Bank reports lower-than-expected profits
Toronto-Dominion Bank’s third-quarter financial results showed the banking giant missed analysts’ estimates, with a restructuring charge linked to job cuts and a multibillion-dollar provision for fines related to money-laundering investigations in the US weighing against its performance.
The bank became the first of Canada’s top six financial institutions to release its Q3 results, as adjusted earnings of $2.05 a share came in below the $2.07 expected in a Bloomberg poll of analysts.
Restructuring charges amounted to $110 million in the year to date, while the bank set aside $2.6 billion for potential penalties linked to its ongoing legal troubles in the US tied to compliance oversights and failure to identify money laundering in specific branches south of the border.
TD, which is Canada’s second largest bank, parted with some of its stake in Charles Schwab Corp. to fund its latest allowance for possible fines, and has also trimmed its workforce and shed real estate in recent months.
A weaker-than-expected performance by TD’s wealth management and insurance division contributed to its overall sluggish numbers for the third quarter, while adjusted net income for the year to date is slightly down over the same time in 2023 ($11.07 billion, compared with $11.5 billion).
Scotiabank and Bank of Montreal (BMO) are set to reveal their third-quarter results on Tuesday morning (August 27), with National Bank and Royal Bank of Canada (RBC) following on Wednesday and Canadian Imperial Bank of Commerce (CIBC) rounding out the banking giants’ earnings announcements on Thursday (August 29).
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