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

© 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.