TD Bank profit jumps to $2.1 billion
Strong retail banking division boosts profit 38 per cent in the bank's third quarter
TD Bank reported a higher third-quarter net profit of $2.1 billion, with strong results from its Canadian retail banking operations.
The bank earned $1.11 per share, compared with $1.52 billion, or 79 cents per share, in the same quarter last year.
Adjusted net income was $2.16 billion, or $1.15 per share, compared with an adjusted net income of $1.58 billion, or 82 cents per share. Total revenue was $7.5 billion compared with $7.1 billion year-over-year.
Analysts had been expecting $1.09 in adjusted earnings per share, according to data compiled by Thomson Reuters.
The bank says its Canadian retail operations had a net income of $1.4 billion for the third quarter, a 54 per cent increase in adjusted earnings over the same quarter last year, driven by such factors as good loan and deposit growth, contributions from Aeroplan and higher wealth assets.
Loyalty rewards company Aimia Inc., which owns and operates the Aeroplan rewards program in Canada, now has TD Bank as its main partner as the issuer of Aeroplan credit cards.
U.S. operations stay strong
The bank's U.S. retail operations generated net income of US$518 million, an increase of four per cent compared with the third quarter last year.
Its wholesale banking segment, which provides services to corporate clients and financial institutions, had net income for the quarter was $216 million, an increase of 46 per cent compared with the third quarter last year.
Provisions for credit losses was $338 million compared with $477 million in the same quarter of 2013.
TD Bank also says its insurance earnings had a rebound from last year when the business was affected by severe weather-related impacts and increased general insurance claims.
The bank's return on equity was 16.3 per cent versus 12.8 per cent year-over-year.