Financial Performance and Outlook

U.S. Strategic Card Portfolio: Accounting Illustrative Example Values below are shown for illustrative purposes only. The percent share is representative of the agreements with the retailer card partners, but the exact split differs by partner. Illustrative Example Credit Card Portfolio Revenue PCL Risk-Adjusted Profit $MM 1,000 150 (50) 100 Mechanics: TD collects revenue and establishes PCL, then pays partners their share of risk-adjusted profit as determined by the agreement ('payment' in table below). P&L Presentation ($MM) Illustrative Example: Assuming 80% retailer share / 20% TD share Total Bank Corporate U.S. Retail Revenue Gross at 100% = 150 Net at 20% = 30 Net at 80% = 120 PCL Gross at 100% = (50) Net at 20% (10) = Non-Interest Expense Net Income Payment at 80% = (80) Net at 20% = 20 Net at 80% (40) Payment at 80% = (80) Net at 20% = 20 Note: The Bank's U.S. strategic cards portfolio comprises agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and provisions for credit losses related to these portfolios in the Bank's Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate reported Net income (loss). The Net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements. TD 27

View entire presentation