Toronto-Dominion Bank at Barclays Global Financial Services Conference Transcript

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

Question: Brian Morton - Barclays - Analyst : Thanks, Ray. So it's closing in on close to a year since you took over responsibility for the Canadian Personal Banking segment and having previously served -- having previously been serving as group head, wealth management insurance. And tell me how your experience in your previous role shaped your approach to the Canadian Personal Banking business?

Question: Brian Morton - Barclays - Analyst : Okay, and just as you mentioned, with 1 in 3 Canadians and 1 in 2 Torontonians banking with TD, you have a unique insight into the health of the community consumer. From your perspective, how is the Canadian consumer managing against the slowing economy, rising unemployment, and the impact of higher interest rates on residential mortgage renewals? And are you seeing any differences in payments and the delinquency rates between the various consumer segments?

Question: Brian Morton - Barclays - Analyst : Great. We just -- based on three rate cuts from the Bank of Canada, we've got a few more likely before the end of the year. Do you think this is enough to release pressure on the consumer side? Or do you need to see more rate cuts throughout 2025?

Question: Brian Morton - Barclays - Analyst : Great. Maybe (inaudible) about gathering and retaining personal deposits has been a cornerstone to TD's Canadian personal banking strategy. With the leading deposit market shares, how are you looking to continue to grow deposits and increase market share? And are you seeing the same pressure on deposit costs in the US?

Question: Brian Morton - Barclays - Analyst : Interesting. So aside from mortgages, card has also been a driver of growth. Can you talk about your position in the segment with rewards programs and partnerships? Where are you seeing the largest competitive step?

Question: Brian Morton - Barclays - Analyst : Great. One of the questions I get from clients a lot is regarding kind of the BSA/AML issues. And in the US, the TD BSA/AML compliance program has come under increased regulatory scrutiny. Maybe can you talk about the relationships with the Canadian regulators, how that may be different from US regulators? And are you seeing a corresponding increase in regulatory scrutiny on BSA/AML in Canada?

Question: Brian Morton - Barclays - Analyst : Okay. One of the things that comes up a lot, too, is technology and digital offerings. How would you compare TD's technology platform to your Canadian competitors? And are there any specific areas such as data analytics or AI where you think you need to invest to remain competitive?

Question: Brian Morton - Barclays - Analyst : And so as we all know, like you said, mobile, mobile, mobile, maybe you compare how you're investing in mobile and the need for branches and ATMs and where you may be dialing back on the branches or how important the branches are to the Canadian customers?

Question: Brian Morton - Barclays - Analyst : One of the things that you mentioned earlier that you said you believe AI is going to be transformational. How transformational do you think it will be for the banking industry? And how close do you think your TD event segment is to bring some of these ideas to market?

Question: Brian Morton - Barclays - Analyst : Interesting. And you did talk about how some of this will improve efficiencies. Maybe you can talk a little bit more about the efficiency program. TD expects about $800 million in annual savings from its recently completed restructuring program. Can you talk about maybe how much of that is coming from Canadian Personal Banking, and do you see opportunities for more efficiencies? And how much of that is being reinvested in technology initiatives versus how much you think can fall to the bottom line?

Question: Brian Morton - Barclays - Analyst : One question -- interesting. I want to ask how does -- how do you view the Canadian banking business in terms of capital? How does that fit into TD's overall capital strategy? Do you feel like you're generating more capital than you need, where are you investing in the capital, and how you feel about the capital as being kind of sent up towards the other parts of the business?

Question: Brian Morton - Barclays - Analyst : Great. Open up to see if there's any questions in the audience. You can wait to see if some (inaudible) comes down. Question up front? Unidentified Participant Could you just give us an idea of the new to Canada influx? And what kind of -- how you see their wealth helping as well as Canada? And how are you figuring out how much money they have, and how much that they could spend and so on? How do you figure that out when they're still new?

Question: Brian Morton - Barclays - Analyst : Another question on new to Canada. How much is high home prices like a barrier to new to Canada? And is that an impact of slowing immigration?

Question: Brian Morton - Barclays - Analyst : I mean, another on new to Canada, maybe talk us through like the life cycle of a new to Canada customer. How long does it take to go from like that initial primary relationship, card, mortgage, wealth? And then at what point do they kind of resemble in terms of product relationship with TD non-New to Canada? And we talk about how important and how you're able to retain those customers throughout that lifetime.

Question: Brian Morton - Barclays - Analyst : Great. Does anyone else have any questions?

Question: Brian Morton - Barclays - Analyst : Okay. Anyone else have any questions for Ray? All right. Please join me in thanking Ray for his presentation. Thank you very much, Ray.