Earnings News Release • Three and six months ended April 30, 2024 This quarterly Earnings News Release should be read in conjunction with the Bank's unaudited second quarter 2024 Report to Shareholders for the three and six months ended April 30, 2024, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on our website at http://www.td.com/investor/. This analysis is dated May 22, 2024. Unless otherwise indicated, all amounts are expressed in Canadian dollars, and have been primarily derived from the Bank's Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been revised to conform with the presentation adopted in the current period. Additional information relating to the Bank is available on the Bank's website at http://www.td.com, as well as on SEDAR+ at http://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's (SEC) website at http://www.sec.gov (EDGAR filers section).      Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures. For additional information about the Bank's use of non-GAAP financial measures, refer to "Significant Events" and "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document. SECOND QUARTER FINANCIAL HIGHLIGHTS, compared with the second quarter last year: Reported diluted earnings per share were $1.35, compared with $1.69. Adjusted diluted earnings per share were $2.04, compared with $1.91. Reported net income was $2,564 million, compared with $3,306 million. Adjusted net income was $3,789 million, compared with $3,707 million. YEAR-TO-DATE FINANCIAL HIGHLIGHTS, six months ended April 30, 2024, compared with the corresponding period last year: Reported diluted earnings per share were $2.89, compared with $2.52. Adjusted diluted earnings per share were $4.04, compared with $4.14. Reported net income was $5,388 million, compared with $4,887 million. Adjusted net income was $7,426 million, compared with $7,861 million. SECOND QUARTER ADJUSTMENTS (ITEMS OF NOTE) The second quarter reported earnings figures included the following items of note: Amortization of acquired intangibles of $72 million ($62 million after-tax or 4 cents per share), compared with $79 million ($67 million after-tax or 3 cents per share) in the second quarter last year. Acquisition and integration charges related to the Schwab transaction of $21 million ($16 million after-tax or 1 cent per share), compared with $30 million ($26 million after-tax or 1 cent per share) in the second quarter last year. Restructuring charges of $165 million ($122 million after-tax or 7 cents per share). Acquisition and integration charges related to the Cowen acquisition of $102 million ($80 million after-tax or 4 cents per share), compared with $73 million ($63 million after-tax or 4 cents per share) in the second quarter last year. Impact from the terminated FHN acquisition-related capital hedging strategy of $64 million ($48 million after-tax or 3 cents per share), compared with $134 million ($101 million after-tax or 6 cents per share) in the second quarter last year. Civil matter provision/Litigation settlement of $274 million ($205 million after-tax or 11 cents per share), compared with $39 million ($28 million after-tax or 2 cents per share) in the second quarter last year. FDIC special assessment of $103 million ($77 million after-tax or 4 cents per share).  Provision for investigations related to the Bank's AML program of $615 million ($615 million after-tax or 35 cents per share). TORONTO, May 23, 2024 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the second quarter ended April 30, 2024. Reported earnings were $2.6 billion, down 22% compared with the second quarter last year, and adjusted earnings were $3.8 billion, up 2%. "TD delivered strong second quarter results, with earnings of $3.8 billion and solid momentum across our franchise. We delivered significant positive operating leverage while continuing to invest in our business, including our risk and control infrastructure," said Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group. Canadian Personal and Commercial Banking delivered a strong quarter driven by continued volume growth and positive operating leverageCanadian Personal and Commercial Banking net income was $1,739 million, an increase of 7% compared to the second quarter last year. The increase reflects revenue growth, partially offset by higher provisions for credit losses and non-interest expenses. Revenue was $4,839 million, an increase of 10%, driven by volume growth and margin expansion. Canadian Personal and Commercial Banking continued to build momentum, delivering another strong quarter for New to Canada account openings. TD increased its support for international students with an agreement with HDFC, India's leading private sector bank, to help attract new customers with a simplified banking experience. The Bank also established a new collaboration with ApplyBoard, a Canadian educational organization that helps international students prepare their finances to study in Canada. In addition, TD Auto Finance was ranked #1 in Dealer Satisfaction with Non-Prime and Prime Credit Non-Captive Automotive Financing Lenders, according to the J.D. Power 2024 Canada Dealer Financing Satisfaction Study1. ____________________________________________ 1 TD Auto Finance received the highest score in the retail non-captive non-prime segment and the retail non-captive prime segment in the J.D. Power 2024 Canada Dealer Financing Satisfaction Study, which measure Canadian auto dealers' satisfaction with their auto finance providers. Visit jdpower.com/awards for more details. The U.S. Retail Bank delivered operating momentum with sequential earnings and loan growth in a challenging environment U.S. Retail reported net income was $580 million (US$433 million), a decrease of 59% (58% in U.S. dollars) compared with the second quarter last year. On an adjusted basis, net income was $1,272 million, a decline of 16% (17% in U.S. dollars). TD Bank's investment in The Charles Schwab Corporation ("Schwab") contributed $183 million in earnings, a decrease of 27% (26% in U.S. dollars) compared with the second quarter last year. The U.S. Retail Bank, which excludes the Bank's investment in Schwab, reported net income of $397 million (US$297 million), a decrease of 66% (65% in U.S. dollars) from the second quarter last year, primarily reflecting provisions for investigations related to the Bank's anti-money laundering program and the Federal Deposit Insurance Corporation (FDIC) Special Assessment, partially offset by acquisition and integration-related charges for the terminated First Horizon transaction in the second quarter last year. On an adjusted basis net income was $1,089 million (US$803 million), a decrease of 14% (15% in U.S. dollars) from the second quarter last year, primarily reflecting higher PCL and lower revenue. The U.S. Retail Bank continued to deliver loan growth while maintaining its through-the-cycle underwriting standards, with total average loan balances up 7% compared with the second quarter last year and up 1% from last quarter. Excluding sweep deposits, total personal and business deposit average balances were down 1% year-over-year, reflecting competitive market conditions, while quarter–over–quarter, personal and business deposit average balances were flat. Overall, the U.S. Retail Bank delivered balance sheet stability in a challenging environment. During the quarter, TD Bank, America's Most Convenient Bank® (TD AMCB) launched TD Complete Checking and TD Early Pay, offering customers more flexible banking options, including earlier access to eligible direct deposits. TD AMCB surpassed five million active mobile customers while continuing to deliver new features and capabilities that enhance the customer experience. TD AMCB was ranked 9th on Forbes' list of America's Best Employers for Diversity 2024, leading its peers as the highest ranked financial institution. Wealth Management and Insurance results reflect strong business momentumWealth Management and Insurance net income was $621 million, an increase of 19% compared with the second quarter last year, as positive top-line momentum was partially offset by higher insurance service expenses. This quarter's revenue growth of 11% reflects insurance premium growth, and higher fee-based and transaction revenue in the Wealth Management business. Wealth Management and Insurance continued to invest in client-centric innovation this quarter. TD Direct Investing completed its migration of most active traders to the new TD Active Trader platform and TD Wealth Advice continued to gain market share as it grows its advisor network2. TD Asset Management launched seven new actively managed fixed income ETFs, showcasing the value of its proprietary independent credit research capabilities, and offering investors the potential to earn a high rate of interest income. In TD Insurance, Small Business Insurance expanded its national reach to new customer segments including business professionals, healthcare, retail, small manufacturing, and hospitality.  ____________________________________________ 2 Investor Economics Retail Brokerage and Distribution Quarterly Update, Winter 2023. Wholesale Banking delivered record revenue reflecting broad-based growth across the businessWholesale Banking reported net income for the quarter was $361 million, an increase of $211 million compared with the second quarter last year, reflecting higher revenues, partially offset by higher non-interest expenses. On an adjusted basis, net income was $441 million, an increase of $228 million, or 107%. Revenue for the quarter was $1,940 million, an increase of $523 million, or 37%, compared with the second quarter last year, reflecting higher trading-related revenue, underwriting fees, and lending revenue. On April 1, TD Securities and TD Cowen achieved an important milestone with the implementation of a unified Investment Banking, Capital Markets and Research platform, integrating coverage models and streamlining delivery of capabilities for clients. Enhancements to TD's anti-money laundering (AML) program The Bank has been cooperating with U.S. regulators and authorities in good faith for many months and is working diligently to bring these investigations to resolution so that investors can have more clarity. A comprehensive overhaul of TD's U.S. AML program is well underway, and will strengthen our program globally. CapitalTD's Common Equity Tier 1 Capital ratio was 13.4%. Conclusion"Our businesses in Canada, the United States and across the globe are well-positioned to continue to meet the needs of our nearly 28 million customers and clients. I would like to thank our 95,000 TD bankers for everything they do to deliver for all of our stakeholders," added Masrani. The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements" on page 3. Caution Regarding Forward-Looking StatementsFrom time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management's Discussion and Analysis ("2023 MD&A") in the Bank's 2023 Annual Report under the heading "Economic Summary and Outlook", under the headings "Key Priorities for 2024" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, and under the heading "2023 Accomplishments and Focus for 2024" for the Corporate segment, and in other statements regarding the Bank's objectives and priorities for 2024 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank's anticipated financial performance. Forward-looking statements can be identified by words such as "anticipate", "believe", "could", "estimate", "expect", "forecast", "goal", "intend", "may", "outlook", "plan", "possible", "potential", "predict", "project", "should", "target", "will", and "would" and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank's control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause, individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including technology, cyber security, and infrastructure), model, insurance, liquidity, capital adequacy, legal, regulatory compliance and conduct, reputational, environmental and social, and other risks. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates; geopolitical risk; inflation, rising rates and recession; regulatory oversight and compliance risk; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; technology and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank's technologies, systems and networks, those of the Bank's customers (including their own devices), and third parties providing services to the Bank; model risk; fraud activity; insider risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; the impact of new and changes to, or application of, current laws, rules and regulations, including without limitation tax laws, capital guidelines and liquidity regulatory guidance; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; environmental and social risk (including climate change); exposure related to significant litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes to the Bank's credit ratings; changes in foreign exchange rates, interest rates, credit spreads and equity prices; the interconnectivity of Financial Institutions including existing and potential international debt crises; increased funding costs and market volatility due to market illiquidity and competition for funding; Interbank Offered Rate (IBOR) transition risk; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; the economic, financial, and other impacts of pandemics; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. For more detailed information, please refer to the "Risk Factors and Management" section of the 2023 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the heading "Significant Events" in the relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank's forward-looking statements.Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2023 MD&A under the heading "Economic Summary and Outlook", under the headings "Key Priorities for 2024" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, and under the heading "2023 Accomplishments and Focus for 2024" for the Corporate segment, each as may be updated in subsequently filed quarterly reports to shareholders.Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable law. This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release.   TABLE 1: FINANCIAL HIGHLIGHTS (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2024 2024 2023 2024 2023 Results of operations Total revenue – reported1 $ 13,819 $ 13,714 $ 12,397 $ 27,533 $ 24,598 Total revenue – adjusted1,2 13,883 13,771 12,570 27,654 25,647 Provision for (recovery of) credit losses 1,071 1,001 599 2,072 1,289 Insurance service expenses (ISE)1 1,248 1,366 1,118 2,614 2,282 Non-interest expenses – reported1 8,401 8,030 6,756 16,431 14,868 Non-interest expenses – adjusted1,2 7,084 7,125 6,462 14,209 12,799 Net income – reported1 2,564 2,824 3,306 5,388 4,887 Net income – adjusted1,2 3,789 3,637 3,707 7,426 7,861 Financial position (billions of Canadian dollars) Total loans net of allowance for loan losses $ 928.1 $ 904.3 $ 849.6 $ 928.1 $ 849.6 Total assets 1,966.7 1,910.9 1,924.8 1,966.7 1,924.8 Total deposits 1,203.8 1,181.3 1,189.4 1,203.8 1,189.4 Total equity 112.0 112.4 116.2 112.0 116.2 Total risk-weighted assets3 602.8 579.4 549.4 602.8 549.4 Financial ratios Return on common equity (ROE) – reported1,4 9.5 % 10.9 % 12.4 % 10.2 % 9.1 % Return on common equity – adjusted1,2 14.5 14.1 14.0 14.3 15.0 Return on tangible common equity (ROTCE)1,2,4 13.0 14.9 16.5 13.9 12.3 Return on tangible common equity – adjusted1,2 19.2 18.7 18.3 18.9 19.7 Efficiency ratio – reported1,4 60.8 58.6 54.5 59.7 60.4 Efficiency ratio – adjusted, net of ISE1,2,4,5 56.1 57.4 56.4 56.7 54.8 Provision for (recovery of) credit losses as a % of net      average loans and acceptances 0.47 0.44 0.28 0.45 0.30 Common share information – reported (Canadian dollars) Per share earnings1      Basic $ 1.35 $ 1.55 $ 1.69 $ 2.90 $ 2.52      Diluted 1.35 1.55 1.69 2.89 2.52 Dividends per share 1.02 1.02 0.96 2.04 1.92 Book value per share4 57.69 57.34 57.08 57.69 57.08 Closing share price6 81.67 81.67 82.07 81.67 82.07 Shares outstanding (millions)      Average basic 1,762.8 1,776.7 1,828.3 1,769.8 1,824.4      Average diluted 1,764.1 1,778.2 1,830.3 1,771.2 1,826.6      End of period 1,759.3 1,772.1 1,838.5 1,759.3 1,838.5 Market capitalization (billions of Canadian dollars) $ 143.7 $ 144.7 $ 150.9 $ 143.7 $ 150.9 Dividend yield4 5.1 % 4.9 % 4.5 % 5.0 % 4.4 % Dividend payout ratio4 75.6 65.7 56.7 70.3 76.2 Price-earnings ratio1,4 13.8 13.1 10.4 13.8 10.4 Total shareholder return (1 year)4 4.5 (6.9) (7.5) 4.5 (7.5) Common share information – adjusted (Canadian dollars)1,2 Per share earnings1      Basic $ 2.04 $ 2.01 $ 1.91 $ 4.05 $ 4.15      Diluted 2.04 2.00 1.91 4.04 4.14 Dividend payout ratio 49.9 % 50.7 % 50.2 % 50.3 % 46.2 % Price-earnings ratio1 10.5 10.6 9.8 10.5 9.8 Capital ratios3 Common Equity Tier 1 Capital ratio 13.4 % 13.9 % 15.3 % 13.4 % 15.3 % Tier 1 Capital ratio 15.1 15.7 17.3 15.1 17.3 Total Capital ratio 17.1 17.6 19.7 17.1 19.7 Leverage ratio 4.3 4.4 4.6 4.3 4.6 TLAC ratio 30.6 30.8 34.2 30.6 34.2 TLAC Leverage ratio 8.7 8.6 9.0 8.7 9.0   1 For the three and six months ended April 30, 2023, certain amounts have been restated for the adoption of IFRS 17, Insurance Contracts (IFRS 17). Refer to Note 2 of the Bank's second quarter 2024 Interim Consolidated Financial Statements for further details. 2 The Toronto-Dominion Bank ("TD" or the "Bank") prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current 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 and non-GAAP ratios to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for "items of note". Refer to "Significant Events" and "How We Performed" sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. 3  These measures have been included in this document in accordance with the Office of the Superintendent of Financial Institutions Canada's (OSFI's) Capital Adequacy Requirements, Leverage Requirements, and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the "Capital Position" section in the second quarter of 2024 MD&A for further details. 4 For additional information about this metric, refer to the Glossary in the second quarter of 2024 MD&A, which is incorporated by reference. 5 Efficiency ratio – adjusted, net of ISE is calculated by dividing adjusted non‑interest expenses by adjusted total revenue, net of ISE. Adjusted total revenue, net of ISE – Q2 2024: $12,635 million, Q1 2024: $12,405 million, Q2 2023: $11,452 million, 2024 YTD: $25,040 million, 2023 YTD: $23,365 million. Effective the first quarter of 2024, the composition of this non-GAAP ratio and the comparative amounts have been revised. 6  Toronto Stock Exchange closing market price. SIGNIFICANT EVENTS  a) Provision for Investigations Related to the Bank's AML ProgramIn the second quarter of 2024, the Bank recorded an initial provision of $615 million (US$450 million) in connection with discussions with one of its U.S. regulators, related to previously disclosed regulatory and law enforcement investigations of the Bank's U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) program. For further details, refer to Note 19 of the Bank's second quarter 2024 Interim Consolidated Financial Statements. b) Restructuring ChargesThe Bank continued to undertake certain measures in the second quarter of 2024 to reduce its cost base and achieve greater efficiency. In connection with these measures, the Bank incurred $165 million of restructuring charges which primarily relate to employee severance and other personnel-related costs and real estate optimization. Next quarter, we expect to incur additional restructuring charges of approximately $50 million, and to conclude our restructuring program. c) Federal Deposit Insurance Corporation Special AssessmentOn November 16, 2023, the FDIC announced a final rule that implements a special assessment to recover the losses to the Deposit Insurance Fund arising from the protection of uninsured depositors during the U.S. bank failures in the spring of 2023. The special assessment resulted in the recognition of $411 million (US$300 million) pre-tax in non-interest expenses in the first quarter of the Bank's fiscal 2024.      On February 23, 2024, the FDIC notified all institutions subject to the special assessment that its estimate of total losses has increased compared to the amount communicated with the final rule in November 2023. Accordingly, the Bank recognized an additional expense for the special assessment of $103 million (US$75 million) in the second quarter of the Bank's fiscal 2024. The final amount of the Bank's special assessment may be further updated as the FDIC determines the actual losses to the Deposit Insurance Fund. The FDIC plans to provide institutions subject to the special assessment with an updated estimate with its first quarter 2024 special assessment invoice, to be released in June 2024. HOW WE PERFORMED HOW THE BANK REPORTSThe Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS and refers to results prepared in accordance with IFRS as "reported" results. Non-GAAP and Other Financial MeasuresIn addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios, supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as "adjusted" results, are utilized to assess the Bank's businesses and to measure the Bank's overall performance. To arrive at adjusted results, the Bank adjusts for "items of note" from reported results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted basic and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. 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 non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank's financial performance and position, and capital management measures depict the Bank's capital position, and both are explained in this document where they first appear. U.S. Strategic CardsThe Bank's U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank's Interim Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate's reported net income (loss). The net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements. Investment in The Charles Schwab Corporation and IDA AgreementOn October 6, 2020, the Bank acquired an approximately 13.5% stake in The Charles Schwab Corporation ("Schwab") following the completion of Schwab's acquisition of TD Ameritrade Holding Corporation ("TD Ameritrade") of which the Bank was a major shareholder (the "Schwab transaction"). On August 1, 2022, the Bank sold 28.4 million non-voting common shares of Schwab, at a price of US$66.53 per share for proceeds of $2.5 billion (US$1.9 billion), which reduced the Bank's ownership interest in Schwab to approximately 12.0%.      The Bank accounts for its investment in Schwab using the equity method. The U.S. Retail segment reflects the Bank's share of net income from its investment in Schwab. The Corporate segment net income (loss) includes amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab. The Bank's share of Schwab's earnings available to common shareholders is reported with a one-month lag. For further details, refer to Note 7 of the Bank's second quarter 2024 Interim Consolidated Financial Statements.      On November 25, 2019, the Bank and Schwab signed an insured deposit account agreement (the "2019 Schwab IDA Agreement"), with an initial expiration date of July 1, 2031. Under the 2019 Schwab IDA Agreement, starting July 1, 2021, Schwab had the option to reduce the deposits by up to US$10 billion per year (subject to certain limitations and adjustments), with a floor of US$50 billion. In addition, Schwab requested some further operational flexibility to allow for the sweep deposit balances to fluctuate over time, under certain conditions and subject to certain limitations.      On May 4, 2023, the Bank and Schwab entered into an amended insured deposit account agreement (the "2023 Schwab IDA Agreement"), which replaced the 2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab IDA Agreement, the Bank continues to make sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits over FROA are designated as floating-rate obligations. In comparison to the 2019 Schwab IDA Agreement, the 2023 Schwab IDA Agreement extends the initial expiration date by three years to July 1, 2034 and provides for lower deposit balances in its first six years, followed by higher balances in the later years. Specifically, until September 2025, the aggregate FROA will serve as the floor. Thereafter, the floor will be set at US$60 billion. In addition, Schwab has the option to buy down up to $6.8 billion (US$5 billion) of FROA by paying the Bank certain fees in accordance with the 2023 Schwab IDA Agreement, subject to certain limits. Refer to the "Related Party Transactions" section in the 2023 MD&A for further details.      During the first quarter of 2024, Schwab exercised its option to buy down the remaining $0.7 billion (US$0.5 billion) of the US$5 billion FROA buydown allowance and paid $32 million (US$23 million) in termination fees to the Bank in accordance with the 2023 Schwab IDA Agreement. By the end of the first quarter of 2024, Schwab had completed its buy down of the full US$5 billion FROA buydown allowance and had paid a total of $337 million (US$250 million) in termination fees to the Bank. The fees were intended to compensate the Bank for losses incurred from discontinuing certain hedging relationships and for lost revenues. The net impact was recorded in net interest income. The following table provides the operating results on a reported basis for the Bank.  TABLE 2: OPERATING RESULTS – Reported (millions of Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2024 2024 2023 2024 2023 Net interest income $ 7,465 $ 7,488 $ 7,428 $ 14,953 $ 15,161 Non-interest income1 6,354 6,226 4,969 12,580 9,437 Total revenue1 13,819 13,714 12,397 27,533 24,598 Provision for (recovery of) credit losses 1,071 1,001 599 2,072 1,289 Insurance service expenses1 1,248 1,366 1,118 2,614 2,282 Non-interest expenses1 8,401 8,030 6,756 16,431 14,868 Income before income taxes and share of net income from investment in Schwab1 3,099 3,317 3,924 6,416 6,159 Provision for (recovery of) income taxes1 729 634 859 1,363 1,798 Share of net income from investment in Schwab 194 141 241 335 526 Net income – reported1 2,564 2,824 3,306 5,388 4,887 Preferred dividends and distributions on other equity instruments 190 74 210 264 293 Net income available to common shareholders1 $ 2,374 $ 2,750 $ 3,096 $ 5,124 $ 4,594 1 For the three and six months ended April 30, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank's second quarter 2024 Interim Consolidated Financial Statements for further details. The following table provides a reconciliation between the Bank's adjusted and reported results. For further details refer to the "Significant Events" section. TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income (millions of Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2024 2024