Financial Performance and Outlook
Endnotes on Slides 34-35
Slide 34
1. TD's share of net income in US$ is the corresponding C$ net income contribution of Schwab to the U.S. Retail segment included in the Bank's
Report to Shareholders (www.td.com/investor) for the relevant quarters, divided by the average FX rate. For additional information, please see
the respective earnings release of Schwab available at https://www.aboutschwab.com/investor-relations.
2.
Please refer to Slide 4, Endnote 1.
3. Non-GAAP net income is a non-GAAP financial measure as defined by SEC Regulation G. Schwab defines non-GAAP net income as net income
adjusted to remove the after-tax effect of amortization of acquired intangible assets and acquisition and integration-related expenses. Schwab
considers non-GAAP net income as an important measure of its financial performance because it excludes certain items that may not be
indicative of Schwab's core operating results and business outlook and may be useful in evaluating the operating performance of the business
and facilitating a meaningful comparison of Schwab's results in the current period to those in prior and future periods. Amortization of acquired
intangible assets is excluded because management does not believe it is indicative of Schwab's underlying business performance. Non-GAAP
net income should be considered in addition to, rather than as a substitute for, GAAP net income.
Slide 35
1. The Bank's share of Schwab's earnings is reported with a one-month lag.
2. Includes the net impact of internal management adjustments which are reclassified to other reporting lines in the Corporate segment.
3. The after-tax amounts for amortization of acquired intangibles, share of restructuring charges from investment in Schwab, and the Bank's share
of acquisition and integration-related charges associated with Schwab's acquisition of TD Ameritrade are recorded in the Corporate segment
equity pickup, which is shown on page 14 of the Bank's Q4 2023 Supplementary Financial Information package on a reported basis only.
4. The Bank's own integration costs related to the Schwab transaction this quarter ($18MM pre-tax this quarter) are reported as non-interest
expenses in the Corporate segment. In the 2023 MD&A (Table 13), acquisition and integration costs of $31MM (pre-tax) include the Bank's share
of Schwab's costs and the Bank's own integration costs.
5.
Please refer to Slide 4, Endnote 1.
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