FHN - Why Shares of Toronto-Dominion Bank Are Down Today
2023-05-24 16:13:51 ET
Shares of the large Canadian lender Toronto-Dominion Bank (NYSE: TD) traded roughly 2.4% lower today in the final hour of trading as the bank gears up to report its earnings results for its second fiscal quarter of 2023 tomorrow morning. TD has also recently been sued over its failed acquisition of First Horizon (NYSE: FHN) .
Canadian banks are currently in their earnings season, and both Bank of Montreal and Bank of Nova Scotia reported earnings results today that came in weaker than expected. Bank of Montreal missed earnings today after reporting a rise in its provision for credit losses. It was a similar tale for Bank of Nova Scotia.
Analysts came into the quarter with concerns about the Canadian banking sector. Similar to the U.S., investors have become very worried about commercial loans in Canada. KBW analyst Mike Rizvanovic expects Canada's six largest banks to increase their provisions for credit losses by 28% collectively from the sequential quarter.
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Why Shares of Toronto-Dominion Bank Are Down Today