to expectation delayed it to first We My guess, guiding to on might or be calculated compare the quarter, close methodology of in question, fiscal Horizon. timing Perfect. ourselves, guess, QX First you there. the expecting were subtle prompting I half.

Hi, Gabe, this is Bharat.

We’re thought in already Gabe? it me, Gabe, can so December, hear was appropriate you we –

Yes, I can.

Alright.

We’re already December. in

that approvals, we out. put timing are will all so And within the don’t get we’ve closing confident the the of we line that but regulatory we control time

advance in Are going of anticipating Is anything? any your having the or taking are a look you your product there they at adjustments mean to up close? – I schedule to make closer

of the not I’m you’re of No, aware anything mentioning. sort

holiday rest thanks, year the good have and and Well, the Alright. of season. a enjoy

as well, holidays Thank you. Happy to Gabe. you

Thank question ahead, go Please from open. your you. is from line Meny Grauman The is next Scotiabank.

I Canada, expansion And in you basis in afternoon. a wondering bigger hit stick or the margin, XX just coming quarters could see to of wanted sequential increases good the margin? U.S. discussion we’ve if Hi, with points we peak think TD margin to XX up in the at

It’s Kelvin here. Hi,

in higher of to be you first to bank, rates rise the all, both rates house, also So top rates. if tractors story I than margins, significant short rates. of expansion of we’ve we total that rates is forward say, margin part because for rising short expect when off on would at favorable repricing the realized, are the seen big are and that A at look the of

So that provided margin a, a the I would turbocharge say, to expansion.

the on have And to anything customer Leo, short so rise the I know Michael the it mix? you balance or really or sheet in forward. And add front do going rates depends on dynamics don’t whether

Michael. to assuming that the the Just this in hold. overall, NIM improve guess, Canadian is see P&C just for – Bank near-term, forward curves and the we we that Personal I expect And

I would think see expansion. the dynamics well expect for further some to are so we us, and lining up

And came Meny, quarter-on-quarter NIM basis XX a very points at on the XX points basis, a year-on-year would in just last for – the basis I quarter strong, X.XX%, on so basis. add, of

investment good As treasury two things, our that. those driving the in Kevin gains margin on obviously, had portfolio. described, expansion, results. driven of deposit have Also, improvement terms in clearly we’ve And some returns

to will we As if begin the to beta with balance medium of as think the I’d increase curve we I the institutional about that say holds. of year, agree clients. expect going look is certainly pricing to forward would power increased there mass we sensitivity, additional affluent, I and Michael, sort in see be the high some net worth continue though term. forward, pricing commercial amongst

would but And gradual over time. see on further expect a so I in to improvement basis NIMs, more

that. on up following just Leo, And

Is from the you’re we’ve right now? haven’t we about the seeing that in banks in that other expected that talking And what have much to increase future? you’re think would expectation rise changed an as betas for I heard as rates. given

But our resiliency that in our alternative Obviously, that reality a do large mass think I the little opportunities. seeing worth is fourth gives bit the search little in client greater affluent own which is some peers. of true. than for I we the search more quarter, I pricing for a us other net is very high generally investment in am and the institutional, there greater yield industry inflection account was level. would dependent, saw checking at more bit say franchise core

that quarters. bit a the over I so little crystallize subsequent would And expect more to

I’ll we’ve rates. declines for as a And then TD talk potential declining some to heard just it in is about And rates? banks exposed broadly, How follow-up, positioning leave there.

Yes.

at it look in say interest I we that. margin that is But somewhat – our would reflected disclosure. net So so

of hike impacting income. net shock a or interest our decline rate rate see would You

is there sensitivity there. So

you. Thank

Paul Thank open. line from you. The your Holden question ahead, is next Please from go CIBC. is

afternoon. Good you. Thank

you point some line some of just and So topped actually, of of you advantage margin? maybe a Is but of I’m doing? sort ask some year question. questioning, protect something continue have out, you exposure, next of within about clearly to upside today, think in would rates if could hedging lock so but the you think that consider going that that Would taking the with different rate that

Yes, Kelvin. you at at we It’s but look both upside to at margin, downside. have that and the look

then break continues one you decline, against hike, if But persistent you would And to go so if on hand, and you. benefit. it be rates lock inflation in, then that

monitor. we a that fine it’s So balance

Got it.

Okay, thank you.

and your I’m mortgages. particularly seeing TD, rate. exposure, for from HELOC in it’s the around on Next But should with about variable guess, of more lately been and in this are variable on curious lot kind I discussion assuming exposure, behavior? respect question is you HELOC of on customers be impacts Canada, rate Is something changes perspective? worried there to or your a also has focusing we What credit a

Ajai. It’s Yes.

of a me sort and little talk I housing. Let start, will broadly around more

outlook from revised You rates. because higher our may housing have downwards we our noticed of macro outlook, have

We are not expecting a crisis.

We that have it’s is HELOC, look I quality whether are COVID. strong. look definitely expecting whether quality variable, that it’s occurred at an unwind of some say would I since it’s But at when rate, fixed of whether gains quality asset when I and across, the

is look in debt there have but equity service scores. of levels. We uptick, look customers So, at distribution charge-offs. at a much it’s And at look formation an yes, we of generally bit homes. how We robust delinquencies,

if quality all don’t Michael, our is strong. add our across something? I books, to you wanted So, know,

to Ajai, I nothing captures else it think and that add.

in ratio that’s curious Just pretty the sneak going points LCR this move. if one am points I big maybe quarter, unusual okay? to X quarter-to-quarter, X increase a points on to not jump Great. in is the it more, see from or X around but

maybe you for So, help unpack us. that can

Yes. in First It’s TD Horizon also the prefunding of and Bank partly for because Wholesale and Securities. transaction

Alright.

Okay. I there. will it you. leave Thank

Capital Doug The Please go you. is next question Thank ahead. from from Markets. Young Desjardins Bank

open. is line Your

Hi. Good afternoon.

Just on is I in Banking. Wholesale Page XX, think it

Looking the are at closing the guess Riaz. strategy. you for investing U.S. dollar interesting, was Cowen the in I a There expense midst that I of in mention in the little of this of just light growth, that is And transaction. fact find

investments further I maybe help thinking make me would U.S. at thought least investments understand you am but until or you this in can what to? onboarded to you I So, of the Because that strategy would incorrectly? relates have Cowen, stop have waited about kind

at was all. acquisition beginning the not dollar a and of announced now, The have has while of been you – then remember August. Cowen the to that Doug, for U.S. strategy the at No, unfolding

on rate And markets put professionals. technology bit So, run global related acquisition to banking, being fairly just of the announced. and that there as individuals, the robust front support a a is individuals office hiring fair well that investment was increased prior of is in both the as

prior taken had the of annualization just mostly it’s So, to. the build place that

year-over-year, I a because of was already more incrementally a been used going And we sequentially, is not doing It’s are form charge I done? to as mean has this you Cowen? that restructuring guess onboard there is this are running? this So, already some guess have I this, the in and risk you

is lot I there verticals as TD of know, is Well, strong is the of where as overlap. lot Cowen think to not compared you strong, a Securities a where

normal the expenses you So, our expense we any as synergies manage when I think didn’t usually announce we that an in But look particular acquired course. to we would know, perspective. from Cowen,

that? expect more looked of a But can Okay. loss Kelvin, to normal there? just to a is of the lots there get the unusual And adjusted then level, that. kind you there underlying we items, go anything mean loss into I than it like is it going loss was normal. corporate, in if lower I unpack last, in so back Should

Sure.

quantify tax million that, this $XXX of you from So, it’s rates. lower benefited about quarter, if And impact. we an

in to And anything or…? that related particular

and mix It’s business unused just losses. tax

have So, items around that quarter-over-quarter. these you bounce

they In larger sometimes Sometimes that positive, are magnitude. of items to this be are quarter, happens negative. they the and just

will I Okay. with leave that. you. Thank

next The question Thank Securities. from Persaud Please go Cormark from you. is Lemar ahead.

Your line is open.

Thanks.

And think quarter. last it’s XXX to I for increase across is Just rates, the your billion billion sensitivity still basis high, I like relatively looks that rates $X.X looking curve. higher $X.X at it increasing in and a interest think point that number

the this sensitivity? in simply are betas you table more why limit deposit And higher considered isn’t going are this in to not deposit in or that hear that sensitivity meaningfully, rising right I so, did in upside? showing up So, betas if rate

Hi. It’s in quarter-over-quarter taken Kelvin. Betas question. And account into in the due NIS to model. as of I beta. that will are is higher take matter the reduction a of that some fact,

next is number, add As rates But less happened. sensitive you things there. have would rise, also sensitivity in There the to hedges and that but it lot a to there hike. are then expires that of it, in are that that so rate

Can U.S. And the suggest growth talk maybe in excess of way what’s X% it less for TD me strong Is to fair mortgage think concern the such that Would was driving maybe it’s when guys stuck the of right are U.S.? just the a we given kind deposit are the that tightening spreads position? be putting you Thanks. the volumes to about in why you up are then there mortgage about me strong reconcile in across then thing Okay. growth such mortgage And industry? the U.S. help one sequential slowing to that spreads out seeing and growth

for Lemar, this is question. Leo. Thanks the

has I right, with last are That, XX% good in Two successful quarter this marketplace. affluent pay coupled business, a strategies that we had correspondent of high-quality second, saw direct contraction mortgage model, year-on-year up relationships. in-store for we strong mortgage be think as origination sharp quarters really into we ‘XX. counteract able will as which And little driving worth total we think the the do the go trend a that most us in volume balances our And been and well high on bit reintroduced attracting so we we You that received some we meant to in net have quarter, been a extremely growth. One, seen has allowed near-term came question that fundamental grew remain the basis. an strong. the think well. But part, balance a we moderate And have growth. mortgage will mass decline downs to

overall margins of the relatively stable. margins, terms been In have

a competition outsized point. that’s price at seeing So, we not are this

that volumes on. the putting we So, we like are

will do say we And would thing. I that. to so continue final one

the We risk That’s spreads have mortgage to that seeing like. we in We be also our to it, with that’s a and bit us the are portfolio build we ability out associated mortgage portfolio. selling our able active like book giving more. less terms been little of

been it’s So, all certainly of in mortgage think you I put our portfolio growth. and those together, factors terms positive

I there. will leave Thanks. it

BMO from ahead. is question next Movahedi Markets. Please The go Sohrab Capital you. Thank from

Your open. is line

you. Thank

total clarification kind XX% bank back Just do Kelvin, throughout first. effective you one the to XX%, tax go think of quick rate will ‘XX? that

it way. put this Let’s

This quarter is lower than normal.

normal seven what eight you expect quarters be? or would be the would And consistent last quarter with to

Yes.

any in provide clarify, X% And target acquired – you business? or Can to the XXXX, you. of the XXXX. existing XX% posts guess, as I that versus attribute Kelvin, to maybe much exceeded exceeded Thank growth just you growth EPS how met just being in guide would or Bharat then to

to no because are talked have rates, that bank, the of this to P&L, got which acquisitions overall, on does lot to they as acquisitions. interest about precisely we But a of you exactly close. call Hard it have got as timing think it there to – TD’s split is you when certainty what you when the and

bank the course, would growth it say So, that points going many those, organic are good ‘XX. year. so will I continue to And I has do next expect posted very into the and years, plus over of

out complex potential hand, we Geopolitical operating an a are And there the are of in economic environment. the for slowdown. course, tensions there. is On other

based feel So, provided, the that on today, I meet those I have balance, but have said Sohrab in the been will of then we be is just how made. way we know it exceed it or shift that we what If the the could my guidance we on course, remarks, guidance points – we turns And change. than of that’s to any about have different dramatically one it. the out thinking numbers will medium-term

absent No, I growth, acquisitions. would between wanted TD Thank speak, what so have just indigenous you. been appreciate distinguish of that. kind to to I the

you. Thank

Kim from Thank Ho you. Joo from question Suisse. is Please Credit go next The ahead.

line open. Your is

my Thank question. for and taking Hi. you thanks

Retail. that the wanted at looking expenses in that’s am basis. employees that XX% U.S. over to up the time. looking and stick total I X% year-on-year about And an Just on am segment, And adjusted also I up with at

FTE that of speak to of whether you the was if due up can how inflation this And of how much Thank we you And also to could about here? increase in pace quarter segment? wondering the you. hiring from see so from and climb kind I continue the just expenses to am that think in business number

Joo. ranks. describe just expenses, retail factors, is just The And a Thank and have investing. for other you significant did areas the up the in in of of that making very in added result of very portion and up a you terms me Both wage advisory ground. two inflationary of some pandemic rates. to higher about we XX%. question, that attrition Part Essentially it been our one we was context, of terms to deliberate some One, lost bit Maybe let give but wealth pressures. of little core expenses, much investment spending. for very

shared back ranks. a – in very levels out been level. also did But we we staffing what the to so we bring earlier building wealth focused able hire have consistent be pre-pandemic to year, I And with to sort advisory of our in

of that was another so investment. And area

national we services employees. the under banking because also that focused expenses area. have platform, our our cards necessarily teams, building did – And that actual wanted been in rendering verticals just did that and to that greater were in we we then to We we FTE scale and our not very did servicing XXX cards upscale our commercial so which our is our our we to we numbers, in something amounted that And clients. repatriate overall would investing specialty finally, on influenced mid-market have

categories. So, those are some of the big

investing technology digital addition and been focused In we on our cards from platform. a to in in next-generation very have that, also investing standpoint,

the of investing areas we have some are those in. been that So,

quite comfortable that continue are allow growth forward. will us to going We revenue strong to maintain those a

how – us quarters. I be we moderate growth the Just imagine question expense going do would over would your follow-up think to going is look I to the rate of subsequent about expect expenses forward,

deliberately our we leverage so focus. mindful are operating of And

from very is loan wanted That’s to growth Wholesale And you. Thank XX% segment. The Banking helpful. last I sequentially. for go just back that segment up me. to one one

forward? other should there? of sectors? drove going drove the we looks So, from and know growth It of results like how come kind about let Wondering if that sectors what could financial wondering the the some perhaps you what think me or

Joe, lending, growth prime book, all there in businesses securitized in businesses. that’s a Look, it’s our whether attractive Riaz. really has in our of corporate our really and been lending parts

we has really as in and clients. bit bit. depending been with quickly economic change widely a doing the think you a it to out that as mean circumstances. But add I And continue know, to – rate with would growth can business environment quite that our for obviously, the it’s happy clients we So, we can moderate expect be very been deals slower, that the on are have I businesses. spread I that as

pretty growth in ‘XX the good So, about deliver able I the that to feel board. we across were

Thank you.

ahead. is from you. Rizvanovic go from KBW Thank The Research. next Mike question Please

line Your open. is

updating on in amortization remaining for the Probably for your thanks first disclosure mortgage Good Thanks. And book. off, Michael. one afternoon.

what your wondering quarter have portion a book So, a referencing you how XX you for you understanding Is there am payment. of struggle have in a some you probably even. you leeway trying could years any that that renew higher in I is am I So, am of how make than of much greater have constraint I that And of legal got to get I may to a that’s amortization. face face, XX% sort is terms a bit terms you renewing or much am be when sort of there may of guessing the the do above XX%, amortization? regulatory of customers better XX% a have above potentially of ones your and constraints

a did the most the first the and And So, obligations part you to contractual we as payment of did we for customer. are obligation the right, opposed update current haven’t changed for trends – all, the table for reflect customer. to contractual

they may term, even at if currently XX-year a still they have do is customer term. amortizing a if a so be a XX-year rate, And lower

we reset or moment for, it, we re-underwrite the are let’s a On we required a amortization, XX-year so them that generally you renewal reset to payment origination over the amortize And reflect can actually loan. to from possibly for, we underwrite XX-year renewal initial new term. come look case-by-case when what’s the but re-underwrite or will the are options comes, call term either when looking basically, order But reset comes, look to the the term either term. a there, longer to the terms, again, basis, at generally the contractual to in

The watching fixed The only we very, our comment books Ajai. like would – very closely. reset rate is in risk variable it’s add are the additional only across I

of what done stress what at X%, and lot have a We happens testing happens at X%.

allowance. already our We I prudential have is would PCL formations, share of thought that and lot actually into that. estimated I a potential thinking just incorporated

That’s Okay. helpful.

me limitation So, real if but regulators real I no you leeway. to would that wrong, anything it’s Correct I do have am There don’t have. BXX. no fair in see the that limitation. say is

XX-year any of customers, the for amortization aim will you really your sort work original with disruption am to guessing period, but or in the in try – you limit and I book? your that So,

is with reflect loan the the an Right. basis. under term. a contractual aside amortization obligation XX generally payment someone’s there they customers resets to terms, years. the today, case-by-case if are our We that renews, the expectation work initial But when that slow And [ph] on that aming the

Okay. Thanks.

we And Scott Thank Please Canaccord ahead. from go last question you. a have from Chan Genuity.

open. line is Your

Thank you.

first, question Ajai. just So, quick a clarification

total? a On XX target the bps – you bps, talked PCL to was XX about XXXX, a for ratio that

total, is part that look at Yes, like and do be expect, go you I ‘XX, large impaired. a for but of will example, that

Got it.

question have your reason Okay. think And strong. did they acquisitions really Bharat. the then talk raise to the TD increase, very strong organic outlook, about the got the once a for dividend amount? maybe for last like And this X% bar year it obviously, set now does and And a then you I dividend for And signals the increase coming. pre-pandemic?

embedded are should etcetera. with curve And our we or the with are exceed change we could feel well. change. asked year. earlier, forward for rate outlined that about dramatically, And question. they change, they economic in about the meet the rightly etcetera, quite we But that out, acquisitions, momentum Thanks increases headwinds are environment, the how I me pointed Thanks. to be we when further next the somebody as there target. Things able with as have, Scott feeling you

think we what So, perspective. dividends it dividends, view not overall with our look the happen. the future bank. that we we would that on perspective. increase this done Generally, like to of On what want have every very It’s hard today happy of I have quarter We look speculate But the it we we with while. earnings depends to and from at want pointed what announced from comfortable long-term out. it about and little the look events the every to circumstance. earlier. or very don’t We may that power environment like a may on We to at quarter. think is to with or But done at feel don’t

you much. Fair very enough. Thank

further registered this There you. the return to at I back questions are Thank time. Mr. call Masrani. no will

very to deliver strong the I year very progress for make any including to quarter They see world. our joining don’t thank take again, it’s to once terrific a holidays Thanks all And we to and And Thank turned how to much you, this very that I am consistent TD, today. XX the like happy out. thank stakeholders, about for bankers shareholders. talk basis. and with of all around of bank you to again, continue continues And on you you. days. holidays, our I a our happy from operator all has us before if the will in TD the would, see opportunity

at lines time you. conference The has Thank thank now Please you participation. and this ended. we for disconnect your your