TD Bank profit rises 9% to almost $3B in fourth quarter
Most business units show growth, even as money set aside for bad loans inches up to $670 million
TD Bank Group beat expectations as it reported a fourth-quarter profit of $2.96 billion, up from $2.71 billion in the same quarter a year ago.
The bank said Thursday the profit amounted to $1.58 per diluted share for the three months ended Oct. 31, up from $1.42 per diluted share a year ago.
On an adjusted basis, TD says it earned $1.63 per share for the quarter, up from an adjusted profit of $1.36 per share a year ago. Thomson Reuters Eikon says analysts on average had expected a profit of $1.62 per share.
"I am extremely pleased with our earnings performance in the fourth quarter, which capped a very strong year," Bharat Masrani, TD Bank Group president and chief executive, said in a statement.
"2018 represented a year of tremendous progress as we advanced key strategic priorities and continued to innovate to strengthen our competitive advantage."
The profit came as TD said revenue totalled $10.12 billion, up from $9.27 billion in the fourth quarter last year.
Provisions for credit losses for the quarter totalled $670 million, up from $578 million a year ago.
TD said its Canadian retail business earned $1.74 billion in its fourth quarter, up from $1.66 billion in the same quarter last year, boosted by strong volumes and market share gains.
The bank's U.S. retail operations, including TD Ameritrade, earned $1.11 billion, up from $776 million a year ago.
Wholesale banking, which includes TD's capital markets business, earned $286 million, up from $231 million. That was boosted by higher trading-related revenue and fee and advisory revenue, and partially offset by higher provisions for credit losses and expenses.
For its full financial year, TD said it earned $11.33 billion or $6.01 per diluted share. That compared with a profit of $10.52 billion or $5.50 per diluted share a year earlier.