May 26, 2022
Toronto-Dominion Profit Gains on Strength in US Retail Division
(Bloomberg) -- Toronto-Dominion Bank’s US personal-banking business benefited from continued strength in the housing market and robust credit conditions in the fiscal second quarter.
Revenue in the US retail segment came in at C$2.32 billion ($1.81 billion) in the three months through April, the Toronto-based bank said Thursday. That’s up 12% from a year earlier.
Canada’s largest lender by assets, which is expanding its presence in the US with the $13.4 billion takeover of First Horizon Corp., saw its mortgage-loan balances in the country rise in the quarter. It also released provisions for potential credit losses in the business, signaling confidence in borrowers’ ability to continue paying their loans despite a weakening economic outlook.
“We have delivered strong revenue growth across our businesses and we enter the second half of the year well-positioned to support households and businesses as they navigate an evolving economic environment,” Chief Executive Officer Bharat Masrani said.
Toronto-Dominion shares have fallen 3.3% this year, compared with a 4.1% drop for the S&P/TSX Commercial Banks index.
Also in the earnings release:
- Net income rose 3.1% to C$3.81 billion, or C$2.07 a share.
- Excluding some items, profit was C$2.02 a share. Analysts estimated C$1.93, on average.
- Toronto-Dominion set aside C$27 million in provisions for credit losses for the bank as a whole. Analysts estimated the bank would set aside C$266.2 million in provisions.
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