TD Bank (TD) NBF’s 24th Annual Financial Services Conference summary

Segment reporting and business strategy

• Reporting structure was changed in late 2022 to separate Canadian P&C from wealth management and insurance for simplicity and alignment with underlying assets.

• Discrete business line metrics are now set and reported quarterly for personal and commercial banking, providing both segment-level simplicity and business-level granularity.

Net interest margin (NIM) and outlook

• NIM has remained stable, with recent quarters showing slight sequential increases due to deposit mix and favorable pricing on new mortgage cohorts.

• Anticipates potential NIM expansion in the back half of the year as higher-margin mortgage cohorts accumulate and older, lower-margin ones roll off.

• Fundamentals support possible NIM expansion into late 2026, with growth potentially extending into 2027.

Product strategy and customer retention

• HELOC FlexLine product has been reinvigorated with a focus on specialization and robust advice, leading to higher customer retention compared to traditional mortgages.

• Variable rate mortgage products maintain fixed payments during the term, with resets at renewal to manage amortization and credit quality.