TD:CC - TD Bank fiscal Q2 earnings decline as Wealth Insurance Wholesale slip

2023-05-25 08:19:00 ET

Toronto-Dominion Bank ( NYSE: TD ) posted fiscal Q2 earnings that fell short of the average analyst estimate as its Wealth Management & Insurance and Wholesale Banking businesses remained weak in the quarter, partly offset by growth in its Canada Personal & Commercial Banking and U.S. businesses.

The bank also announced a plan to buy back and cancel up to 30M of its common shares , representing about 1.6% of its 1.84B common shares outstanding as of April 30.

Since the end of the quarter, TD Bank ( TD ) and First Horizon ( FHN ) called off their merger agreement .

Adjusted EPS for the quarter ended April 30, 2023 was C$1.94 (US$1.43), missing the C$2.09 consensus estimate, and declining from C$2.23 in Q1 and C$2.02 in Q2 2022.

Adjusted revenue of C$12.5B (US$9.19), exceeding the $12.4B consensus, slipped from C$13.1B in the previous quarter and increased from C$11.0B in the year-ago period.

Net interest income of C$7.43B fell from C$7.73B in Q2 and climbed from C$6.38B in Q2 2022.

Provision for credit losses of C$599M decliend from C$690M in the prior quarter and jumped from C$27M in the same quarter a year ago.

Total loans, net of allowance for loan losses, rose to C$849.6B from C$836.7B in the prior quarter. Total deposits of C$1.19T declined from C$1.22T in Q1.

Adjusted return on common equity was 14.1% vs. 16.1% in the previous quarter and 15.9% in the year-ago quarter.

Canadian Personal & Commercial Banking net income of C$1.63B fell 6% Q/Q and rose 4% Y/Y; total revenue of C$4.40B dropped 4% Q/Q and increased 11% Y/Y.

U.S. Retail adjusted net income of C$1.53B slipped 8% Q/Q and rose 28% Y/Y; adjusted total revenue of C$2.65B fell 5% Q/Q and rose 24% Y/Y. The adjusted net income figure excludes acquisition and integration-related charges for the First Horizon ( FHN ) of C$154M. That deal was terminated earlier in May.

Wealth Management & Insurance net income of C$563M rose 2% Q/Q and dropped 16% Y/Y; total revenue of C$2.74B slid 8% Q/Q and increased 2% Y/Y.

Wholesale Banking adjusted net income of C$213M, down 39%Q/Q and 41% Y/Y; revenue of C$1.42B increased 5% Q/Q and 13% Y/Y.

Conference call at 1:30 PM ET.

Earlier, TD Bank ( TD ) non-GAAP EPS of C$1.94 misses by C$0.15, revenue of C$12.54B beats by C$130M

More on TD Bank:

• First Horizon investor sues TD Bank over failed acquisition
• Toronto-Dominion Bank and First Horizon: The Cancellation Is Bullish
• Toronto-Dominion Bank: Attractive Valuation and Superior Capital Ratios

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