Toronto-Dominion Bank Investor Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Rizvanovic - Scotiabank GBM - Analyst : Mike Rizvanovic at Scotiabank. Maybe one for Sona. Just wanted to go back to the 700 basis point advantage that you noted on the customer primacy. And I'm wondering how that's trended over time? And then secondly, given that you're peer leading, does it become progressively harder to move the needle or even to maintain that? Because we are hearing all the banks talk about very similar things when it comes to the dynamic of customer primacy and getting that customer relationship deeper.

Question: Mike Rizvanovic - Scotiabank GBM - Analyst : And -- just one quick one for Leo, not to sound facetious, but one of the priorities that you mentioned was the technology capabilities and your -- I guess, your tech infrastructure in the US. And you mentioned it was acquisition-related, but these deals go back to 2004, 2008. So what has precluded the bank from integrating tech in previous years? Has there been any hindrance that now maybe isn't holding you back?

Question: Mike Rizvanovic - Scotiabank GBM - Analyst : Mike Rizvanovic, Scotiabank. I'll start with James. I wanted to ask you about the 28% ROE target for insurance. Life insurance is not even in that ballpark, P&C insurance is certainly not even in that ballpark. And so I'm -- just correct me if I'm thinking about this correctly, but is it really the massive returns that you can generate on things like credit protection and other forms of insurance that really drive that ROE? James Russell - Toronto-Dominion Bank - President and Chief Executive Officer - TD Insurance Well, first of all, thank you so much for that question. I'd say it's the -- first of all, it's the consolidated returns that we have across the entire Insurance segment, which does include everything that you've mentioned. Our legal entities that do P&C insurance, our distribution entities, our Life and Health business and our reinsurance entities. One thing I would say is that we have been highly capital efficient in the way that we manage our capital because we do both life and health and P&C insurance. The expense advantages I talked about lead us to have higher ROEs in the General Insurance business as well. And in fact, the year-to-date return on insurance this year is 26%. So -- and over the last five years, we've had a 28% average ROE within the Insurance business. So it's historic. And really, what we're looking to do is grow the business and keep the same level of returns as we go forward.