FINANCIAL LETTER TO Better RESULTS SHAREHOLDERS plus better Shareholders Clients Associates creates momentum, and momentum Better sales, plus better service, plus better expense The ongoing strength of our financial position enables Dear Shareholders, fuels sustainable management. Seeking continuous improvement against our pursuit of better and allows us flexibility in returning growth. Delivering on our financial Helping today’s investors Creating an environment A lot can happen in five years. The fall of 2008 was a very a simple, straightforward growth strategy powers our capital to our shareholders. In 2013 we returned 107% goals and providing value, find the tools, assistance that encourages teamwork, different environment, and we were a different company. financial results because in an uncertain economic of our net income through debt repayments and despite macroeconomic and solutions they leadership and doing the There were many things to be concerned about: plummeting environment, being better is the only way to execute. cash dividends, including an effective dividend yield stock markets and consumer confidence, preeminent financial institutions going out of challenges need to manage their right thing – on the job Five years of double-digit asset gathering have helped us of 5.6% for the year. With a debt-to-EBITDA ratio of business, and soaring unemployment to name a few. Our clients were fleeing to cash financial futures and in our communities amass nearly $100 billion in interest-rate sensitive assets. approximately 1:1, a strong credit rating and strong as their portfolios dropped. The Fed Funds Rate hit near-zero levels in December 2008 This helps us fight through interest rate compression cash generation capabilities, we are preserving our $2.8 billion and has not changed since. today, and positions us for the strong earnings upside ability to continue delivering such incremental value Fred Tomczyk in net revenues – a record – 2,200 20%+ that will come with more normalized interest rates. to shareholders in 2014, and in the years to come. It was an uncertain time. We could have pulled back as others did and saved our way up 5% from 2012 ® new mobile platform users each of offices LEED certified or through the crisis, but instead we decided that, with a strong balance sheet, we would business day, on average pending certification by the take advantage of the crisis and invest to take market share. We told our shareholders U.S. Green Building Council it might mean sacrificing some short-term earnings, but if successful, we would $199 million Average Client Trades Per Day Net New Client Assets Earnings Per Share (thousands) (billions) increase our long-term earnings power significantly. in net new client assets each 51 business day, on average advisor technology vendors 89% We settled on a vision to “be the better investment firm for today’s investor.” We 399 $50 $1.22 ® linked to our Veo platform associate engagement, according 372 372 374 created a culture of continuous improvement. Why? Because doing something 360 $1.10 $1.11 to our latest survey data $1.06 better once is a point-in-time benefit. It happens, and then it ends. But, TD AmeritradeTD 75%+ $41 $41 $1.00 continuous improvement, or better plus better, creates momentum, and total shareholder return 1,500 momentum fuels sustainable growth. $34 Joe Moglia in fiscal 2013 investor education 20,000 webcasts broadcast for hours volunteered in We improved our sales efforts, client service, technology and marketing – self-funding $27 clients and prospects communities nationwide initiatives by becoming more efficient in other areas. Each effort fueled the next and, five years later, these are the results: 12% 11% 11% 2013 Annual Report 2013 10% 10% • We increased our market share in client trades per day in each of the last five years. • We doubled our total client assets, from $278 billion to $556 billion. • We gathered more than $192 billion in net new client assets through five 07 08 09 10 11 years of double-digit growth. 09 10 11 12 13 09 10 11 12 13 09 10 11 12 13 Growth Rate2 • We developed market fee-based revenue from our growing line-up of investor guidance solutions into a viable third revenue stream, up $152 million, or 156%, over the last five years, to a total of $249 million in fiscal 2013. 1 Corporate Headquarters Return On Equity (ROE) Pre-tax Margin EBITDA • We amassed nearly $100 billion in interest rate-sensitive assets. With our TD Ameritrade (millions) net interest margin at 1.41% at the end of fiscal 2013, vs. 4.39% five years 200 South 108th Avenue ago, we are well-positioned for the future when interest rates begin to move Omaha, NE 68154 $1,290 21% 44% up to more normal levels. $1,219 $1,213 39% $1,114 $1,098 And, we did all of these things while tightly managing expenses – holding them at the Every day we set out to do something more, or better, than 36% 37% 16% 16% 34% same level for the last three years while continuing to invest in the future. we did the day before. Whether that’s bringing in more client 15% 14% We are delivering on our commitments, and it is reflected in our stock price – the most assets, or educating more investors about the stock markets, relevant metric to you, our shareholders. Over the last five years, we have delivered a or helping more people in the communities where we live and total shareholder return of 68%. This compares to 61% for the S&P 500, work, we are constantly asking “what more can we do?” 9% for the S&P Financials, and 20% for the NYSE Arca Securities Broker/ We are not in maintenance mode. We are building for the Dealer Index. future – one (better) year at a time. And yet, despite all that we have done so far, we are not done yet. There are still opportunities for us to get even better. The competition is engaged once again, and investors’ needs and interests will continue to evolve. We will not sit still. In 2014, our 07 08 09 10 11 07 08 09 10 11 vision remains the same: “be the better investment firm for today’s investor.” 09 10 11 12 13 09 10 11 12 13 09 10 11 12 13 Fred Tomczyk Joe Moglia 1 See reconciliation of non-GAAP financial measures on page 99. www.amtd.com 2013 Annual Report 2 Net new asset growth rate (annualized) — Annualized net new assets as a percentage of client assets as of the beginning of the period. President & Chief Executive Officer Chairman FINANCIAL LETTER TO Better RESULTS SHAREHOLDERS plus better Shareholders Clients Associates creates momentum, and momentum Better sales, plus better service, plus better expense The ongoing strength of our financial position enables Dear Shareholders, fuels sustainable management. Seeking continuous improvement against our pursuit of better and allows us flexibility in returning growth. Delivering on our financial Helping today’s investors Creating an environment A lot can happen in five years. The fall of 2008 was a very a simple, straightforward growth strategy powers our capital to our shareholders. In 2013 we returned 107% goals and providing value, find the tools, assistance that encourages teamwork, different environment, and we were a different company. financial results because in an uncertain economic of our net income through debt repayments and despite macroeconomic and solutions they leadership and doing the There were many things to be concerned about: plummeting environment, being better is the only way to execute. cash dividends, including an effective dividend yield stock markets and consumer confidence, preeminent financial institutions going out of challenges need to manage their right thing – on the job Five years of double-digit asset gathering have helped us of 5.6% for the year. With a debt-to-EBITDA ratio of business, and soaring unemployment to name a few. Our clients were fleeing to cash financial futures and in our communities amass nearly $100 billion in interest-rate sensitive assets. approximately 1:1, a strong credit rating and strong as their portfolios dropped. The Fed Funds Rate hit near-zero levels in December 2008 This helps us fight through interest rate compression cash generation capabilities, we are preserving our $2.8 billion and has not changed since. today, and positions us for the strong earnings upside ability to continue delivering such incremental value Fred Tomczyk in net revenues – a record – 2,200 20%+ that will come with more normalized interest rates. to shareholders in 2014, and in the years to come. It was an uncertain time. We could have pulled back as others did and saved our way up 5% from 2012 ® new mobile platform users each of offices LEED certified or through the crisis, but instead we decided that, with a strong balance sheet, we would business day, on average pending certification by the take advantage of the crisis and invest to take market share. We told our shareholders U.S. Green Building Council it might mean sacrificing some short-term earnings, but if successful, we would $199 million Average Client Trades Per Day Net New Client Assets Earnings Per Share (thousands) (billions) increase our long-term earnings power significantly. in net new client assets each 51 business day, on average advisor technology vendors 89% We settled on a vision to “be the better investment firm for today’s investor.” We 399 $50 $1.22 ® linked to our Veo platform associate engagement, according 372 372 374 created a culture of continuous improvement. Why? Because doing something 360 $1.10 $1.11 to our latest survey data $1.06 better once is a point-in-time benefit.