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TD TD Bank Group Reports First Quarter 2021 Results Report to Shareholders • Three months ended January 31 , 2021 The financial information in this document is reported in Canadian dollars and is based on the Bank's unaudited Interim Consolidated Financial Statements and related Notes prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International Accounting Standards Board ( IASB ) , unless otherwise noted . Reported results conform to generally accepted accounting principles ( GAAP ) , in accordance with IFRS . Adjusted measures are non - GAAP measures . Refer to the " How the Bank Reports " section of the Management's Discussion and Analysis ( MD & A ) for an explanation of reported and adjusted results . FIRST QUARTER FINANCIAL HIGHLIGHTS , compared with the first quarter last year : • • • Reported diluted earnings per share were $ 1.77 , compared with $ 1.61 . Adjusted diluted earnings per share were $ 1.83 , compared with $ 1.66 . Reported net income was $ 3,277 million , compared with $ 2,989 million . • Adjusted net income was $ 3,380 million , compared with $ 3,072 million . FIRST QUARTER ADJUSTMENTS ( ITEMS OF NOTE ) The first quarter reported earnings figures included the following items of note : • Amortization of intangibles of $ 74 million ( $ 65 million after - tax or 4 cents per share ) , compared with $ 70 million ( $ 59 million after - tax or 3 cents per share ) in the first quarter last year . • Acquisition and integration charges related to the Schwab transaction of $ 38 million ( $ 38 million after - tax or 2 cents per share ) . TORONTO , February 25 , 2021 - TD Bank Group ( " TD " or the " Bank " ) today announced its financial results for the first quarter ended January 31 , 2021. Reported earnings were $ 3.3 billion , up 10 % compared with the same quarter last year , and adjusted earnings were $ 3.4 billion , up 10 % . " TD reported strong results in the first quarter , benefiting from our diversified business model , focused approach to managing the COVID - 19 crisis and an improving macroeconomic environment , " said Bharat Masrani , Group President and CEO , TD Bank Group . " Throughout the quarter , we made important investments to deepen customer relationships across our businesses , including through enhanced digital capabilities and advice programs to meet the rapidly changing needs of those we serve . " " The Bank's purpose - to enrich lives - remains at the centre of our efforts . In the quarter , fifteen organizations were provided a total of $ 10 million in grants through the TD Ready Challenge to develop innovative solutions that address the inequities exacerbated by the pandemic . We invested in training and development for thousands of colleagues , opening new career opportunities . In addition to timely support and advice to customers and clients , we also continue to work with governments to facilitate access to relief programs and introduce new initiatives to help those most impacted by the pandemic , " added Masrani . Canadian Retail Canadian Retail reported net income was $ 2,037 million , an increase of 14 % compared with the first quarter last year , reflecting lower provisions for credit losses ( PCL ) and higher revenue . On an adjusted basis , net income was $ 2,037 million , an increase of 12 % year - over - year . Revenue increased 1 % , reflecting higher loan and deposit volumes , higher transaction and fee - based revenue in the Wealth business , and higher insurance revenue , partially offset by lower margins . PCL decreased $ 249 million from the prior year , reflecting lower performing and impaired PCLs . Reported expenses increased 1 % , with higher volume - driven expenses , partially offset by prior year charges related to the Greystone acquisition . Business momentum was very good this quarter , reflecting strong mortgage originations and chequing account growth in the Personal Bank , record retail net asset growth across our Wealth franchise , and solid Insurance premium growth . Canadian Retail continued to serve customers and clients through their channel of choice with an expanded array of digital and advice capabilities . New and existing self - serve options made it easier for customers to bank conveniently from the safety of their homes . TD Insurance saw increased take - up of its digital term life applications , and the Personal Bank introduced new mobile tools for virtual appointments with its Ready to Invest portal and enhanced the ability to buy mutual funds and GICs online . The Bank continued to support business customers in accessing the latest Canada Emergency Business Account ( CEBA ) program features . U.S. Retail U.S. Retail net income was $ 1,000 million ( US $ 776 million ) , a decrease of 13 % compared with the same quarter last year . Schwab contributed $ 209 million ( US $ 161 million ) in earnings to the segment , compared with the contribution of $ 201 million ( US $ 152 million ) from TD Ameritrade in the first quarter last year . The U.S. Retail Bank , which excludes the Bank's investment in Schwab , reported net income of $ 791 million ( US $ 615 million ) , a decrease of 16 % from the same quarter last year . Revenue declined 8 % as loan and deposit growth were more than offset by lower deposit margins and fee income . PCL was $ 135 million ( US $ 103 million ) , a decrease of $ 184 million ( US $ 140 million ) compared with the first quarter last year , reflecting lower performing and impaired PCLs . Expenses increased 6 % , primarily reflecting store optimization costs . The U.S. Retail Bank continued to deliver new capabilities and solutions to enhance the customer experience this quarter . TD Bank , America's Most Convenient BankⓇ merged the products , services and expertise of the Commercial and Corporate and Specialty Banking teams to provide a more comprehensive and scaled offering for commercial customers . The Bank also facilitated access to renewed funding for its small business customers through the Paycheck Protection Program ( PPP ) implemented by the Small Business Administration . In addition , TD Auto Finance received the highest ranking in Dealer Satisfaction in the National Banking category , according to the J.D. Power 2020 U.S. Dealer Financing Satisfaction StudySM TD BANK GROUP FIRST QUARTER 2021 ⚫ REPORT TO SHAREHOLDERS Page 1