Toronto-Dominion Bank at RBC Capital Markets Canadian Bank CEO Conference Transcript

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

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Always a tough one to have with a bank that had an investor day so close to, and then a good fourth quarter. So -- and your fourth quarter in particular was interesting in the sense that when I went through the results, there was an amazing amount of guidance. In your numbers, so a lot of what I'm going to ask today is maybe for some refinement on a few things and I do want to go back to the investor day and the plan. So what I wanted to sort of touch on is, some of the things you said in the last fourth quarter call was pretty interesting in terms of credit card penetration, referrals from wealth, the strength and mortgage origination. So I wanted to touch on, knowing a little bit about, sort of how that's coming about so quickly, so strongly, the momentum that you've peaked, what's changed? How is execution going, and how should we think about those things as we head into 2026?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And so how do you manage the spread, especially with the all these renewals going on? Is it just a function of the rates are in a better place?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Okay, great. That's great insight. Maybe switching gears a little bit thinking about commercial loan growth, I've heard mixed views on commercial going into '26. Some people are saying, look, it's still uncertain, pens are down, but I'm hearing, there's also some green shoots. How do you see it in Canada and in the US and where do you see actually the better opportunity in '26 for your franchises in Canada or the US?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : But which area do you think you're more optimistic on with respect to loan demand? Would it be Canada or the US? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And where are you on this journey of adding all of these frontline staff I mean just very early days, right?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And that might be tough in this environment. Markets are up. It's expensive. It's --

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : So lots of frontline expansion brings you to costs, right? I mean, so and one of the interesting things that we heard about at your investor today was, a far more focused, I would say focused view on costs and you talk about structural costs. Maybe you can talk a little bit about where you are in that journey, and since Investor Day, if you unearthed more opportunities and what can you say to us about the cost?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : So that's great detail. I was busy writing down a bunch of numbers, but in addition to the structural work that you're just talking about, you took restructuring charges in '25 and as you know, the way we measure it, restructuring charges as a percentage of your expense base, whatever, it was relatively high, right? So some of the feedback I've been getting is, wow, this is a bit of a left turn for TD so focused on costs, Darko, is it too aggressive for TD? Is there friction? Are there -- what do you say to those fears, because I literally look back and I say TD has the most aggressive cost targets. It just is what it is. But how do you allay those fears that is -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And maybe just a final sort of touch on that is, I mean, I had thought that at Investor Day. I think in total was $2 to $2.5 billion of cost takeout inclusive of the restructuring. But that a large part of that would fall to the bottom line. Is that still the case today?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Okay, so one of the things that sort of has been helping the Canadian banks and certainly TD, with a large deposit base has been [tractoring], improvement in mortgage spreads and and all that's positive. I think a lot of that -- the expectation is that a lot of that will continue into 2026. I think one thing that's different though is maybe the US Fed cut rates. So maybe you can talk about -- because you have a big US business -- and you reposition the balance sheet there, so maybe you can talk a little bit about how we should think about the environment in the US with rates going down, how that might affect -- or not affect -- your net interest income and interest margin.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And the expansion is driven by?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : And so that's NII. What about the fee side of the business? How should we think about fees? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Okay, at this point I think I'm going to quickly rush over to the questions that are coming in and the -- So first question, once your loan reduction efforts in the US are complete, where -- which loan categories do you think will have the highest growth potential in '26 and '27?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Okay, Interesting question. So, digital banking and stablecoins looking to disrupt traditional branch banking. How do you defend against this and how big a threat do you view these trends?

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : So we're at the last few minutes, over to you for some key takeaways for investors today.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Excellent. Thank you very much.

Question: Darko Mihelic - RBC Capital Markets Inc - Analyst : Thank you. DISCLAIMER LSEG reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes. In the conference calls upon which Event Transcripts are based, companies may make projections or other forward-looking statements regarding a variety of items. Such forward-looking statements are based upon current expectations and involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings. Although the companies may indicate and believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES LSEG OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies.