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 JULY 31, 2026
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 July 31, 2026 and adjusted to a before-tax
equivalent using an effective tax rate of approximately
19,6% for the twelve months ended July
31, 2026,
amounted to $732 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 $1,201
million for the twelve months
ended July 31, 2026. The Bank’s reported net income,
before interest on subordinated debt and
liabilities for preferred shares and capital
trust securities and
income taxes was $20,610 million for the
twelve months ended July 31, 2026,
which was 17.2 times the Bank’s aggregate dividend
and interest requirement for
this period.
On an adjusted basis, the Bank’s net income before
interest on subordinated debt and liabilities
for preferred shares and other equity instruments
and capital
trust securities and income taxes for the twelve
months ended July 31, 2026, was $21,994
million, which was 18.3 times the Bank’s aggregate
dividend and
interest requirement for this period.
The Bank prepares its interim 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 “reported” results. The Bank also
utilizes non-GAAP financial
measures such as “adjusted” results
(i.e. reports 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 under
IFRS, and, therefore, may
not be comparable to similar terms used by
other issuers. See “How We Performed” or “How
Our Businesses Performed” sections
of the Bank’s third quarter 2026
MD&A (available at www.td.com/investor and www.sedarplus.ca), which
are incorporated by reference, for further explanation,
reported basis results, a list of the
items of note, and a reconciliation of adjusted
to reported results.