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TD TD Bank Group Reports Second Quarter 2021 Results Report to Shareholders . Three and Six months ended April 30 , 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 . SECOND QUARTER FINANCIAL HIGHLIGHTS , compared with the second quarter last year : • Reported diluted earnings per share were $ 1.99 , compared with $ 0.80 . • Adjusted diluted earnings per share were $ 2.04 , compared with $ 0.85 . • Reported net income was $ 3,695 million , compared with $ 1,515 million . • Adjusted net income was $ 3,775 million , compared with $ 1,599 million . YEAR - TO - DATE FINANCIAL HIGHLIGHTS , six months ended April 30 , 2021 , compared with the corresponding period last year : • • Reported diluted earnings per share were $ 3.76 , compared with $ 2.42 . Adjusted diluted earnings per share were $ 3.86 , compared with $ 2.51 . • Reported net income was $ 6,972 million , compared with $ 4,504 million . • Adjusted net income was $ 7,155 million , compared with $ 4,671 million . SECOND QUARTER ADJUSTMENTS ( ITEMS OF NOTE ) The second quarter reported earnings figures included the following items of note : • Amortization of acquired intangibles of $ 69 million ( $ 62 million after - tax or 3 cents per share ) , compared with $ 68 million ( $ 59 million after - tax or 3 cents per share ) in the second quarter last year . • Acquisition and integration charges related to the Schwab transaction of $ 19 million ( $ 18 million after - tax or 1 cent per share ) . TORONTO , May 27 , 2021 - TD Bank Group ( " TD " or the " Bank ” ) today announced its financial results for the second quarter ended April 30 , 2021. Reported earnings were $ 3.7 billion , up 144 % compared with the second quarter last year , and adjusted earnings were $ 3.8 billion , up 136 % . " TD reported strong results in the second quarter , reflecting the underlying strength of our diversified businesses , improving economic conditions and our prudent approach to managing risk , " said Bharat Masrani , Group President and CEO , TD Bank Group . " We continued to invest in our people , capabilities and technology to position our business for growth as economies re - open and consumer and business activity recovers . " " While we are encouraged by the progress being made on vaccinations , COVID - 19 continues to be a factor in our lives and our focus remains on the safety of our people and on supporting the evolving needs of our customers and clients , " added Masrani . " As we look toward the future , we will continue to advance our strategy and contribute to a robust and inclusive recovery , guided by our purpose to enrich the lives of our customers , colleagues and communities . " Canadian Retail Canadian Retail reported net income was $ 2,182 million , an increase of 86 % compared with the second quarter last year , mainly reflecting lower provisions for credit losses ( PCL ) and record results in wealth and insurance . Revenue increased 1 % , reflecting growth in non - interest income and strong loan and deposit volumes , partially offset by lower margins and premium rebates for customers in the insurance business . PCL was lower by $ 1,190 million from the prior year , reflecting lower impaired and performing PCL . Reported expenses increased 4 % , with higher volume - driven and employee - related expenses , partially offset by prior year charges related to the Greystone acquisition . Business momentum accelerated this quarter , with mortgage originations up strongly , credit card transactions rising , and good account growth across all of the businesses . TD Insurance continued to take market share , becoming the third largest home and auto personal insurance provider in Canada , with strong customer engagement in its end - to - end digital capabilities . For the fourth year in a row , TD Auto Finance was ranked Highest in Dealer Satisfaction among Non - Captive Lenders with Retail Credit by J.D. Power . Canadian Retail continues to invest in its advice and service capabilities to help customers navigate change and plan for their financial future through personalized advice and tools . TD was also recognized by the Business Intelligence Group for its Al - powered digital experiences and , as of April 2021 , continues to lead in the number of Interac e - Transfer and Flash transactions . U.S. Retail U.S. Retail net income was $ 1,316 million ( US $ 1,047 million ) , an increase of 292 % compared with the second quarter last year . The Bank's investment in The Charles Schwab Corporation ( " Schwab ” ) contributed $ 246 million ( US $ 194 million ) in earnings , compared with the contribution of $ 234 million ( US $ 174 million ) from TD Ameritrade a year ago . The U.S. Retail Bank , which excludes the Bank's investment in Schwab , reported net income of $ 1,070 million ( US $ 853 million ) , an increase of 949 % from the second quarter last year , mainly reflecting lower PCL . In U.S. dollars , revenue increased 2 % reflecting higher non - interest income , partially offset by lower deposit margins . PCL was lower by US $ 987 million ( $ 1,350 million ) reflecting lower impaired and performing PCL . Expenses increased 4 % , reflecting store optimization costs and higher employee - related expenses , partly offset by lower legal provisions . In Canadian dollars , revenue and expenses declined 7 % and 5 % , respectively , primarily as a result of appreciation in the Canadian dollar since the second quarter last year . The U.S. Retail Bank continued to advance key strategic initiatives to enhance the customer experience this quarter , introducing the new Double Up Credit Card with one of the most valuable cash back offerings in the market . For small business customers , TD continued to facilitate access to Small Business Administration ( SBA ) Paycheck Protection Program ( PPP ) financing , ranking seventh nationwide through Round 2 of the program . TD Bank , America's Most Convenient BankⓇ was also proud to be recognized by Forbes as a Best Employer for Diversity 2021 for the third consecutive year . TD BANK GROUP SECOND QUARTER 2021 ⚫ REPORT TO SHAREHOLDERS Page 1