TD Bank’s Profit Jumps 77% On Higher Loan Rates

Toronto-Dominion Bank (TD), commonly known as TD Bank, reported a 77% increase in its fiscal fourth-quarter net profit due to gains from higher interest rates charged on personal and commercial loans.

Canada's second biggest bank said its fiscal Q4 net profit was $6.67 billion, or $3.62 per share, up 77% from $3.78 billion, or $2.04 per share, a year earlier.

The results are much stronger than Canada’s other big banks, many of which have reported lower quarterly profits as a lack of deals hurt their capital markets business.

TD Bank’s personal and commercial loan business recorded an 11% increase in net income during the most recent quarter.

The Toronto-based lender set aside $617 million for potentially bad loans in the quarter, compared to a release of $123 million a year earlier.

TD Bank’s stock is down 8% this year and trading at $91.84 per share.