THE TORONTO-DOMINION BANK
EARNINGS COVERAGE ON SUBORDINATED
NOTES AND DEBENTURES,
PREFERRED SHARES CLASSIFIED AS EQUITY,
AND LIABILITIES FOR
PREFERRED SHARES AND OTHER EQUITY INSTRUMENTS
AND CAPITAL
TRUST SECURITIES
FOR THE TWELVE
MONTHS ENDED, OCTOBER 31, 2025
TD Bank Group (“TD” or the “Bank”) dividend
requirements on all its outstanding preferred
shares and other equity instruments in respect
of the twelve months
ended October 31, 2025
and adjusted to a before-tax equivalent using
an effective tax rate of 14.4% for the twelve
months ended October 31, 2025, amounted
to
$660 million. The Bank’s interest and dividend
requirements on all subordinated notes
and debentures, preferred shares and liabilities
for preferred shares and
other equity instruments and capital trust
securities, after adjustment for new issues
and retirement, amounted to $1,189
million for the twelve months ended
October 31, 2025. The Bank’s reported net income,
before interest on subordinated debt and
liabilities for preferred shares and capital
trust securities and income
taxes was $24,166 million for the twelve
months ended October 31, 2025, which was 20.3
times the Bank’s aggregate dividend and interest
requirement for this
On an adjusted basis, the Bank’s net income
before interest on subordinated debt and liabilities
for preferred shares and capital trust securities
and income
taxes for the twelve months ended October
31, 2025, was $19,183 million, which
was 16.1 times the Bank’s aggregate dividend
and interest requirement for this
period.
The Bank prepares its consolidated financial
statements in accordance with International
Financial Reporting Standards (IFRS),
the current generally accepted
accounting principles (GAAP), and refers to results
prepared in accordance with IFRS as
the “reported” results. The Bank also utilizes
non-GAAP financial
measures such as “adjusted” results
(i.e. reported results excluding “items of note”)
and non-GAAP ratios to assess each of
its businesses and measure overall
Bank performance. The Bank believes that non-GAAP
financial measures and non-GAAP ratios
provide the reader with a better understanding
of how
management views the Bank’s performance.
Non-GAAP financial measures and ratios used
in this presentation are not defined terms
under IFRS and, therefore,
may not be comparable to similar terms
used by other issuers. See “Financial Results
Overview”
in the Bank’s 2025 MD&A (available at www.td.com/investor
and
www.sedar+.com), which is incorporated by reference, for
further explanation, reported basis results,
a list of the items of note, and a reconciliation
of adjusted to
reported results.