Toronto-Dominion Bank (TD) reported fiscal third quarter net income of $3.21 billion, a 9%
decline from a year earlier when it earned $3.55 billion.
However, TD Bank’s earnings per share amounted to $2.09, which was better than the $2.04
expected by analysts. The lender said that it benefitted from higher interest rates in the quarter
ended July 31.
Overall profit at TD Bank was constrained by $351 million in loan loss provisions, which was the
most that the financial institution has set aside for loans that could potentially go bad since the
end of 2020.
TD said that its U.S. retail bank business was its most profitable unit during Q3, where net
income gained 7% year-over-year to $1.12 billion U.S.
TD Bank said it plans to expand its U.S. business with the $13.4 billion U.S. purchase of
Tennessee-based First Horizon Bank. That deal was announced in February of this year and is
awaiting regulatory approvals in Canada and the U.S.
Within Canada, TD's retail banking business saw profits rise 6% year-over-year to $2.25 billion.
Profits in Canada were also hurt by an 8% jump in expenses such as investments in technology
and staffing.
The bank's capital markets unit saw profits decline 18% year-over-year to $271 million, which it
attributed to less trading, higher expenses, and loan loss provisions.
TD stock is down 13% this year at $86.06 per share.
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