THE TORONTO-DOMINION BANK
EARNINGS COVERAGE ON SUBORDINATED
NOTES AND DEBENTURES,
PREFERRED SHARES CLASSIFIED AS EQUITY,
AND LIABILITIES FOR
PREFERRED SHARES AND OTHER EQUITY INSTRUMENTS
AND CAPITAL
TRUST SECURITIES
FOR THE TWELVE
MONTHS ENDED JANUARY 31,
2025
TD Bank Group (“TD” or the “Bank”) dividend
requirements on all its outstanding preferred
shares and other equity instruments in respect
of the twelve months
ended January 31,
2025 and adjusted to a before-tax equivalent
using an effective tax rate of approximately
23.1% for the twelve months ended January
31, 2025,
amounted to $700 million. The Bank’s interest and
dividend requirements on all subordinated notes
and debentures, preferred shares and liabilities
for preferred
shares and other equity instruments and
capital trust securities, after adjustment
for new issues and retirement, amounted
to $1,189 million for the twelve months
ended January 31,
2025.
The Bank’s reported net income, before interest on
subordinated debt and liabilities for preferred
shares and capital trust securities and
income taxes was $11,254 million for the twelve months ended
January 31, 2025,
which was 9.5 times the Bank’s aggregate dividend
and interest requirement for
this period.
On an adjusted basis, the Bank’s net income before
interest on subordinated debt and liabilities
for preferred shares and other equity instruments
and capital
trust securities and income taxes for the twelve
months ended January 31, 2025, was $17,271
million, which was 14.5 times the Bank’s aggregate
dividend and
interest requirement for this period.
The Bank prepares its interim consolidated
financial statements in accordance with International
Financial Reporting Standards (IFRS),
the current generally
accepted accounting principles (GAAP),
and refers to results prepared in accordance
with IFRS as “reported”
results. The Bank also utilizes non-GAAP
financial
measures such as “adjusted”
results (i.e. reports results excluding
“items of note”) and non-GAAP ratios to
assess each of its businesses and measure
overall
Bank performance. The Bank believes that non-GAAP
financial measures and non-GAAP ratios
provide the reader with a better understanding
of how
management views the Bank’s performance.
Non-GAAP financial measures and ratios used
in this presentation are not defined under
IFRS, and, therefore, may
not be comparable to similar terms used by
other issuers. See “How We Performed”
and “Quarterly Results” sections of the
Bank’s first quarter 2025 MD&A
(available at www.td.com/investor and www.sedarplus.ca), which are incorporated
by reference, for further explanation,
reported basis results, a list of the items
of
note, and a reconciliation of adjusted to reported
results.
