TORONTO, May 5, 2023
/CNW/ - TD Bank Group ("TD" or "the Bank") (TSX: TD) (NYSE:
TD) today confirmed it entered into an amended Insured Deposit
Account (IDA) Agreement with The Charles Schwab Corporation
("Schwab"). TD and Schwab amended the IDA to reflect the current
market and interest rate environment. In comparison to the existing
agreement, the revised agreement extends the term by three years to
July 1, 2034, and provides for lower
deposit balances in its first six years, for higher balances in the
latter years. Specifically, until September
2025, the aggregate amount of fixed rate obligations will
serve as the floor. Thereafter, the floor will be set at
US$60 billion up from US$50 billion in the existing
agreement.
This robust agreement provides TD with greater certainty around
future deposit balances while providing Schwab additional
flexibility and strengthening TD's partnership with Schwab.
"We are pleased to further extend our agreement with Schwab,"
said Bharat Masrani, Group President and CEO, TD Bank Group. "Our
relationship with Schwab, one of the leading investment services
firms in the U.S., delivers strategic and financial value to TD and
our shareholders."
About TD
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD"). TD is the fifth largest bank
in North America by assets and serves over 27 million
customers in four key businesses operating in a number of locations
in financial centres around the globe: Canadian Personal and
Commercial Banking, including TD Canada Trust and TD Auto Finance
Canada; U.S. Retail, including TD Bank, America's Most Convenient
Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an
investment in The Charles Schwab Corporation; Wealth Management and
Insurance, including TD Wealth (Canada), TD Direct Investing, and TD
Insurance; and Wholesale Banking, including TD Securities. TD also
ranks among the world's leading online financial services firms,
with more than 15 million active online and mobile customers. TD
had $1.9 trillion in assets on January 31, 2023. The
Toronto-Dominion Bank trades under the symbol "TD" on
the Toronto and New York Stock Exchanges.
Caution Regarding Forward-Looking
Statements
From time to time, the Bank (as defined in this document) makes
written and/or oral forward-looking statements, including in this
document, in other filings with Canadian regulators or the United States (U.S.) Securities and
Exchange Commission (SEC), and in other communications. In
addition, representatives of the Bank may make forward-looking
statements orally to analysts, investors, the media and others. All
such statements are made pursuant to the "safe harbour" provisions
of, and are intended to be forward-looking statements under,
applicable Canadian and U.S. securities legislation, including the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements made in this document, the Management's Discussion and
Analysis ("2022 MD&A") in the Bank's 2022 Annual Report under
the heading "Economic Summary and Outlook", under the headings "Key
Priorities for 2023" and "Operating Environment and Outlook" for
the Canadian Personal and Commercial Banking, U.S. Retail, Wealth
Management and Insurance, and Wholesale Banking segments, and under
the heading "2022 Accomplishments and Focus for 2023" for the
Corporate segment, and in other statements regarding the Bank's
objectives and priorities for 2023 and beyond and strategies to
achieve them, the regulatory environment in which the Bank
operates, and the Bank's anticipated financial performance.
Forward-looking statements are typically identified by words such
as "will", "would", "should", "believe", "expect", "anticipate",
"intend", "estimate", "plan", "goal", "target", "may", and "could".
By their very nature, these forward-looking statements require the
Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include general business
and economic conditions in the regions in which the Bank operates;
geopolitical risk; inflation, rising rates and recession; the
economic, financial, and other impacts of pandemics, including the
COVID-19 pandemic; the ability of the Bank to execute on long-term
strategies and shorter-term key strategic priorities, including the
successful completion and integration of acquisitions and
dispositions, business retention plans, and strategic plans;
technology and cyber security risk (including cyber-attacks, data
security breaches or technology failures) on the Bank's information
technology, internet, network access or other voice or data
communications systems or services; model risk; fraud activity; the
failure of third parties to comply with their obligations to the
Bank or its affiliates, including relating to the care and control
of information, and other risks arising from the Bank's use of
third-party service providers; the impact of new and changes to, or
application of, current laws and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance; regulatory oversight and compliance risk; increased
competition from incumbents and new entrants (including Fintechs
and big technology competitors); shifts in consumer attitudes and
disruptive technology; exposure related to significant litigation
and regulatory matters; ability of the Bank to attract, develop,
and retain key talent; changes to the Bank's credit ratings;
changes in foreign exchange rates, interest rates, credit spreads
and equity prices; increased funding costs and market volatility
due to market illiquidity and competition for funding; Interbank
Offered Rate (IBOR) transition risk; critical accounting estimates
and changes to accounting standards, policies, and methods used by
the Bank; existing and potential international debt crises;
environmental and social risk (including climate change); and the
occurrence of natural and unnatural catastrophic events and claims
resulting from such events. The Bank cautions that the preceding
list is not exhaustive of all possible risk factors and other
factors could also adversely affect the Bank's results. For more
detailed information, please refer to the "Risk Factors and
Management" section of the 2022 MD&A, as may be updated in
subsequently filed quarterly reports to shareholders and news
releases (as applicable) related to any events or transactions
discussed under the heading "Significant Acquisitions" or
"Significant and Subsequent Events, and Pending Acquisitions" in
the relevant MD&A, which applicable releases may be found on
www.td.com. All such factors, as well as other uncertainties and
potential events, and the inherent uncertainty of forward-looking
statements, should be considered carefully when making decisions
with respect to the Bank. The Bank cautions readers not to place
undue reliance on the Bank's forward-looking statements. Material
economic assumptions underlying the forward-looking statements
contained in this document are set out in the 2022 MD&A under
the heading "Economic Summary and Outlook", under the headings "Key
Priorities for 2023" and "Operating Environment and Outlook" for
the Canadian Personal and Commercial Banking, U.S. Retail, Wealth
Management and Insurance, and Wholesale Banking segments, and under
the heading "2022 Accomplishments and Focus for 2023" for the
Corporate segment, each as may be updated in subsequently filed
quarterly reports to shareholders. Any forward-looking statements
contained in this document represent the views of management only
as of the date hereof and are presented for the purpose of
assisting the Bank's shareholders and analysts in understanding the
Bank's financial position, objectives and priorities and
anticipated financial performance as at and for the periods ended
on the dates presented, and may not be appropriate for other
purposes. The Bank does not undertake to update any forward-looking
statements, whether written or oral, that may be made from time to
time by or on its behalf, except as required under applicable
securities legislation.
SOURCE TD Bank Group