TD profit slides, but earnings manage to beats analyst expectations
Net income slipped just over nine per cent to $3.21 billion in the third quarter
Toronto-Dominion Bank’s net income slipped just over nine per cent to $3.21 billion in the third quarter from last year on rising costs and larger stockpiles of cash set aside for sour loans.
The bank’s adjusted earnings came to $2.09 per share, managing to beat average analyst expectations of $2.04 per share.
“Continued business momentum, increased customer activity and the benefits of our deposit rich franchise contributed to TD’s strong performance in the third quarter,” said TD Bank Group chief executive officer Bharat Masrani in a press release accompanying the results. “Investments in talent and innovation, combined with our focus on prudent risk and financial management, strengthened our business and extended our competitive advantage.”
Net income in TD’s Canadian retail segment edged up six per cent to $2.25 billion on rising revenues as well as banking and insurance volumes. Rising interest rates and record credit card sales also contributed to the growth. However, expenses also widened by eight per cent and provisions for credit losses grew by $70 million compared to a year earlier.