By James Langton

(November 16 – 11:00 ET) – TD Bank is reporting improved operating results for 2000. The bank reports that on a cash basis, operating earnings per share were $3.16 compared to $2.39 in 1999. Return on equity for the year was 18 % compared to 16.7% in 1999.

Full-year cash operating net income of $2 billion was driven by each of TD’s core businesses with $847 million from TD Canada Trust, $778 million from TD Securities, $319 million from TD Waterhouse, and $93 million from TD Asset Management.

For the fourth quarter alone, operating cash earnings per share were 80¢, up from 62¢ in the same period last year. On an operating cash basis, ROE was 18%, compared to 14.9% in Q4 1999.

“The performance of our core businesses in the fourth quarter underscores a year of exceptional growth and progress for TD Bank Financial Group,” said TD chairman and CEO, Charles Baillie.

“Despite recent market volatility, virtually all of our businesses have delivered year-over- year improvements in revenues and operating income. We also took a dramatic step forward in increasing shareholder value with the acquisition of Canada Trust, strengthening the foundation for future growth by creating a retail banking powerhouse and maintaining our leadership in delivering financial services online.”

TD’s provision for credit losses for the quarter was $135 million, unchanged from last quarter, bringing the full-year provision for credit losses to $480 million. At year end, the allowance for credit losses exceeded gross impaired loans by $159 million, compared to a $56 million excess at the end of last quarter. TD’s total accumulated general allowance for credit losses increased slightly to $862 million at October 31, 2000 from $851 million in the prior quarter.

On the investment side of TD’s business, other income reached $1.65 billion this quarter, up $600 million or 57% from the same quarter last year.

Self-directed brokerage revenues from TD Waterhouse increased to $326 million from $235 million last year. Full-service brokerage revenues at TD Evergreen were $57 million, up $21 million or 58% from a year ago.

TDAM grew total assets under management to a record $112 billion, up by 63% from the fourth quarter of 1999, powered by acquisitions such as Canada Trust and Harbour Capital Management, as well as organic growth. This makes TDAM the largest investment manager in Canada, and the third-largest pension fund manager.

Insurance revenues more than tripled from $18 million to $66 million and income from securitizations more than doubled from $29 million to $74 million over the fourth quarter last year.

TD Securities produced trading income increases of 76% to $363 million, compared to $206 million for the same quarter last year. Total trading-related income increased 48% compared to the same quarter last year, although these trading gains were offset by lower net investment securities gains of $33 million compared to $85 million a year ago. The surplus over book value of the investment securities portfolio was $796 million at the end of the year, compared to $394 million a year ago.

Ed Clark, president and chief operating officer of TD Bank, says, “With most other non-retail banking aspects of the integration completed successfully, all of our efforts are now focused on ensuring a successful combination of the two retail branch networks, which begins in early (calendar) 2001.”

Baillie sees continued strong performance from TD. “Although there are some uncertainties in global capital markets and signs of a slight slowing in U.S. economic growth, the fundamentals for continued economic growth remain positive in our key markets in North America and around the world,” Baillie said. “We expect to continue TD’s growth into 2001.”

Fiscal 2000 was a defining year for TD, concluded Baillie. “One year ago, the Canada Trust transaction was awaiting shareholder and regulatory approval. Today, we are firing on all cylinders and are poised to deliver enhanced shareholder value by creating one of the most dynamic financial institutions in North America, with a commitment to building a better bank for our customers.”