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Report of the month

March 2010

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TD Bank Financial Toronto, Ontario, Canada Report Facts Company name Toronto-Dominion Bank Fiscal year end: October 31, 2009 Report title: Building on Our Momentum President and CEO: W. Edmund Clark Number of books: One Report length: 154 pages Auditors: Ernst & Young LLP Design: q30 design E-mail: tdshinfo@td.com	Report Rating 3.5/5 (Rating scale below) Profile-Mission (Excerpts, as from the report) The Toronto-Dominion Bank and its subsidiaries are... known as TD Bank Financial Group. The Bank is the sixth largest bank in North America by branches and serves approximately 17 million customers in four key businesses: Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking, Wealth Management, Wholesale Banking. (Annual Report p 18, p 28) (Italics are own company’s words) Key Figures Total assets: $ 557,219 million Total revenue: $ 17,860 million Net interest income: $ 11,326 million Net income: $ 3,120 million Earnings per share: $ 3.49 (basic) Dividends per share: $ 2.44 Return on equity: 8.4% Tier 1 capital ratio: 11.3% Total capital ratio: 14.9% (Source: figures in Canadian dollars, sourced from the annual report) Major Competitors RBC (Royal Bank of Canada) BMO Financial CIBC (Canadian Imperial Bank of Commerce) National Bank of Canada ... and a number of U.S. banks

Triple A > For years we’ve cultivated a conservative risk management philosophy –we only take risks that we understand and that can be managed within an acceptable level. It’s that simple. (CEO’s message to shareholders). We were one of the few global institutions that did not require support from the government. (p 3). > Thorough and superior management discussion and analysis. > Great transparency and historical records about credit portfolio quality, capital position (see Selected Page below), provisions, impaired loans, reconciliation for financial assets and liabilities at fair value, et al. > Outstanding risk management analysis. > Comprehensive and very clear Risk management chapter: each risk category

Double A > Detailed notes to statements. > Ten-year Statistical Review compiles all statements and provides many key ratios.

Simple A > Key Metrics come quickly, but are rather short, don’t show year-on-year changes, and include many footnotes. > Corporate responsibility matters are too briefly reported, yet a separate special report is available.

Some Bs > As Paul Krugman and a few leading economists put it, banking should be boring (again). Does this mean making (mostly) boring reports? We don’t think so. 150-plus pages of which most are deadly dull, made of small line spacing, long tables, footnotes (ah, that fine print!). > For a real profile, wait until p 18 and enlarge (on screen) or wear glasses (on paper). > Building on Our Momentum really sounds hackneyed. We remember some banks having used it before 2007. > Year at a Glance highlights Aaa rated by Moody’s first. Apparently, some still value those ratings. > No direct investor relations contact... and that odd habit to leave it all (or almost) up to a transfer agent.

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Selected Page (p 59 of TD Bank Financial Annual Report 2009)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.