Bank's announcement gets earnings season underway
Toronto-Dominion Bank (TD) saw profits tick upwards in the second quarter as resilience on the personal and commercial banking front helped offset higher loan-loss provisions and subdued performance on the US retail side.
The banking giant posted adjusted net income of $3.79 billion, an increase from $3.71 billion in Q2 2023, with adjusted diluted earnings per share jumping to $2.04 compared with $1.91 for the same period last year.
Its release of Q2 financials on Thursday morning (May 23) made it the first of Canada’s six largest banks to reveal how it had performed for the quarter ending April 30.
Provisions for credit losses – a much-highlighted trend among top financial institutions – continued to climb. The bank set aside $1.07 billion for souring loans in Q2, up from $599 million in the second quarter last year and $1.0 billion on a quarter-over-quarter basis.
In Canadian personal and commercial banking, net income increased by 7% over 2023’s second quarter, TD said, jumping to nearly $1.74 billion as a revenue surge helped offset those higher loan loss provisions.
In its US retail division, meanwhile, reported net income plunged by 59% in what the bank described as a “challenging” environment, falling to $580 million with earnings from its investment in The Charles Schwab Corporation dipping by 27% year over year to $183 million.
The bank highlighted its cooperation with US regulators in recent months to overhaul its anti-money laundering (AML) program amid a probe into its practices by the Department of Justice.
Last month, the bank put aside hundreds of millions of dollars in relation to one investigation into alleged laundering of funds linked to the sale of illegal drugs, with provisions for investigations tied to its AML program totalling $615 million in Q2.
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