TD Bank Group (“TD” or the “Bank”) (TSX: TD) and (NYSE: TD) released today on its website (www.td.com/investor) an abridged version of its quarterly and annual supplemental financial information for the two years ended October 31, 2020, reflecting two presentation changes that the Bank has adopted beginning in the first quarter of 2021 on a retrospective basis. The updated supplemental financial information, incorporating the anticipated presentation changes, is being posted to the Bank’s website in order to assist investors in understanding these presentation changes.
First, the Bank changed its accounting policy for the presentation of mark-to-market changes on hedging instruments designated in certain fair value hedge accounting relationships, re-classifying the portion excluded from the hedge accounting designation to net interest income from non-interest income. With the re-classification, changes in the fair value of the hedged item and related hedging instrument (excluding hedge ineffectiveness) are presented in the same lines on the Consolidated Statement of Income. The presentation change impacts interest income, interest expense, other income (loss), and net interest margin for the Corporate segment and the consolidated Bank, with no change in total revenue. Second, the Bank has redefined several non-interest expense lines and re-aligned certain expenses across them, with no change to total non-interest expenses.
Neither of the presentation changes affects segment or consolidated Bank net income. As noted above, TD intends to adopt these presentation changes beginning in the first quarter of 2021 on a retrospective basis.
The Supplemental Financial Information package for the first quarter of 2021 may reflect further refinements.
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