----------------------------------------------------------------------- Additional information relating to the Bank is on the Bank's website http://www.td.com, as well as on SEDAR at http://www.sedar.com. As in prior quarters, this document was reviewed by the Bank's Audit Committee and, prior to its release, was approved by the Bank's Board of Directors, on the Audit Committee's recommendation. HOW WE PERFORMED How the Bank Reports The Bank's financial results, as presented on pages 13 to 17 of this News Release, are prepared in accordance with Canadian generally accepted accounting principles (GAAP). The Bank refers to results prepared in accordance with GAAP as the "reported basis" or "reported". The Bank also utilizes earnings before amortization of intangibles to assess each of its businesses and to measure overall Bank performance. In addition, this quarter the Bank has disclosed the Bank's net income and earnings per share before amortization of intangibles and items of note in order to better reflect how management measures the performance of the Bank. The items of note are listed in the tables below. To arrive at earnings before amortization of intangibles, the Bank removes amortization of intangibles from reported basis earnings. To arrive at earnings before amortization of intangibles and items of note, the Bank removes items of note from earnings before amortization of intangibles. The Bank's intangible amortization of assets relates to the TD Banknorth acquisition in March 2005 and the Canada Trust acquisition in fiscal 2000. The items of note relate to items which management does not believe are indicative of underlying business performance. Consequently, the Bank believes that earnings before amortization of intangibles and as applicable, items of note provides the reader with an understanding of how management views the the Bank's performance. As explained, earnings before amortization of intangibles and as applicable, items of note are different from reported results determined in accordance with GAAP. Earnings before amortization of intangibles and items of note and related terms used in this report are not defined terms under GAAP, and therefore may not be comparable to similar terms used by other issuers. The tables below provides a reconciliation between the Bank's earnings before amortization of intangibles and items of note and its reported results. Reconciliation of Net Income before Amortization of Intangibles and Items of Note to Reported Results(1) (unaudited) ------------------------------------------------------------------------- For the three For the twelve months ended months ended(4)---------------------------------------- Oct. 31 Oct. 31 Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Net interest income$ 1,654 $ 1,435 $ 6,021 $ 5,773 Provision for (reversal of) credit losses 94 82 319 336 Other income1,5391,1356,0154,961 Non-interest expenses 2,0621,7627,8257,081 ------------------------------------------------------------------------- Income before provision for income taxes and non-controlling interest 1,037 7263,8923,317 Provision for income taxes 219 129 899 832 Non-controlling interest 53 - 132 - ------------------------------------------------------------------------- Income before amortization of intangibles and items of note 765 5972,8612,485 Items of note impacting income, net of income taxes Tax charge related to reorganizations (138) - (163) - Other tax items68 - 98 - Loss on structured derivative portfolios (70) - (100) - Restructuring charge(4) - (29) - Non-core portfolio loan loss recoveries (sectoral related)60 101 127 426 General allowance release - - 23 43 Litigation charge - - (238)(195) Preferred share redemption (13) - (13) - Hedging impact due to AcG-13 7 (11) 17 (50) ------------------------------------------------------------------------- Net income before amortization of intangibles 675 6872,5832,709 Amortization of intangibles, net of income taxes (86) (92)(354)(477) ------------------------------------------------------------------------- Net income available to common shareholders - reported basis $ 589 $ 595 $ 2,229 $ 2,232-------------------------------------------------------------------------------- Reconciliation of Earnings Per Share (EPS) before Amortization of Intangibles and Items of Note to Reported Results(2) (unaudited) ------------------------------------------------------------------------- (Canadian dollars) ------------------------------------------------------------------------- Basic - reported basis $ .83 $ .91 $ 3.22 $ 3.41 ------------------------------------------------------------------------- Diluted - reported basis.82 .90 3.20 3.39 Items of note impacting income (as above) .12 (.13) .40 (.34) Amortization of intangibles .12 .14 .51 .72 Item of note impacting EPS- - .03(3) - ------------------------------------------------------------------------- Diluted - before amortization of intangibles and items of note $ 1.06 $ .91 $ 4.14 $ 3.77 ------------------------------------------------------------------------- (1) Certain comparative amounts have been restated. (2) Earnings per share (EPS) is computed by dividing income by the weighted average number of shares outstanding during the period. As a result, the sum of the quarterly EPS figures may not equal year to date EPS. (3) Adjusting for the impact of TD Banknorth earnings in the second quarter 2005, due to the one month lag between fiscal quarter ends. Only one month of TD Banknorth earnings were included in the second quarter while two months of funding costs and share issuance impacted the quarter. (4) Items of note in addition to those included in the fourth quarter of 2005 and 2004 are as follows: second quarter 2005 - $25 million related to an internal tax reorganization; third quarter 2005 - $30 million tax benefit resulting from a higher tax rate being applied to the future tax asset related to specific provisions; third quarter 2005 - $30 million loss related to the exit of a certain structured derivative portfolio; second quarter 2005 - $15 million and third quarter 2005 - $10 million related to restructuring charges of the global structured products businesses; non-core portfolio loan loss recoveries (sectoral related), first quarter 2005 and 2004 - $20 million and $130 million, second quarter 2005 and 2004 - $24 million and $130 million, third quarter 2005 and 2004 - $23 million and $65 million; first quarter 2005 - $23 million relating to general allowance release; third quarter 2005 - $238 million and second quarter 2004 - $195 million contingent litigation reserve relating to Enron; hedging impact due to AcG-13, first quarter 2005 and 2004 - $11 million and $21 million, second quarter 2005 and 2004 - ($33) million and $16 million, third quarter 2005 and 2004 - $12 million and $2 million. Performance Summary Net income, on a reported basis, was $589 million for the fourth quarter, compared with $595 million in the same quarter last year. Reported basic earnings per share were $.83, compared with $.91 in the same quarter last year. Reported diluted earnings per share were $.82 for the fourth quarter, compared with $.90 in the same quarter last year. Reported return on total common equity, on an annualized basis was 14.8%, compared with 19.1% in the same quarter last year. Net income before amortization of intangibles and items of note (see page 4) for the fourth quarter was $765 million, compared with $597 million in the same quarter last year. Diluted earnings per share before amortization of intangibles and items of note were $1.06 for the quarter, compared with $.91 in the same quarter last year. Return on total common equity before amortization of intangibles and items of note, on an annualized basis was 19.3% for the quarter as compared with 19.2% in the same quarter last year. Economic Profit and Return on Invested Capital The Bank utilizes economic profit as a tool to measure shareholder value creation. Economic profit is net income before amortization of intangibles less a charge for average invested capital. Average invested capital is equal to average common equity for the period plus the average cumulative after-tax goodwill and intangible assets amortized as of the reporting date. The rate used in the charge for capital is the equity cost of capital calculated using the capital asset pricing model. The charge represents an assumed minimum return required by common shareholders on the Bank's invested capital. The Bank's goal is to achieve positive and growing economic profit. Return on invested capital (ROIC) is net income before amortization of intangibles divided by average invested capital. ROIC is a variation on the economic profit measure that is useful in comparison to the equity cost of capital. Both ROIC and the cost of capital are percentage rates, while economic profit is a dollar measure. When ROIC exceeds the equity cost of capital, economic profit is positive. The Bank's goal is to maximize economic profit by achieving ROIC that exceeds the equity cost of capital. Economic profit and ROIC are not defined terms under GAAP, and therefore may not be comparable to similar terms used by other issuers. The following table reconciles between the Bank's economic profit, return on invested capital and net income before amortization of intangibles. Earnings before amortization of intangibles and related terms are discussed in the "How the Bank Reports" section. Reconciliation of Economic Profit, Return on Invested Capital and Net Income before Amortization of Intangibles ------------------------------------------------------------------------- For the three For the twelve months ended months ended---------------------------------------- Oct. 31 Oct. 31 Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Average common equity $ 15,755 $ 12,392 $ 14,600 $ 12,050 Average cumulative goodwill/ intangible assets amortized 3,3482,9913,2132,834 ------------------------------------------------------------------------- Average invested capital$ 19,103 $ 15,383 $ 17,813 $ 14,884 Rate charged for invested capital 10.1%10.7%10.1%10.7% ------------------------------------------------------------------------- Charge for invested capital (486)(413) (1,799) (1,593) Net income before amortization of intangibles 675 6872,5832,709 ------------------------------------------------------------------------- Economic profit $ 189 $ 274 $ 784 $ 1,116---------------------------------------- Return on invested capital 14.0%17.8%14.5%18.2%---------------------------------------- Return on total common equity - reported basis 14.8%19.1%15.3%18.5%---------------------------------------- Net Interest Income Net interest income on a reported basis was $1,641 million for the fourth quarter, an increase of $206 million compared with the same quarter last year. The increase was a result of the inclusion of TD Banknorth results, which reported net interest income of $298 million. Net interest income in Wealth Management's Discount Brokerage operations also increased due to growth in deposit spreads and margin balances. There was also increased net interest income in Canadian Personal and Commercial Banking due to volume growth across most banking products, particularly in business deposits, real estate secured lending, and credit cards. Wholesale Banking experienced reduced trading-related net interest income within the U.S. dollar equity businesses largely due to increases in U.S. short term interest rates. Net interest income also decreased in the Corporate Segment due to interest earned on income tax refunds in the prior year. Other Income Other income, on a reported basis was $1,442 million for the fourth quarter, an increase of $324 million compared with the same quarter last year. $119 million of this increase was attributable to TD Banknorth. Investment and securities services revenues increased by $123 million compared with the same quarter last year. Self-directed brokerage fees increased by $19 million compared with the same quarter last year due to an increase in trading volumes. Average trades per day increased by 28% to 106,000 compared with 83,000 in the same quarter last year. This was partially offset by a decline in commissions per trade and the impact of foreign exchange in TD Waterhouse U.S.A.. Mutual fund management fees and investment management fees also increased by $13 million and $20 million respectively, in the same quarter last year due to an increase in assets under management. Capital market fee revenue (which includes revenues from mergers and acquisitions, underwriting and equity sales and trading) increased by $46 million mainly due to an increase in the equity underwriting business and increased equity trading commissions. The Bank reported a trading loss of $88 million compared with a loss of $75 million in the same quarter last year. Trading-related income (which is the total of trading income reported in other income and net interest income on trading positions reported in net interest income) decreased by $114 million compared with the same quarter last year primarily due to a $107 million loss recorded in the fourth quarter due to a reduction in the estimated value and the exit of certain structured derivatives portfolios in connection with the repositioning of the global structured products businesses. Net investment securities gains (losses) increased by $32 million compared with the same quarter last year. The Bank also recognized income of $10 million in the current quarter, related to derivatives not afforded hedge accounting as a result of the adoption of the hedging relationships accounting guideline (AcG-13). Insurance revenues, net of claims, increased by $35 million compared with the same quarter last year due to the inclusion of results from the TD Banknorth acquisition, organic volume growth and a slightly lower claims ratio. Card services increased by $65 million compared to the same quarter last year due to the inclusion of results from TD Banknorth, increased volume and adjustments for reward programs included in prior year results. Service charges also increased by $49 million compared with the same quarter last year mainly due to the inclusion of results from TD Banknorth. Securitization income increased by $38 million due to higher average levels of securitized assets. Provision for (Reversal of) Credit Losses In the fourth quarter, the Bank recorded a reversal of credit losses of $15 million, compared with a reversal of $73 million in the same quarter last year. The reversal was a result of a $109 million recovery in the non-core lending portfolio for amounts previously provided for under sectoral provisions. This recovery was largely offset by provisions for credit losses in the normal course of business, mainly attributable to Canadian Personal and Commercial Banking which reported a $97 million provision (before the effect of securitizations). U.S. Personal and Commercial Banking reported a provision of $7 million during the quarter. No credit losses were experienced in the Wholesale Banking credit portfolio during the quarter. Non-Interest Expenses On a reported basis, expenses for the fourth quarter were $2,203 million, an increase of $299 million from $1,904 million in the same quarter last year. The increase in expenses was largely due to the inclusion of results from the TD Banknorth acquisition, which contributed $216 million. Expenses also increased in Wholesale Banking, partially as a result of higher variable compensation costs and higher payroll taxes. Canadian Personal and Commercial Banking also contributed to the expense increase, mainly due to increased employee compensation, marketing, and investments in systems development and infrastructure. Expenses increased in Wealth Management due to an increase in compensation costs in the advisory businesses, higher mutual fund sales commissions, driven by higher assets under management and higher mutual funds marketing costs, partially offset by the impact of foreign exchange in TD Waterhouse U.S.A.. These increases were partially offset by a $54 million litigation accrual last year that did not recur this quarter in Corporate. The impact of amortization of other intangibles on the Bank's reported total expenses before amortization of intangibles was $135 million for the fourth quarter, compared with $142 million in the same quarter last year. Total expenses before the amortization of intangibles in the fourth quarter were $2,068 million compared to $1,762 million in the same quarter last year. Taxes The Bank's effective tax rate, on a reported basis, was 28.3% for the fourth quarter, compared with 17.6% in the same quarter last year. The change in the effective tax rates is primarily related to the following items: ------------------------------------------------------------------------- For the three months ended---------------------------------------- Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- Income taxes at Canadian statutory income tax rate - before amortization of intangibles $ 36135.0% $ 30335.1% Increase (decrease) resulting from: Dividends received (61)(6.0) (71)(8.2) Rate differentials o nternational operations (53)(5.1) (78)(9.0) Internal tax reorganizations 138 13.4 8 .9 Future federal and provincia ax rate increases- - - - Federal large corporations tax - - 3 .3 Other - net (83)(8.0) 12 1.4 ------------------------------------------------------------------------- Provision for income taxes and effective income tax rate - before amortization of intangibles $ 30229.3% $ 17720.5% Tax effect - amortization of intangibles (49)(1.0) (50)(2.9)---------------------------------------- Provision for income taxes and effective income tax rate - reported basis $ 25328.3% $ 12717.6%-------------------------------------------------------------------------------- ------------------------------------------------------------------------- For the twelve months ended---------------------------------------- Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- Income taxes at Canadian statutory income tax rate - before amortization of intangibles $ 1,26435.0% $ 1,28535.1% Increase (decrease) resulting from: Dividends received (232)(6.5)(205)(5.6) Rate differentials o nternational operations (215)(6.0)(215)(5.8) Internal tax reorganizations 163 4.5 8 .2 Future federal and provincia ax rate increases- - (18) (.5) Federal large corporations tax 9 .3 12 .3 Other - net (98)(2.6) 85 2.3 ------------------------------------------------------------------------- Provision for income taxes and effective income tax rate - before amortization of intangibles $ 89124.7% $ 95226.0% Tax effect - amortization of intangibles (192)(1.9)(149) .5---------------------------------------- Provision for income taxes and effective income tax rate - reported basis $ 69922.8% $ 80326.5%-------------------------------------------------------------------------------- Certain comparative amounts have been restated. The provision for income taxes for the fourth quarter includes a $138 million tax expense relating to TD Waterhouse. Certain steps have been taken to reorganize the TD Waterhouse group of companies which precedes the transaction with Ameritrade. These steps have been essentially completed in fiscal 2005. The provision for income taxes also includes favourable tax items of $68 million, which include the impact of a recent court decision. BALANCE SHEET Total assets were $365 billion at the end of the fourth quarter, $54 billion higher than October 31, 2004. The increase in assets was primarily driven by the acquisition of TD Banknorth which contributed $33 billion of assets. Personal loans, including securitizations, increased by $15 billion of which $7 billion was a result of TD Banknorth. Growth in personal loans was also a result of strong growth in real estate secured lending volumes within Canadian Personal and Commercial Banking. At the end of the quarter, residential mortgages, including securitizations, increased by $4 billion and business and government loans increased by $13 billion compared with October 31, 2004, primarily as a result of the TD Banknorth acquisition. Increased positions in securities represented $10 billion of the increase in assets, of which TD Banknorth contributed $5 billion. Organic growth in investment securities was partly driven by an increase in mortgage-backed securities. Bank-originated securitized assets not included on the balance sheet amounted to $24 billion, compared with $20 billion as at October 31, 2004. Total deposits were $247 billion at the end of the fourth quarter, an increase of $40 billion compared with October 31, 2004. This increase was largely driven by the addition of TD Banknorth which contributed $26 billion of the increase. Wholesale deposits increased by $3 billion, compared with October 31, 2004, mainly due to funding a higher level of assets within Wholesale Banking. Other business and government deposits increased by $17 billion and personal term and non-term deposits increased by $7 billion and $14 billion respectively, primarily as a result of the TD Banknorth acquisition. The Bank enters into structured transactions on behalf of clients which results in assets recorded on the Bank's Consolidated Balance Sheet for which market risk has been transferred to third parties via total return swaps. As at October 31, 2005, assets under such arrangements amounted to $5 billion, unchanged from October 31, 2004. The Bank also acquires market risk on certain assets via total return swaps, without acquiring the cash instruments directly. Assets under such arrangements amounted to $14 billion as at October 31, 2005 unchanged from October 31, 2004. Market risk for all such positions is tracked and monitored, and regulatory market risk capital is maintained. SELECTED CONSOLIDATED BALANCE SHEET ITEMS ------------------------------------------------------------------------- As atAs at Oct. 31 Oct. 312005 2004---------------------------------------- TDBF xcludingTDBFGTDBFG TD TD Consol- Consol- (millions of Canadian dollars) Banknorth Banknorth idated idated ------------------------------------------------------------------------- Securities $102,833 $ 5,263 $108,096 $ 98,280 Securities purchased under reverse repurchase agreements 26,375 - 26,375 21,888 Loans (net of allowance for credit losses)129,347 22,896 152,243 123,924 Deposits 220,926 26,055 246,981 206,893 ------------------------------------------------------------------------- MANAGING RISK Interest Rate Risk The objective of interest rate risk management for the non-trading portfolio is to ensure stable and predictable earnings are realized over time. In this context, the Bank has adopted a disciplined hedging approach to profitability management for its asset and liability positions including a modeled maturity profile for non-rate sensitive assets, liabilities and equity. Key aspects of this approach are: - minimizing the impact of interest rate risk on net interest income and economic value within Canadian Personal and Commercial Banking; and - measuring the contribution of each product on a risk adjusted, fully-hedged basis, including the impact of financial options granted to customers. The Bank uses derivative financial instruments, wholesale instruments and other capital market alternatives and, less frequently, product pricing strategies to manage interest rate risk. As at October 31, 2005, an immediate and sustained 100 basis point increase in rates would have decreased the economic value of shareholders' equity by $36 million or .2% after-tax, excluding the impact of the TD Banknorth. Liquidity Risk The Bank holds a sufficient amount of liquidity to fund its obligations as they come due under normal operating conditions as well as under a base case stress scenario that defines the minimum amount of liquidity that must be held at all times. The surplus liquid asset position is defined as total available liquid assets less the Bank's total maturing wholesale funding, potential non-wholesale deposit run-off and contingent liabilities, measured at a number of points in time up to and including 90 days forward. As at October 31, 2005, the Bank's consolidated surplus liquid asset position, on a cumulative basis, up to 90 days forward was $23.6 billion, compared with a consolidated surplus liquid asset position of $18.8 billion on October 31, 2004. The Bank ensures that funding obligations are fulfilled by managing its cash flows and holding highly liquid assets that can be readily converted into cash. The Bank manages liquidity on a global basis, ensuring the prudent management of liquidity risk in all its operations. In addition to a large base of stable retail and commercial deposits, the Bank has an active wholesale funding program including asset securitization. This funding is highly diversified as to source, type, currency and geographical location. Market Risk The Bank manages market risk in its trading books by using several key controls. The Bank's market risk policy sets out detailed limits for each trading business, including Value at Risk (VaR), stress test, stop loss, and sensitivity to various market risk factors. Policy controls are augmented through active oversight by independent market risk staff and frequent management reporting. VaR is a statistical loss threshold which should not be exceeded on average more than once in 100 days. It is also the basis for regulatory capital for market risk. The following table presents average and end-of-quarter general market risk VaR usage for the three and twelve months period ended October 31, 2005, as well as the fiscal 2005 average. For the three months and year ended October 31, 2005, net daily capital markets revenues were positive for 80.3% and 87.0% of the trading days, respectively. Losses exceeded the Bank's statistically predicted VAR on one day in the fourth quarter due to a loss that was incurred on certain structured derivative portfolios in connection with repositioning the Bank's global structured products businesses. Value at Risk Usage - Wholesale Banking ------------------------------------------------------------------------- For the three For the twelve months ended months ended---------------------------------------- Oct. 31, Oct. 31, Oct. 31, Oct. 31,2005 2005 2005 2004 (millions of Canadian dollars) As at Average Average Average ------------------------------------------------------------------------- Interest rate risk $ 7.3 $ 8.0 $ 8.0 $ 9.1 Equity risk 5.5 5.4 5.4 5.3 Foreign exchange risk 1.9 3.5 2.8 2.6 Commodity risk .8 .8 .8 .8 Diversification effect (4.8)(7.4)(7.3)(6.9) ------------------------------------------------------------------------- General Market Value at Risk $ 10.7 $ 10.3 $ 9.7 $ 10.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPITAL The Bank's capital ratios are calculated using the guidelines of the Office of the Superintendent of Financial Institutions (OSFI). The Bank continues to hold sufficient capital levels to ensure that flexibility is maintained to grow operations, both organically and through strategic acquisitions. The strong capital ratios are the result of the Bank's internal capital generation, monitoring of asset growth and periodic issuance of capital generating securities. As at October 31, 2005, the Bank's Tier 1 capital ratio was 10.1% compared with 12.6% at October 31, 2004. The decline is attributable to a $30 billion increase in risk-weighted assets that was primarily driven by the acquisition of TD Banknorth. The Bank's overall Tier 1 capital was up $.5 billion compared with October 31, 2004. Regulatory Capital ------------------------------------------------------------------------- As atAs at Oct. 31, Oct. 31, (billions of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- Tier 1 capital$ 13.1 $ 12.6 Tier 1 capital ratio 10.1%12.6% Total capital $ 17.2 $ 16.9 Total capital ratio 13.2%16.9% Risk weighted assets $ 130.0 $ 100.3 ------------------------------------------------------------------------- BASIS OF PREPARATION The Bank's unaudited consolidated financial results, as presented on pages 13 to 17 of this News Release, have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). However, certain additional disclosures required by GAAP have not been presented in this document. These consolidated financial results should be read in conjunction with the Bank's audited consolidated financial statements for the year ended October 31, 2004. The accounting policies used in the preparation of these consolidated financial results are consistent with those used in the Bank's October 31, 2004 audited consolidated financial statements with the exception of Liabilities for Preferred Shares and Capital Trust Securities and Consolidation of Variable Interest Entities as noted below. Liabilities for Preferred Shares and Capital Trust Securities As of November 1, 2004, the Bank adopted the Canadian Institute of Chartered Accountants (CICA) amendments to its accounting standard on financial instruments - disclosure and presentation on a retroactive basis with restatement of prior periods. As a result of these amendments, the Bank was required to classify its existing preferred shares totaling $1,310 million and innovative capital structures totaling $900 million, as at October 31, 2004, as liabilities and their corresponding distributions as interest expense. Earnings available to common shareholders and earnings per share amounts are unaffected for all prior periods. The table below shows the reduction in net interest income. Net income before non-controlling interest prior to restatement was also reduced by the same amounts each period. Net income available to common shareholders is unaffected as the preferred dividends and non-controlling interest from the innovative capital structures were already deducted from income available to common shareholders in prior periods. For regulatory capital purposes, the existing capital instruments of the Bank have been grandfathered by the Superintendent of Financial Institutions Canada, and the Bank's capital ratios are unaffected. ------------------------------------------------------------------------- For the three For the twelve months ended months ended---------------------------------------- Oct. 31 Oct. 31 Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Net interest income - prior to restatement $ 1,688 $ 1,475 $ 6,155 $ 5,943 Less: Preferred dividends30 17 79 78 Non-controlling interest in innovative capital structures 17 23 68 92 ------------------------------------------------------------------------- Net interest income - restated $ 1,641 $ 1,435 $ 6,008 $ 5,773-------------------------------------------------------------------------------- Consolidation of Variable Interest Entities As of November 1, 2004, the Bank prospectively adopted the CICA accounting guideline on the consolidation of variable interest entities (VIEs). VIEs are entities in which the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinate financial support provided by any parties, including equity investors. The Bank has identified VIEs that it has an interest in, determined whether it is the primary beneficiary of such entities and if so, consolidated them. The primary impact of adopting the revised guideline is that the Bank no longer consolidates one of its innovative capital structures - TD Capital Trust II, which accounts for $350 million of Tier 1 capital. Although the Bank has voting control it is not deemed the primary beneficiary under the VIE rules. For regulatory capital purposes, the Bank's innovative capital structures have been grandfathered by the Superintendent of Financial Institutions Canada, and the Bank's capital ratios are unaffected. HOW OUR BUSINESSES PERFORMED For management reporting purposes, the Bank's operations and activities are organized around the following operating business segments: Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking, Wholesale Banking and Wealth Management. Canadian Personal and Commercial Banking comprises the Bank's personal and business banking in Canada as well as the Bank's global insurance operations (excluding the U.S.). Results of each business segment reflect revenues, expenses, assets and liabilities generated by the business in that segment. The Bank measures and evaluates the performance of each segment based on earnings before amortization of intangibles and, where applicable, the Bank notes that the measure is before amortization of intangibles. This measure is only relevant in the Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking and Wealth Management segments as there are no intangibles allocated to the Wholesale Banking and Corporate segments. For further details see the "How the Bank Reports" section on page 4. For information concerning the Bank's measures of economic profit and return on invested capital, see page 5. Segmented information also appears in Appendix A on page 17. Net interest income, primarily within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt income including dividends is adjusted to its equivalent before tax value. Using TEB allows the Bank to measure income from all securities and loans consistently and makes for more meaningful comparison of net interest income with similar institutions. The TEB adjustment reflected primarily in the Wholesale Banking segment's results is eliminated in the Corporate segment. Canadian Personal and Commercial Banking Canadian Personal and Commercial Banking net income before amortization of intangibles for the fourth quarter was $443 million, an increase of $62 million or 16% from the same quarter last year, and the twelfth consecutive quarter of double-digit earnings growth. Return on invested capital increased to 23% this quarter compared to 21% a year ago and economic profit grew by $54 million or 25% compared with the same quarter last year. Revenue grew by $115 million or 7% compared with the same quarter last year. Volume growth across most banking products continued to be the main contributor to the revenue increase and was particularly strong in business deposits, real estate secured lending and credit cards. These areas of volume growth were partially offset by lower margins. Also contributing to the higher revenue was growth in service and transaction fees and insurance revenue. As compared with the same quarter last year, real estate secured lending volume (including securitizations) grew by $10 billion or 10%, personal deposit volume grew $4 billion or 5% while other personal loans were relatively flat. Business deposits grew by $4 billion or 12% and business loans and acceptances increased by $1 billion or 6%. Originated insurance premiums grew by $39 million or 8%. Market share improved during the quarter in personal deposits and small business lending while personal lending share declined. As of August 2005, personal deposit market share was 21.5% up .3% from last year and up .1% from last quarter. Personal lending market share was 20.1% down .4% from last year and down .2% from last quarter. Small business lending (credit limits of less than $250,000) market share as of June 2005 was 16.6%, up .7% from last year and up 0.6% from last quarter. Margin on average earning assets decreased from 3.02% last year to 2.96% this quarter primarily due to a change in product mix, as volume growth continues to be weighted toward lower margin products such as real estate secured lending and the guaranteed investment savings account. Margin improved by .04% from last quarter as lower mortgage prepayment costs and wider deposit margins offset the product mix impact. Provision for credit losses (PCL) for the quarter increased by $9 million or 10% compared with the same quarter last year. Personal PCL of $92 million was up $11 million from $81 million in the same quarter last year, primarily due to lower recoveries and volume growth in credit cards. Business Banking PCL of $5 million was down $2 million compared with $7 million in the same quarter last year. Annualized PCL as a percent of credit volume was .25%, unchanged from the same quarter last year. Expenses before amortization of intangibles increased by $24 million or 3% compared with the same quarter last year. Employee compensation, marketing and systems development and infrastructure projects were the main factors contributing to the increase in expenses. Offsetting these factors were transition costs associated with outsourcing automated banking machine operations included in the prior year that did not recur. The full time equivalent (FTE) staffing levels increased by 859 or 3% as compared with the same quarter last year, due to growth in insurance business volumes and the addition of sales and service personnel in branches (including the opening of 21 new branches) and call centres. The positive spread of four percentage points between revenue and expense growth resulted in a 2.5% improvement in the efficiency ratio, before amortization of intangibles, from last year to 56.0%. The outlook for revenue continues to be strong for both personal and business banking products as new marketing initiatives, branch openings, leadership in customer satisfaction, as well as greater sales capacity are targeted to attract both new customers and more business from existing customers. Deposit margins are expected to benefit from anticipated increases in short-term interest rates, offsetting the negative impact of the current product mix. Insurance volume growth is expected to remain solid, however, revenue growth will be moderated by premium rate reductions. The low PCL rates on personal loans are expected to be sustainable, however Business Banking PCL is likely to increase moderately going forward. Further investments in systems development and infrastructure, as well as increased marketing efforts will result in further expense growth. The expense impact of these initiatives will be offset as much as possible by savings from continual process improvements. Canadian Personal and Commercial Banking remains committed to deliver continuing double-digit earnings growth over time. U.S. Personal and Commercial Banking The U.S. Personal and Commercial Banking segment was established March 1, 2005, as a result of the acquisition of a majority interest in TD Banknorth. The results of TD Banknorth are on a one-month lag basis. For the fourth quarter, the U.S. Personal and Commercial Banking segment's earnings before amortization of intangibles was $69 million, the annualized return on invested capital was 5.6% and the economic loss was $42 million. These results are relatively unchanged from the prior quarter. Total revenues were $417 million. The margin on average earning assets was 4.09% and benefited from balance sheet de-leveraging in February 2005. The margin is down from 4.12% in the third quarter due to higher short-term rates. Consumer loan growth has been solid, while commercial loan growth slowed during the quarter and residential mortgage loans have declined slightly. Provision for credit losses for the quarter was $7 million, reflecting continued strong asset quality. Expenses before amortization of intangibles were $216 million, compared with $250 million last quarter. The average FTE staffing level for the quarter was 7,273 and the efficiency ratio, before amortization of intangibles was 51.8%. On July 12, 2005, TD Banknorth announced it had entered into a definitive agreement to acquire Hudson United Bancorp for approximately U.S. $1.9 billion in stock and cash. The acquisition, subject to both Hudson United and TD Banknorth shareholder approval, as well as regulatory approvals, is anticipated to close early in calendar 2006. Wholesale Banking Wholesale Banking recorded net income of $41 million in the fourth quarter, $81 million less than the fourth quarter of last year. The return on invested capital for the quarter was 7% compared with 21% in the same quarter last year. Economic loss for the quarter was $36 million compared with economic profit of $46 million in the same quarter last year. Wholesale Banking revenue is derived primarily from capital markets, investing and corporate lending activities. Revenue for the quarter was $371 million, compared with $464 million in the same quarter last year. The capital markets businesses generate revenues from advisory, underwriting, trading, facilitation and execution services. Capital markets revenues decreased compared to last year, largely due to the impact of a $107 million loss due to a reduction in the estimated value and the exit of certain structured derivatives portfolios in connection with the repositioning of the global structured products businesses. Stronger trading and higher equity commission and underwriting revenue partially offset this loss. The equity investment portfolio delivered revenue consistent with the same quarter last year as higher security gains largely offset lower net interest and dividend income. Corporate lending revenues were down slightly, primarily due to lower margins. Provisions for credit losses are comprised of allowances for loan losses and the accrual costs for credit protection. The change in market value of the credit protection, in excess of the accrual cost, is reported in the Corporate segment. Provisions for credit losses were $13 million for the quarter, slightly higher than $12 million in the same quarter last year. The entire $13 million provision in the quarter represented costs of credit protection. Wholesale Banking continues to proactively manage its credit risk and holds $3.2 billion in notional credit default swap protection, a decrease of $.4 billion from the end of last quarter and a decrease of $1.3 billion from the same quarter last year. The decrease from the same quarter last year is largely a result of rebalancing within the protection portfolio, whereas the decrease from last quarter is mainly related to the strengthening of the Canadian dollar relative to the U.S. dollar as most of the protection is denominated in U.S. currency. Expenses were $332 million, an increase of $71 million from $261 million from the same quarter last year. This is primarily due to higher payroll taxes and higher variable compensation, largely reflecting the impact of reduced variable compensation in the fourth quarter of last year. The expenses include a further $6 million restructuring charge related to the repositioning of some of our global structured products businesses, which was previously announced. We anticipate further restructuring costs in early fiscal 2006. Overall, the restructuring activities resulted in disappointing earnings in the quarter. As anticipated, the repositioning of the Bank's global structured products businesses continued to negatively impact results. However, our domestic franchise and other trading businesses delivered solid underlying earnings this quarter. These results give the Bank confidence going into 2006 that strategic decisions to reposition the global structured products businesses and focus on increasing domestic market share will generate a target return on invested capital of 15% to 22%. Wealth Management Wealth Management's net income before amortization of intangibles for the fourth quarter was $136 million, an increase of $73 million from the same quarter last year. The return on invested capital for the quarter was 21%, up 11% from the same quarter last year. The economic profit for the quarter was $58 million, an increase of $76 million from the loss in the same quarter last year. Total revenue increased $123 million from the same quarter last year to $722 million. Wealth Management experienced strong discount brokerage trading revenue driven by a 28% increase in trades per day to 106,000 as well as higher interest revenue resulting from an increase in brokerage deposit balances and higher spreads. The strength in discount brokerage revenues was partially offset by a stronger Canadian dollar that negatively impacted our U.S. based revenues. The revenue increase was also attributable to continued growth in assets under administration that occurred primarily in the advice-based businesses. Higher mutual fund management fees resulted in the quarter from a 20% growth in mutual fund assets under management. Expenses before amortization of intangibles were $514 million in the fourth quarter, an increase of $12 million compared with the same quarter last year. The increase was attributable to higher mutual fund trailer payments due to growth in assets under management, higher sales force compensation due to growth in the advice-based businesses and higher clearing charges with the growth in discount brokerage trading volumes. These increases were partially offset by the favorable impact of foreign exchange fluctuations on U.S. based expenses and by cost efficiencies in all businesses. Assets under management of $130 billion at October 31, 2005 increased $14 billion or 12% from October 31, 2004 due to strong sales of mutual funds, growth in institutional assets and market appreciation. Assets under administration totaled $314 billion at the end of the year, increasing $35 billion or 13% from October 31, 2004 in discount brokerage, private investment advice and financial planning as a result of the addition of new assets and market value increases. Wealth Management's investment in the advice-based and asset businesses is showing encouraging results as both client asset growth and growth in the number of client facing advisors has exceeded targets. The growth in these businesses now provides the Wealth platform with a more diversified and stable earnings base for the future. The outlook remains positive and expectations are for continued growth in these businesses with both client assets and client facing advisors maintaining their 2005 momentum. During early calendar 2006 we expect to close the TD Ameritrade transaction. Corporate During the fourth quarter, the Corporate segment reported a loss of $14 million. The results include a tax charge of $138 million related to the TD Waterhouse reorganization which precedes the transaction with Ameritrade. Having taken the tax charge, a gain of approximately U.S.$1 billion after-tax on this transaction is expected to be recognized in the first quarter of 2006. The gain is subject to the value of Ameritrade's share price at closing. Also included in the results are income relating to a $109 million recovery related to specific non-core portfolio loan loss recoveries from prior year sectoral provisions and favourable tax items of $68 million which include the impact of a recent court decision. A charge of $13 million was also recorded in net interest income due to the Bank's preferred share redemption during the quarter. In addition, the Corporate segment recorded gains of $10 million due to the impact of the hedging relationships accounting guideline. CONSOLIDATED BALANCE SHEET (unaudited) ------------------------------------------------------------------------- As at ------------------- Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- ASSETS ------------------------------------------------------------------------- Cash and due from banks $ 1,673 $1,404 ------------------------------------------------------------------------- Interest-bearing deposits with banks11,7457,634 ------------------------------------------------------------------------- Securities Investment 42,321 31,387 Trading 65,775 66,893 ------------------------------------------------------------------------- 108,096 98,280 ------------------------------------------------------------------------- Securities purchased under reverse repurchase agreements26,375 21,888 ------------------------------------------------------------------------- Loans Residential mortgages52,740 51,420 Consumer instalment and other personal 62,754 48,857 Credit cards2,9982,566 Business and government 35,044 22,264 ------------------------------------------------------------------------- 153,536 125,107 Allowance for credit losses (1,293) (1,183) ------------------------------------------------------------------------- Loans (net of allowance for credit losses) 152,243 123,924 ------------------------------------------------------------------------- Other Customers' liability under acceptances 5,9895,507 Trading derivatives' market revaluation 33,651 33,697 Goodwill 6,5182,225 Other Intangibles2,1242,144 Land, buildings and equipment 1,8011,330 Other assets 14,995 12,994 ------------------------------------------------------------------------- 65,078 57,897 ------------------------------------------------------------------------- Total assets $365,210 $311,027 ------------------- ------------------- LIABILITIES ------------------------------------------------------------------------- Deposits Personal $131,783 $111,360 Banks 11,505 11,459 Business and government 103,693 84,074 ------------------------------------------------------------------------- 246,981 206,893 ------------------------------------------------------------------------- Other Acceptances 5,9895,507 Obligations related to securities sold short 24,406 17,671 Obligations related to securities sold under repurchase agreements 11,2849,846 Trading derivatives' market revaluation 33,498 33,873 Other liabilities 18,545 16,365 ------------------------------------------------------------------------- 93,722 83,262 ------------------------------------------------------------------------- Subordinated notes and debentures 5,1385,644 ------------------------------------------------------------------------- Liabilities for preferred shares and capital trust securities1,7952,560 ------------------------------------------------------------------------- Non-controlling interest in subsidiaries 1,708 - ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY ------------------------------------------------------------------------- Common shares (millions of shares issued and outstanding: 2005 - 711.8 and 2004 - 655.9) 5,8723,373 Contributed surplus 40 20 Foreign currency translation adjustments (696)(265) Retained earnings 10,6509,540 ------------------------------------------------------------------------- 15,866 12,668 ------------------------------------------------------------------------- Total liabilities and shareholders' equity $365,210 $311,027 ------------------- ------------------- Certain comparative amounts have been restated. See Basis of Preparation on page 8. CONSOLIDATED STATEMENT OF INCOME (unaudited) ------------------------------------------------------------------------- For the three For the twelve months ended months ended --------------------------------------- Oct. 31 Oct. 31 Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Interest income Loans $ 2,328 $ 1,767 $ 8,322 $ 6,958 Securities Dividends 225 230 927 859 Interest 792 6493,1122,798 Deposits with banks106 156 415 517 ------------------------------------------------------------------------- 3,4512,802 12,776 11,132 ------------------------------------------------------------------------- Interest expense Deposits 1,4101,0095,1293,853 Subordinated notes and debentures 84 78 328 312 Distributions from liabilities for preferred shares and capital trust securities47 40 147 170 Other obligations 269 2401,1641,024 ------------------------------------------------------------------------- 1,8101,3676,7685,359 ------------------------------------------------------------------------- Net interest income 1,6411,4356,0085,773 Provision for (reversal of) credit losses(15) (73) 55 (386) ------------------------------------------------------------------------- Net interest income after provision for (reversal of) credit losses 1,6561,5085,9536,159 ------------------------------------------------------------------------- Other income Investment and securities services634 5112,4172,296 Credit fees 84 80 343 343 Net investment securities gains 76 44 242 192 Trading income (loss) (88) (75) 147 (153) Service charges 219 170 787 673 Loan securitizations 120 82 414 390 Card services 85 20 279 172 Insurance, net of claims210 175 826 593 Trust fees33 18 111 78 Other69 93 323 299 ------------------------------------------------------------------------- 1,4421,1185,8894,883 ------------------------------------------------------------------------- Net interest and other income 3,0982,626 11,842 11,042 ------------------------------------------------------------------------- Non-interest expenses Salaries and employee benefits 1,126 9094,2183,780 Occupancy including depreciation 173 157 676 612 Equipment including depreciation 171 161 609 562 Amortization of other intangibles 135 142 546 626 Restructuring costs (reversal) 6 - 43 (7) Marketing and business development 116 88 469 384 Brokerage related fees 55 49 226 228 Professional and advisory services155 144 494 446 Communications 55 53 205 207 Other 211 2011,2961,169 ------------------------------------------------------------------------- 2,2031,9048,7828,007 ------------------------------------------------------------------------- Income before provision for income taxes 895 7223,0603,035 Provision for income taxes 253 127 699 803 ------------------------------------------------------------------------- Income before non-controlling interest in subsidiaries 642 5952,3612,232 Non-controlling interest in net income of subsidiaries 53 - 132 - ------------------------------------------------------------------------- Net income to common shares $ 589 $ 595 $ 2,229 $ 2,232 --------------------------------------- --------------------------------------- Average number of common shares outstanding (millions) Basic710.0653.5691.3654.5 Diluted 716.1658.2696.9659.4 Earnings per share Basic $ .83 $ .91 $ 3.22 $ 3.41 Diluted.82 .90 3.20 3.39 --------------------------------------- --------------------------------------- Certain comparative amounts have been restated. See Basis of Preparation on page 8. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) ------------------------------------------------------------------------- For the year ended ------------------- Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 ------------------------------------------------------------------------- Common shares Balance at beginning of year $ 3,373 $ 3,179 Proceeds from shares issued on exercise of options 125 99 Proceeds from shares issued as a result of dividend reinvestment plan 380 174 Impact of shares (acquired) sold in Wholesale Banking 6 (41) Repurchase of common shares - (38) Issued on acquisition of TD Banknorth1,988 - ------------------------------------------------------------------------- Balance at end of year5,8723,373 ------------------------------------------------------------------------- Contributed surplus Balance at beginning of year 20 9 Stock option expense20 11 ------------------------------------------------------------------------- Balance at end of year 40 20 ------------------------------------------------------------------------- Foreign currency translation adjustments Balance at beginning of year(265)(130) Foreign exchange losses from investments in subsidiaries and other items (718)(739) Foreign exchange gains from hedging activities 4281,004 Provision for income taxes (141)(400) ------------------------------------------------------------------------- Balance at end of year (696)(265) ------------------------------------------------------------------------- Retained earnings Balance at beginning of year 9,5408,518 Net income 2,2292,232 Common dividends(1,098)(890) Termination of equity based compensation plan - (24) Premium paid on repurchase of common shares - (312) Other (21) 16 ------------------------------------------------------------------------- Balance at end of year 10,6509,540 ------------------------------------------------------------------------- Total shareholders' equity $ 15,866 $ 12,668 ------------------- ------------------- Certain comparative amounts have been restated. See Basis of Preparation on page 8. CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) ------------------------------------------------------------------------- For the three For the twelve months ended months ended --------------------------------------- Oct. 31 Oct. 31 Oct. 31 Oct. 31 (millions of Canadian dollars) 2005 2004 2005 2004 ------------------------------------------------------------------------- Cash flows from (used in) operating activities Net income $ 589 $ 595 $ 2,229 $ 2,232 Adjustments to determine net cash flows from (used in) operating activities Provision for (reversal of)credit losses (15) (73) 55 (386) Depreciation 95 83 322 294 Amortization of othe ntangibles135 142 546 626 Stock option expense 4 3 20 11 Net investment securities gains (76) (44)(242)(192) Gain on securitizations (47) (16)(166)(134) Non-controlling interest 53 - 132 - Changes in operating assets and liabilities Future income taxes (154) 276 (261) 128 Current income taxes payable 241 231 2 (440) Interest receivable and payable 200 11 588 (141) Trading securities 6,822 8091,118 (12,003) Unrealized gains and amount eceivable on derivative ontracts 534 (7,534) 46 (5,246) Unrealized losses and amount ayable on derivative ontracts (1,379) 7,317 (375) 5,873 Other (507)(407) 1,248 370 ------------------------------------------------------------------------- Net cash from (used in) operating activities 6,4951,3935,262 (9,008) ------------------------------------------------------------------------- Cash flows from (used in) financing activities Deposits (4,457) (4,611) 11,169 24,013 Securities sold under repurchase agreements (1) (1,088) 1,4382,001 Securities sold short 1,282 (1,742) 5,3052,325 Issuance of subordinated notes and debentures 270 3 270 3 Repayment of subordinated notes and debentures (665) (1) (1,419)(158) Subordinated notes and debentures (acquired) sold in Wholesale Banking (9) 40 (3) (26) Liability for preferred shares and capital trust securities (403) 1 (765)(225) Translation adjustment on subordinated notes and debentures issued in a foreign currency(28) (69) (24) (62) Common shares issued on exercise of options 31 17 125 99 Common shares issued as a result of dividend reinvestment plan 104 78 380 174 Common shares (acquired) sold by Wholesale Banking (7) 33 6 (41) Repurchase of common shares - - - (350) Dividends paid on common shares (298)(235) (1,098)(890) ------------------------------------------------------------------------- Net cash from (used in) financing activities(4,181) (7,574) 15,384 26,863 ------------------------------------------------------------------------- Cash flows from (used in) investing activities Interest-bearing deposits with banks(1,438) 766 (4,111) (1,383) Activity in investment securities Purchases(4,697) (3,963) (23,158) (30,877) Proceeds from maturities 1,1771,7686,3884,688 Proceeds from sales 1,9844,505 12,413 19,769 Activity from lending activities Origination and acquisitions(17,895) (13,755) (78,655) (77,827) Proceeds from maturities15,351 10,756 62,956 63,457 Proceeds from sales 1,853 2804,5413,326 Proceeds from loa ecuritizations 1,7432,0907,3655,564 Land, buildings and equipment (123) (192)(814)(207) Securities purchased under reverse repurchase agreements (751)3,513 (4,487) (4,413) TD Banknorth share repurchase program -- (603) - Acquisitions and dispositions less cash and cash equivalents acquired -- (2,184) - ------------------------------------------------------------------------- Net cash from (used in) investing activities (2,796)5,768 (20,349) (17,903) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (17) (19) (28) (16) ------------------------------------------------------------------------- Net changes in cash and cash equivalents(499) (432) 269 (64) Cash and cash equivalents at beginning of period 2,172 1,8361,4041,468 ------------------------------------------------------------------------- Cash and cash equivalents at end of period represented by cash and due from banks $ 1,673 $ 1,404 $ 1,673 $ 1,404 --------------------------------------- --------------------------------------- Supplementary disclosure of cash flow information Amount of interest paid during the period $ 1,560 $ 1,303 $ 6,433 $ 5,468 Amount of income taxes paid during the period195 25 9681,509 Dividends per common share $ .42 $ .36 $ 1.58 $ 1.36 Certain comparative amounts have been restated. See Basis of Preparation on page 8. APPENDIX A Results by Business Segment U.S. Personal and (millions of Canadian Personal Commer- Canadian and Commercial cial Wholesale dollars) Banking BankingBanking(1) --------------------------------------------------------------- For the three Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 months ended2005 2004 2005 2005 2004 --------------------------------------------------------------- Net interest income $ 1,129 $ 1,091 $ 298 $ 234 $ 349 Other income 600 523 119 137 115 --------------------------------------------------------------- Total revenue 1,7291,614 417 371 464 Provision for (reversal of) credit losses 97 88 7 13 12 Non-interest expenses before amortization of intangibles 968 944 216 332 261 --------------------------------------------------------------- Income (loss) before provision for (benefit of) income taxes 664 582 194 26 191 Provision for (benefit of) income taxes 221 201 72 (15) 69 Non- controlling interest - - 53 - - --------------------------------------------------------------- Net income (loss) - before amortization of intangibles $ 443 $ 381 $69 $41 $ 122 ------------------------------------------------- ------------------------------------------------- Amortization of intangibles, net of income taxes Net income - reported basis Total assets (billions of Canadian dollars) - balanc heet $ 131.0 $ 123.2 $ 35.7 $ 156.7 $ 148.1 - securi-tized34.5 29.9 - - - --------------------------

Source: PR Newswire