Mar 1, 2018
TD Bank sails past Q1 profit estimates, boosts dividend
Toronto-Dominion Bank sailed past first-quarter profit expectations, prompting its CEO to hint the bank could be on pace to top its internal targets this year.
Adjusted profit in the three months ending Jan. 31 rose to $2.95 billion from $2.56 billion a year earlier. On a per share basis, TD earned $1.56. Analysts were expecting $1.46 in adjusted earnings per share.
TD also raised its quarterly dividend 11.7 per cent to 67 cents per share.
“The dividend increase was spectacular. Usually the banks come out with a one- or two-cent increase to their dividend,” said Colin Cieszynski, chief market strategist at SIA Wealth Management, in an interview with BNN. “[It’s a] really, really, good indication from management that they expect to continue to perform well over the next year.”
Profit in the latest period was powered by double-digit gains in TD's bread-and-butter banking units. Canadian retail earnings rose 12 per cent to $1.76 billion, while adjusted net income in the bank's U.S. retail division surged 23 per cent to US$672 million.
"All of our businesses are performing well and the operating environment remains favourable," TD CEO Bharat Masrani said in a press release.
"While there are risks on the horizon, if these positive conditions persist, adjusted earnings growth for the full year may exceed our medium-term targets."
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