TORONTO - TD Bank Group (NYSE:TSX:TD) reported a notable beat on both earnings and revenue for its second quarter, with adjusted earnings per share (EPS) of Cdn$2.04, exceeding the analyst consensus of Cdn$1.85.
Following the earnings release, TD Bank shares saw a modest increase of 0.8%, signaling a positive but restrained investor reaction to the earnings and revenue beat.
Revenue also surpassed expectations, coming in at Cdn$13.82 billion against the forecasted Cdn$12.67 billion. The results represent a solid performance despite a complex economic backdrop, with the bank achieving a year-over-year (YoY) increase in adjusted net income.
The bank's reported diluted EPS for the quarter was $1.35, a decline from $1.69 in the same quarter last year. However, adjusted EPS showed resilience, rising from $1.91 to $2.04 YoY. Reported net income fell to $2,564 million from $3,306 million, while adjusted net income saw a slight uptick to $3,789 million from $3,707 million. These figures reflect the bank's ability to navigate challenges while maintaining growth in key areas.
TD Bank's Canadian Personal and Commercial Banking segment was a standout performer, with net income rising 7% YoY to $1,739 million, driven by volume growth and margin expansion. Revenue in this segment increased by 10%, reaching $4,839 million. The U.S. Retail Bank faced headwinds, with reported net income decreasing significantly due to provisions related to the bank's anti-money laundering program and other assessments, though it achieved loan growth and balance sheet stability.
Group President and CEO Bharat Masrani commented on the results, "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."
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