The Toronto-Dominion Bank (NYSE:TD) Q3 2019 Earnings Conference Call - Final Transcript

Aug 29, 2019 • 01:30 pm ET


The Toronto-Dominion Bank (NYSE:TD) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon ladies and gentlemen. Welcome to the TD Bank Group's Q3 2019 Conference Call. I'd now like to turn the meeting over to Ms. Gillian Manning, Head of Investor Relations at TD Bank. Please go ahead, Ms. Manning.

Gillian Manning

Thank you operator. Good afternoon and welcome to TD Bank Group's third quarter 2019 investor presentation. We'll begin today's presentation with remarks from Bharat Masrani, the Bank's CEO; after which, Riaz Ahmed, the Bank's CFO, will present our third quarter operating results; Ajai Bambawale, Chief Risk Officer, will then offer comments on credit quality, after which we will invite questions from pre-qualified analysts and investors on the phone.

Also present today to answer your questions are Teri Currie, Group Head Canadian Personal Banking; Greg Braca, President and CEO, TD Bank, America's Most Convenient Bank; and Bob Dorrance, Group Head Wholesale Banking.

Please turn to Slide two. At this time, I'd like to caution our listeners that this presentation contains forward-looking statements, that there are risks that actual results could differ materially from what is discussed and that certain material factors or assumptions were applied in making these forward-looking statements. Any forward-looking statements contained in this presentation represent the views of management and are presented for the purpose of assisting the Bank's Shareholders and Analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance. Forward-looking statements may not be appropriate for other purposes.

I'd also like to remind listeners that the Bank uses non-GAAP financial measures to arrive at adjusted results to assess each of its businesses and to measure overall Bank performance. The Bank believes that adjusted results provide readers with a better understanding of how management views the Bank's performance. Bharat will be referring to adjusted results in his remarks. Additional information on items of note, the Bank's reported results and factors and assumptions related to forward-looking information are all available in our Q3 2019 report to shareholders.

With that, let me turn the presentation over to Bharat.

Bharat Masrani

Thank you, Gillian and thank you everyone for joining us today. Q3 was another stong quarter for TD. Earnings rose 7% to $3.3 billion and EPS increased 8% to $1.79. All of our segments performed well in the quarter. We generated good revenue growth as customers entrusted us with more of their business. Expense growth moderated, resulting in positive operating leverage, and we continued to invest in our capabilities to serve our customers better, today and tomorrow.

These forward-focused investments are made possible by the strength of our business model. It has proven itself over time, delivering consistent earnings growth, anchored by a strong risk culture and robust balance sheet metrics. That includes a CET1 ratio that held steady at 12% this quarter after the repurchase of over a 11 million common shares. This is a powerful testament to our ability to generate organic capital and an important source of strength and flexibility.

This impressive enterprise performance was built on positive results, in each of our segments, let me