Toronto-Dominion Bank at National Bank Financial Services Conference Transcript

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

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I have a bunch of questions here, but one I'd like to start off with, since you're relatively new to the role last fall, right? Can you give us a bit of overview of your background at the bank and what your first impressions are on the personal banking business or from your current seat?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And the impressions. So the Q1 call, there was one question asked about market share. And you're -- in some market, you're lagging a bit. And your response was -- the tone was a little bit, we can do better. I'm curious about what areas do you see that need some work? And how are you planning on addressing those areas?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Well, one of the changes I believe you made recently to your -- on the distribution side -- sorry, the FlexLine product is being in...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Broker channel. So what -- why wasn't it there before? I guess that'll leave me with my first question.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And is that FlexLine -- I'm a little bit confused sometimes, the combined mortgage and HELOC projects, like the regulator is kind of shining a light on that. And it's a big product for every bank at this point. And TD was an innovator and that's a big product for you. Is that -- what are your thoughts on potential regulatory oversight of that particular type of product? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Fourth in what like...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Volume.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Got it. The credit card business, so that's one where I don't know TD is a big market share, of course. But if I look at pre-COVID balances to today, that's one where your recovery has been slower than some of the peers. And I'm wondering, is that because you had a heavy travel card emphasis? Or is it the legacy -- not legacy, it's called the MBNA product because that's a more borrowing-based product, and that's just not what people are using anymore or as much?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I do have a follow-up, and it's on the revolver rates being so low. I mean I anticipated, my simplistic view of the world, that government programs have got wound down when September last year. You'd have a few months go by and people will start having to carry balances again. Or maybe my time and expectations are off, but not just now, but it sounds -- I've talked to a few other bankers. And it's -- they seem to be pushing back expectations for when revolver rates will actually go back to pre-COVID levels. Why is that? And what's your outlook?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So the other today versus pre-COVID comparison I look at is margins. And your margins are still further off from pre-COVID. How much of that is because of this cards issue we're talking about because it was the highest spread products? And how much of that is due to other factors? What might those be?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Right. And that's my -- leads into my next question is a rising rate environment. How much pricing power do you have on the deposit side of the balance sheet such that maybe you can overshoot some of the rate sensitivity metrics you've given us?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : You can give us the other number.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : We're among friends.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I don't want to be the last.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I guess pricing power on deposits.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : What's the...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : And this 75, you don't pass anything through...

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Got it. But I imagine, given the level of excess deposits that are across the system, the competitive intensity just isn't that high. Or is it more of a behavioral issue? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Okay. Expense management and investment spending. So we're in the phase now where banks are gearing up for more initiative spending. I'll start with what are your areas of focus right now. What's the priority for these investments?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : So earlier, I heard you talk about the branch network, 90% urban, the best in Canada. And then a lot of emphasis on digitization. And this is the question everybody asks, and I myself included, and I think it's one I want to kind of feel the pulse of things. With all this digitization and increasing proportion of transactions online, what does the future of the branch look like? Is it just -- well, it will go down slowly and we make them smaller or something like that? Or is it something else?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Sure.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : I guess the end of the branch is an exaggeration, right? A quick one on the expense initiatives. In the world that we're in, how quickly can you pivot away from if it's batten down the hatches?

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Well, with that, I'd like to thank you for coming to Montreal.

Question: Gabriel Dechaine - National Bank Financial, Inc., Research Division - Analyst : Really appreciate your presence here, and good luck for the rest of the day.