TD Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada. It boasts a large footprint in the United States, where it is one of the biggest retail banks. Shares of TD Bank have climbed 20% in 2021 as of early afternoon trading on May 31. The stock is up 44% from the prior year.
The bank released its second quarter 2021 results on May 27. Adjusted net income increased to $3.77 billion or $2.04 per share – up from $1.59 billion or $0.85 per share in the prior year.
Meanwhile, adjusted net income in the year-to-date period has climbed to $7.15 billion or $3.86 per share over $4.67 billion or $2.51 per share in the same period in 2020.
TD Bank’s Canadian Retail segment saw net income jump 86% from the previous year to $2.18 billion. This was powered by low provisions for credit losses and record results in wealth and insurance. Meanwhile, net income in its U.S. Retail segment surged 292% to $1.31 billion. This rise was fueled by its investment in Charles Schwab (NYSE:SCHW) and lower PCL.
Its Wholesale Banking contributed to the strong quarter as net income rose 83% to $383 million. Lower PCL were partially offset by weaker revenues.
Shares of TD Bank last had a favourable price-to-earnings ratio of 11. The bank declared a quarterly dividend of $0.79 per share. That represents a 3.6% yield. TD Bank is still worth targeting after this impressive quarter. The Canadian and U.S. economies are on the rebound, and brighter days are ahead.
Related Stories
