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 - Analyst : I'd like to start off with a big picture one. We'll set the tariff situation aside, but for a moment anyway. You're an incoming CEO. There's a lot of moving pieces, like, how are you approaching the situation?

Question: Gabriel Dechaine - National Bank Financial - Analyst : So the strategic review process, and just to dumb it down for me, you're two-thirds of the way through. What's the big reveal going to include? And I'm not expecting to throw numbers at me, that would be great. If you want it, feel free. But I mean, is it an earnings per share growth target, ROE target? What else? What are the big takeaways that we're going to be getting? 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 - Analyst : Okay. So you mentioned -- a lot to chew on there, but just -- I don't want to move off of Schwab just the math on Schwab, selling it, big gain, buybacks, you can neutralize the earnings per share impact. But your ROE does take a step back, just, you lose the earnings and then the equity base is larger. So just how the math works. Is the -- is it safe to assume that you've got a vision for redeploying that capital such that you can offset or maybe more than that the ROE step back in the medium term? 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 - Analyst : And sticking to Schwab, we've seen you shrink the relationship. You sold your investment, but you still have the IDA agreement. I wrote a report on it actually, it's really good, you should all read it. There's actually a case to be made that taking on more deposits is advisable. It's a high ROE business. So to achieve that objective, there's some considerations vis-a-vis the asset cap, but Schwab seems to want to do more partnership with banks to offload deposits. Is there any case to be made there?

Question: Gabriel Dechaine - National Bank Financial - Analyst : Okay. Now, last Schwab-related question, I guess, is that in selling the asset. You got $15 billion or so of capital and $8 billion of that is for buybacks and the rest is for helping you execute on the strategic repositioning of the bank. Like, that's a lot of money. Like, is all that necessary? Or you think about restructuring charges? I wouldn't want to see $6 billion of restructuring charges.

Question: Gabriel Dechaine - National Bank Financial - Analyst : And what's the benchmark your management target of core Tier 1? You're well above.

Question: Gabriel Dechaine - National Bank Financial - Analyst : Now, the organic growth opportunity in Canada, can you -- I mean, the environment we have today doesn't seem too conducive to organic growth for any bank in Canada anyway. Can you still outgrow the competition with that kind of backdrop?

Question: Gabriel Dechaine - National Bank Financial - Analyst : Yeah. That was my next line of question. It was on the wholesale business. So historically, TD has had a relatively smaller capital markets business, domestic focused like Universal in Canada, whatever you want to call it, in the US, more of a balance sheet business, fixed income dealer. Now, you've got an investment bank with a balance sheet in the US. So that should become a bigger part of your overall business over time.

Question: Gabriel Dechaine - National Bank Financial - Analyst : We used to work with those guys. Anyway, the organic story is one important discussion, of course, M&A. And I just bring this up because I don't think I've ever heard a CEO be as definitive about not now. That was kind of the message I think that was on the Q1 call, somebody was asking about acquisitions. And we think about wealth, we think about P&C Insurance as maybe some areas where you'd be acquisitive, but I think you said it was too much of a distraction. And maybe if you want to expand on that because, I mean, I think certainty in this situation is good.

Question: Gabriel Dechaine - National Bank Financial - Analyst : Okay. You mentioned the focus on AML remediation and several questions around that. Let me get this right here. Your monitorship was approved during Q1. Like, what does that mean?

Question: Gabriel Dechaine - National Bank Financial - Analyst : Okay. Now -- the costs associated with the AML remediation issue or you've quantified them. Are there any additional costs that might not get captured in that estimate, whether it's new hires or just unexpected new consultants that might not be hired yet. I don't know. 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 - Analyst : And having the -- you upgraded the Board, the senior compliance people with all the AML experience has got to make the process. I don't know -- I don't want to say it's easy, but a lot -- you're benefiting from the experience of others.

Question: Gabriel Dechaine - National Bank Financial - Analyst : You say it's good for the industry, I guess, raising the bar on all that. Is that something you could say about the Canadian business as well because it's not like we're insulated from these issues.

Question: Gabriel Dechaine - National Bank Financial - Analyst : Okay. Any questions from the audience before we wrap up? Well, great. Thanks for joining us in Montreal. I really appreciate it, and great to get to know you better.