Aug 25, 2016
TD Bank's quarterly profit rises to $2.36B on U.S. retail growth
The Canadian Press
TORONTO -- TD Bank is reporting a third-quarter profit of $2.36 billion, up four per cent from a year ago on strong earnings from its U.S. retail banking operations.
Last year, the bank earned $2.27 billion during the three months ended July 31.
On a per share basis, TD earned $1.24 during the third quarter, compared with $1.19 during the same period last year.
After adjustments, the bank earned $2.42 billion during the quarter, or $1.27 per share, up from $2.29 billion or $1.20 per share a year ago.
TD raked in $8.70 billion in quarterly revenue, up from $8.01 billion.
TD's results come amid a string of estimate-defying earning reports from Canada's banks. CIBC posted a 47 per cent rise in profit, while Royal Bank of Canada and Bank of Montreal also blew past expectations earlier this week.
“What it shows is [the banks are] great capital allocators; number two, the business is pretty much recession-proof, which is fantastic; and, three, it just shows that maybe the consumer itself is not as unhealthy as we might think – or at least they’re willing to continue to keep spending in spite of what appears to be a slowing economy," John Stephenson, president and chief executive of Stephenson & Company, said in an interview with BNN.
"It’s amazing they’ve done as well as they have.”
Here's a look at some of TD Bank and CIBC's credit quality details:
Total provisions for credit losses
CIBC: $243M vs $324M in Q2 vs $189M in Q3 ‘15
TD: $556M vs $584M in Q2 vs $437M in Q3 ‘15
Provisions for oil and gas sector
CIBC: $2M vs $81M in Q2 vs nil in Q3 ‘15
TD: $8M vs $49M in Q2 vs $1M in Q3 ‘15
Total gross impaired loans
CIBC: $1.74B vs $1.88B in Q2 vs $1.48B in Q3 ‘15
TD: $3.47B vs $3.57B vs $3.08B in Q3 ’15
Gross impaired oil and gas loans
CIBC: $409M vs $708M in Q2 vs $34M in Q3 ‘15
TD: $240M vs $211M in Q2 vs $35M in Q3 ‘15
With files from BNN