TORONTO – TD Bank Group (NYSE:TD) reported notable improvements in both earnings and revenue for the second quarter, with adjusted earnings per share (EPS) of C$2.04, beating analyst consensus of C$1.85.
TD Bank shares rose 0.8% following the earnings report, signaling a positive but muted investor reaction to earnings and revenue trends.
Revenue also beat expectations, coming in at C$13.82 billion versus the C$12.67 billion forecast. The results represent a strong performance despite the challenging economic environment, with the bank achieving an increase in adjusted net profit compared to the same period last year.
The bank’s diluted earnings per share for the quarter were $1.35, down from $1.69 in the same quarter last year. However, adjusted earnings per share showed resilience, rising from $1.91 to $2.04 YoY. Reported net income fell to $2.564 million from $3.306 million, while adjusted net income rose slightly to $3.789 million from $3.707 million. The figures reflect the bank’s ability to address challenges while maintaining growth in key areas.
TD Bank’s Canadian private and commercial banking segment delivered outstanding results, with net income up 7% YoY to $1,739 million, driven by volume growth and margin expansion. Revenue in the segment rose 10% to $4.839 million. The U.S. retail bank faced headwinds, with reported net income falling significantly due to provisions related to the bank’s anti-money laundering program and other estimates, although it achieved loan growth and balance stability.
Group President and CEO Bharat Masrani commented on the results: “TD delivered strong results in the second quarter with revenue of $3.8 billion and strong momentum across our franchise. We achieved significant positive operating leverage by continuing to invest in our business, including our risks and controls. infrastructure”.
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