Analyst PresentationQ2 1998 Performance

May 28, 1998 Dan Dan MarinangeliMarinangeliSenior Vice PresidentSenior Vice President

BANKFINANCIALGROUP

BANKBANKFINANCIALFINANCIALGROUPGROUP

Quarter Highlightsn Strong Revenue Growth - up 24% vs Q2/97n Other Income higher than Net Interest Incomen EPS at $1.00 up 28 % over Q2/97n Dividend to increase 2 cents in Q3/98 (2nd increase this year)n Credit losses forecast remains at $250 million for 1998.n Tier 1 ratio of 7.1% and total capital ratio of

10.7%n Unrealized securities gains at $ 965 million

EPS Growth:Outperforming

90

100

110

120

130

140

150

Q2/96 Q3/96 Q4/96 Q1/97 Q2/97 Q3/97 Q4/97 Q1/98 Q2/98

TD 4 Bank Peer

Notes: Data has been adjusted to exclude extraordinary items. Q2/98 peer data based on 3 banks.

Scale of 100

90

100

110

120

130

140

150

Q2/96 Q3/96 Q4/96 Q1/97 Q2/97 Q3/97 Q4/97 Q1/98 Q2/98

* Cash basis measurement is based on excluding goodwill expense. Data has been also been adjusted to exclude extraordinary items.

EPS Growth: Cash Basis *Scale of 100

ROE Cash Basis *

14

15

16

17

18

19

20

21

Q2/96 Q3/96 Q4/96 Q1/97 Q2/97 Q3/97 Q4/97 Q1/98 Q2/98

* Cash basis measurement is based on excluding goodwill expense. Data has been also been adjusted to exclude extraordinary items.

%

Net Common Equity to Risk-Weighted Assets: Rank #1

5.0

5.5

6.0

6.5

7.0

7.5

Q2/96 Q3/96 Q4/96 Q1/97 Q2/97 Q3/97 Q4/97 Q1/98 Q2/98

TD 4 Bank Peer

%

Note: Q2/98 peer data based on 3 banks.

General Reserves & Securities Surplus

0.62

1.09 1.051.17

1.37

Q2/97

Q3/97

Q4/97

Q1/98

Q2/98

% of RWA

630

1,062 1,0761,178

1,412

Q2/97

Q3/97

Q4/97

Q1/98

Q2/98

$ Millions

Q2 Peer Average of 3 banks: 1.02%

Strong Asset Quality

0.0

0.4

0.8

1.2

1993 1994 1995 1996 1997 Q1/98 Q2/98

TD 4 Bank Peer

% Ratio of PCL to Loans & BAs

Notes: Q2/98 peer data based on 3 banks. Excludes special general provisions

Margin Contribution

Basis Points Q2/97 Q1/98 Q2/98

1. Earning Assets - Excl.securities 155 152 154 and reverse repos

2. Deposits and equity 136 158 1633. Margin from intermediation 291 310 317

4. Effect of reverse repos , securities, gap earnings, other (51) (89) (110)

5. Total as reported 240 221 207

Expense Rationalization Q2/Q2 Q2/Q1

Reported Increase 20 % 8 %Less:n Investment Banking 11 5

n Wealth Management (base) 10 3

n Pont & Rivkin,Croll, Smith goodwill write-offs (4) (3)

n Other performance driven compensation - 1

Base Bank 3 % 2 %

Key Goals - How Did We Do?

ROE 16 -18% 17.3%

PCL/Loans & BAs 30 bps 22 bps

Efficiency - excl. goodwill 58% 61.0%

Customer service index 82.5 79.9

Goals Q2/98

Key Strategies – Update

Invest in wealthmanagement

business

11

Repositionretail banking

network

22

Build investmentbanking business

– TD Securities

33

Strategy #1Invest in WealthManagement

Wealth Management

224

337

Q2/97 Q2/98

Revenue$ millions

28

43

Q2/97 Q2/98

Net Income$ millions

Excluding Pont acquisition costsWealth Management

Wealth ManagementNet Income as % of Total

10.4%

14.0%

Q2/97 Q2/98

Wealth Management

Excluding Pont acquisition costs

0

50

100

150

200

250

300

350

Q2/96

Q3/96

Q4/96

Q1/97

Q2/97

Q3/97

Q4/97

Q1/98

Q2/98

TDIM

Mutual Funds

Evergreen/ Private Client

DiscountBrokerage

$ millions

Wealth Management

Wealth ManagementRevenue by Component

Mutual Funds

$6

$9

$12

$15

Q2/96 Q4/96 Q2/97 Q4/97 Q2/9816%

17%

18%

19%

20%

Volume Bank Mkt. Share

$ billionsWAF: 1.02% 1.05% 1.09% WAF: 1.02% 1.05% 1.09% 1.12% 1.16% 1.12% 1.16% 1.19% 1.19%

Wealth Management

0

20

40

60

80

100

120

140

Q2/96 Q3/96 Q4/96 Q1/97 Q2/97 Q3/97 Q4/97 Q1/98 Q2/98

TDIM

Mutual Funds

Evergreen/ Private ClientDiscountBrokerage

Wealth Management AssetsUnder Administration

$ billion

Wealth Management

Strategy #2Reposition RetailBanking Network

Retail Bank Network

114

93

Q2/97 Q2/98

Net Income $ millions

24%

18%

Q2/97 Q2/98

ROE %

Retail Bank

Residential Mortgages$ billions

$20

$25

$30

$35

Q2/96 Q4/96 Q2/97 Q4/97 Q2/9813%

14%

15%

Volume Mkt. Share

Insured mortgages

Q2/98: 70%

Q2/97: 42%

Note: Data includes securitized mortgages.

Retail Bank

Personal Loans & Cards

$6

$9

$12

$15

$18

Q2/96 Q4/96 Q2/97 Q4/97 Q2/9810%

12%

14%

Volume Mkt. Share

$ billions

Note: Data includes securitized loans.Retail Bank

Personal Deposits

$35

$40

$45

$50

Q2/96 Q4/96 Q2/97 Q4/97 Q2/9812%

13%

14%

Volume Mkt. Share

$ billions

Retail Bank

Strategy #3Build InvestmentBanking Business

$183

$346

Q2/97 Q2/98

Investment BankingRevenue$ millions

Investment Banking

Investment Banking

$42

$85

Q2/97 Q2/98

Net Income$ Millions

22%

30%

Q2/97 Q2/98

ROE%

Investment Banking

Investment Banking

162%

30%

TD 3 Bank Peer

Other Income Growth vs Q2/97

Investment bank revenue includes underwriting, brokerage, capital market fees, and trading income

Investment Banking

Presentation To Analysts

Frank J. PetrilliMay 28, 1998

Waterhouse Investor Services, Inc.

Waterhouse Investor Services, Inc.

Agenda

n Strength of the Franchise Measuresn Kennedy Cabot/Jack White Integrationn Branch Expansionn Electronic Brokeragen Dow Jones Index Fund

Waterhouse Investor Services, Inc.Average New Account Openings Per Day

0200400600800

10001200140016001800

4th Qtr '96

1st Qtr '97

2nd Qtr

'97

3rd Qtr '97

4th Qtr'97

1st Qtr '98

2nd Qtr

'98

Excluding Kennedy Cabot Including Kennedy Cabot

Waterhouse Investor Services, Inc.Total Accounts (in Thousands)

0

200

400

600

800

1000

1200

4th Qtr '96

1st Qtr '97

2nd Qtr '97

3rd Qtr '97

4th Qtr '97

1st Qtr '98

2nd Qtr '98

Excluding Kennedy Cabot Including Kennedy Cabot

Waterhouse Investor Services, Inc.Average Number of Trades Per Day

0

10000

20000

30000

40000

50000

4th Qtr '96

1st Qtr '97

2nd Qtr '97

3rd Qtr '97

4th Qtr '97

1st Qtr '98

2nd Qtr '98

PC Trades Touch Tone Trades Agent Trades Excluding KCC Kennedy Cabot

Waterhouse Investor Services, Inc.Customer Equity (in USD Billions)

$0.00

$5.00

$10.00

$15.00$20.00

$25.00$30.00$35.00

$40.00

$45.00

4th Qtr '96

1st Qtr '97

2nd Qtr '97

3rd Qtr '97

4th Qtr '97

1st Qtr '98

2nd Qtr '98

Excluding Kennedy Cabot Including Kennedy Cabot

Waterhouse Investor Services, Inc.Money Market Balances (in USD Billions)

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

4th Qtr '96

1st Qtr '97

2nd Qtr '97

3rd Qtr '97

4th Qtr '97

1st Qtr '98

2nd Qtr '98

Excluding Kennedy Cabot Including Kennedy Cabot

Waterhouse Investor Services, Inc.Margin Loans (in USD Millions)

$0

$500

$1,000

$1,500

$2,000

$2,500

4th Qtr '96

1st Qtr '97

2nd Qtr

'97

3rd Qtr '97

4th Qtr '97

1st Qtr '98

2nd Qtr

'98

Excluding Kennedy Cabot Including Kennedy Cabot

Waterhouse Investor Services, Inc.Comparison to Schwab

Factor by which Schwab is larger than Waterhouse

0

1

2

3

4

5

6

7

8

1st Qtr '97* 1st Qtr '98*0

1

2

3

4

5

6

7

8

1st Qtr '97* 1st Qtr '98*

# New Accounts Total # of Accounts

* Calendar Quarter Basis

Waterhouse Investor Services, Inc.Comparison to Schwab

Factor by which Schwab is larger than Waterhouse

0

1

2

3

4

5

6

7

1st Qtr '97* 1st Qtr '98*0

1

2

3

4

5

6

7

1 Qtr '97* 1st Qtr '98*

Total Trades Total Revenue Trades

* Calendar Quarter Basis

Waterhouse Investor Services, Inc.Comparison to Schwab

Factor by which Schwab is larger than Waterhouse

0

2

4

6

8

10

12

14

16

1st Qtr '97* 1st Qtr '980

2

4

6

8

10

12

14

16

1st Qtr '97* 1st Qtr '98*

Customer Assets - All Customers Customer Assets - PC Customers

* Calendar Quarter Basis

N/A

Waterhouse Investor Services, Inc.Comparison to Schwab

Factor by which Schwab is larger than Waterhouse

0

1

2

3

4

5

6

7

8

9

1st Qtr '97* 1st Qtr '98*0

1

2

3

4

5

6

7

8

9

1st Qtr '97* 1st Qtr '98*

Total Revenues Pre-Tax Income

* Calendar Quarter Basis

Waterhouse Investor Services, Inc.

Kennedy Cabot Integrationn KCC Clearing conversion completen KCC Integration plan in progress

- Money Market Funds (June ‘98)- Asset Management Account (June ‘98)- Touch-tone Trading (July ‘98)- PC Trading (Oct ‘98)

n Jack White deal to close May 29th

Waterhouse Investor Services, Inc.

Branch Expansionn Currently at 131 branchesn On track for 200 branches by year 2000n Business Development Offices pilot continuesn Asian/Hispanic branches opened

Waterhouse Investor Services, Inc.

Electronic Brokeragen 3rd largest electronic brokern 250,000 customers enabled for PC tradingn Enhanced version of webbroker launchedn Tripled capacity from late Octobern Morningstar mutual fund reports on-linen Expanded linkages (Quicken, Prodigy,

Microsoft Money)

Waterhouse Investor Services, Inc.

Dow Jones Index Fundsn Effective March 16th with SECn Marketing launch underway

Selected Asian ExposuresGross Outstanding Loans and other Credit Exposures

Millions of Canadian Dollars April 30, 1998

State Owned PrivateCountry Commercial Commercial Total TOTAL

Banks Banks Corporate

Dec 31/97 Apr 30/98 Dec 31/97 Apr 30/98 Dec 31/97 Apr 30/98 Dec 31/97 Apr 30/98

Indonesia 200 195 137 107 183 171 520 473

Malaysia 0 0 3 2 0 0 3 2

Philippines 19 0 16 7 22 34 57 41

South Korea 124 149 118 20 0 0 242 169

Thailand 23 1 63 27 7 7 93 35

Total 366 344 337 164 212 212 915 720

BANK FINANCIAL GROUP