Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

TD Profits Down 9% Year over Year But in Line with Analyst Expectations

Published 2022-08-25, 09:59 a/m
Updated 2022-08-25, 10:02 a/m
© Reuters.

© Reuters.

Ketki Saxena 

Investing.com – Toronto-Dominion Bank’s net income slipped 9% year over year to $3.21 billion, as capital markets revenue slid, and provisions for credit losses grew. The bank’s Canadian and U.S. retail segments meanwhile both remain robust.

The bank’s adjusted earnings came to $2.09 per share, beating average analyst expectations of $2.04 per share.

The bank's capital markets unit saw profit slide 18 % year-over-year to $271 million, which TD (TSX:TD) attributed to higher expenses and provisions, although revenue from trading activity jumped 17 %.

Net income in TD’s Canadian retail segment edged up six % to $2.25 billion on rising revenues as well as banking and insurance volumes, and record-credit card sales. The bank’s U.S. retail business revenues rose 11% year over year  to US$1.12 billion as personal loans and deposits continued to grow.

Wholesale banking net income fell 18% year over year to $271 million on rising non-interest expenses and higher PCL. 

Expenses widened by 8% and provisions for credit losses grew by $70 million compared to a year earlier, reaching $351 million in this quarter as it invested in business growth, employees and technology. TD also noted $29 million in acquisition charges for its First Horizon Corp. deal first announced in February.

TD hopes significantly expand its U.S. business with the US$13.4-billion purchase of Tennessee-based First Horizon. The deal is still awaiting regulatory approvals. TD said today it's still hoping to close the transaction in the first quarter of its 2023 fiscal year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.