TD beats analysts expectations after two successive misses
Toronto-Dominion Bank beat analysts’ expectations after missing for two consecutive quarters as it reported higher first-quarter profits in its Canadian personal and commercial banking and wholesale banking segments.
Its net income for the three months ending Jan. 31 was $2.79 billion, compared to $2.82 billion during the same period a year ago, resulting in net earnings per share of $1.55.
Adjusted net income was $3.62 billion, compared to $3.63 billion a year ago, resulting in adjusted earnings per share of $2.02, topping analysts’ expectations of $1.96 per share.
“While expenses remain somewhat elevated, we delivered solid earnings,” chief executive Raymond Chun said in a statement. “U.S. (anti-money laundering) remediation remains our top priority and we continue to make consistent progress to strengthen the bank.”
Canada’s second-largest bank didn’t meet analysts’ expectations in the past two quarters after it was fined $3.1 billion and ordered by regulators in the United States to cap the expansion of its retail banking business in that country for failing to prevent money laundering from its branches there.
In December, TD suspended its medium-term financial targets and said it would conduct a review of its strategies. It hopes to provide new financial targets in the second half of 2025 after its strategic review is completed.
As part of its review, the bank sold its entire ownership stake in Charles Schwab Corp. to free up about $20 billion. The bank used $8 billion of that to repurchase up to 100 million shares and plans to use a portion of the money to “drive organic growth” and further “deepen” relationships with its 14 million Canadian customers.
This is TD’s first quarterly result with Chun at the helm. The
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