Toronto Dominion Bank Strong Capital Position and Revenues

Toronto-Dominion Bank’s second-quarter fiscal 2018 adjusted earnings were C$1.62 per share, up 21% year over year. Improvement in revenues was partially offset by higher provisions and a modest rise in operating expenses. 

Toronto-Dominion Bank’s second-quarter fiscal 2018 adjusted earnings were C$1.62 per share, up 21% year over year. Improvement in revenues was partially offset by higher provisions and a modest rise in operating expenses.

TD Bank

Earnings

Second-quarter fiscal 2018 (ended Apr 30) adjusted earnings were C$1.62 per share, up 21% year over year. Adjusted net income rose 20% year over year to C$3.1 billion ($2.4 billion). Growth in capital and profitability ratios, as well as loan and deposit growth remained impressive. After considering certain non-recurring items, net income was C$2.9 billion ($2.3 billion), up 17% from the prior-year quarter. 

The Toronto-Dominion Bank NYSE: $TD

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Robust Revenue Growth

Total revenues (on an adjusted basis) were C$9.5 billion ($7.4 billion), up 12% year over year.  Growth in net interest income, as well as non-interest income fueled the rise.

  • Adjusted net interest income grew 7% year over year to C$5.4 billion ($4.2 billion).
  • Adjusted non-interest income came in at C$4.1 billion ($3.2 billion), leaping 21% from the year-ago quarter.
  • Adjusted non-interest expenses rose year over year to C$4.7 billion ($3.7 billion).
  • Adjusted efficiency ratio was 50.1% at the quarter end, down from 55.8% as of Apr 30, 2017. (A decline in efficiency ratio indicates an improvement in profitability.)

Balance Sheet and Credit Provision

  • Total provision for credit losses increased 11% year over year to C$556 million ($436 million).
  • Total assetswere  C$1.28 trillion ($1 trillion) as of Apr 30, 2018, up 2% from the prior quarter.
  • Net loans grew 2% sequentially to C$622 billion ($484.7 billion)
  • Deposits rose 2% to C$829.8 billion ($646.6 billion).

Return on common equity, on an adjusted basis was 17.6%, up from 14.8% as of Apr 30, 2017. As of Apr 30, 2018, common equity Tier I capital ratio was 11.8%, up from 10.8% in the prior-year quarter. Total capital ratio came in at 15.8% for the reported quarter, up from 14.9% as of Apr 30, 2017. 

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