TD Ameritrade 2018 Annual Report

To run the place better We’re proud of our scale at TD Ameritrade, but with it comes more than a few challenges that too often go unaddressed at big companies. Like the difficulty to respond quickly to competitive pressure, poor communication, fear of failure, even a siloed workforce … all things that put winning in jeopardy. So we’re addressing each of these, with leadership at the very top of the house focused on removing the barriers that might keep us from operating like the nimble company you expect us to be. So we can disrupt There are some who would say that innovation can’t really happen when you’ve reached our level of maturity ... that somehow it’s for companies “early in their lifecycle.” We don’t see it that way. Two things to know about our workforce at TD Ameritrade: They have an abundant supply of energy and smarts, and a passion for innovation … pretty incalculable competitive advantages if you ask us. The hard part for a mature company like ours is eliminating the barriers that get between them and really transforming investing. So we’ve empowered groups to drive innovation. This year alone that decision saw us launch relationships with recognized technology powerhouses: A pple, A mazon A lexa, F acebook M essenger, T witter, and W e C hat (Asia). We’re delivering our products, solutions, and services in channels where our clients do business today. We were the first to launch chatbots on Facebook Messenger and Twitter using artificial intelligence, the first to introduce 24/5 trading, and, more recently, we were the first to offer voice-activated trading via Amazon’s Alexa. And that’s just this year. We also realized that it’s one thing to have ideas and another thing entirely to have a place to incubate them. So we’ve created a startup studio of sorts to do precisely that. A greater responsibility If we exist to transform lives and investing for the better, with that comes a responsibility to invest in a better tomorrow for people and their communities. Through our people, technology, and expertise, we’re committed to contributing to the greater good. That means providing greater access to the markets, inspiring our employees to take action, fostering inclusion, and doing our part to protect the environment. And we’re also returning capital to you We increased our quarterly cash dividend by $0.09 per share for 2019 to $0.30 , a 43 percent increase. And we paid a total of $477 million in cash dividends in fiscal 2018 , along with $255 million in cash to repurchase 4.6 million shares. This is the part of the letter where impartiality gets thrown out the window, and we tell you just how special it is to be part of TD Ameritrade. But if you saw what we saw this year … 10,000 people intensely focused on creating a better experience for investors, who respond to the unexpected in the best possible ways with the best possible attitude, you might share our excitement. Count on us to continue delivering for you. iii Joe Moglia Chairman Tim Hockey President & CEO