TD Bank Profit Climbs 10%
May 26 2016 - 8:40AM
Dow Jones News
Toronto-Dominion Bank on Thursday reported a
better-than-expected 10% increase in its fiscal second-quarter
profit, helped by stronger earnings from its retail operations in
both Canada and the U.S.
Canada's second-largest lender by assets beat analyst
expectations for the February-to-April quarter even as the amount
set aside to cover bad loans climbed 56% from a year earlier.
Toronto-based TD had a fiscal second-quarter profit of 2.05
billion Canadian dollars ($1.57 billion), or C$1.07 a share, up
from C$1.86 billion, or 97 Canadian cents a share, a year
earlier.
Excluding items, the bank said its adjusted earnings totaled
C$1.20 a share, which was ahead of the C$1.16 a share analysts
polled by Thomson Reuters expected.
Loan-loss provisions, or funds set aside to cover soured loans,
rose to C$584 million from C$375 million a year earlier. On a
quarter-over-quarter basis, loan-loss provisions were down 9% from
C$642 million.
TD said earnings from its Canadian retail banking division were
up 2% from a year earlier, while U.S. retail earnings were up 15%.
Wholesale banking results fell 11%, which the bank attributed to
higher credit provisions.
"Our performance this quarter demonstrates our diversified
business strategy and ability to generate strong organic growth,"
Chief Executive Bharat Masrani said in a release.
TD maintained its quarterly dividend at 55 Canadian cents per
share.
TD's second-quarter beat follows stronger-than-expected
quarterly results from peers Royal Bank of Canada and Canadian
Imperial Bank of Commerce earlier on Thursday. Bank of Montreal
kicked off earnings season on Wednesday with a lower-than-expected
profit. Bank of Nova Scotia will close out earnings season for the
banks on May 31.
Write to Judy McKinnon at judy.mckinnon@wsj.com
(END) Dow Jones Newswires
May 26, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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