TD Bank Group (TD) has reported a 20% year-over-year decline in its profit for what was the lender’s fiscal second quarter.
Management at TD blamed the profit decline on a one-time charge of $615 million related to an investigation in the U.S. over its failed anti-money laundering programs.
The bank also flagged that it anticipates additional penalties to be imposed on it by the U.S. Department of Justice stemming from charges related to money laundering tied to illegal drugs.
TD Bank Group reported earnings per share of $1.35 for its fiscal Q2, down 20% from $1.69 a year earlier.
Revenue in the quarter totalled $13.82 billion, up 11% from $12.40 billion a year earlier.
Despite its legal problems in America and the profit decline, TD did report that its capital market unit’s net income more than doubled to $441 million in the quarter.
However, the bank said that it is seeing a rise in credit card delinquencies and business bankruptcies across Canada, a situation it attributed to inflation and high interest rates.
The stock of TD Bank Group has declined 10% so far in 2024 to trade at $76.81 per share. Over the last five years, the stock has registered no growth, having risen less than 1%.
