The Toronto-Dominion Bank ( NYSE: TD ) ( TSX: TD:CA ) posted fiscal Q1 earnings above the average Wall Street consensus as its Canadian and U.S. retail businesses each delivered robust revenue growth and record earnings. TD edged higher by 1.1% in premarket trading.
The Canadian bank confirmed its discussions with First Horizon ( FHN ) on a potential extension to complete its $13.4B acquisition beyond May 27.
Adjusted EPS for the three months ended Jan. 31, 2023, was C$2.23 (US$1.64), vs. C$2.20 consensus, advanced from C$2.18 in Q4 and from C$2.08 in the year-earlier quarter.
Similarly, adjusted revenue of C$13.10B (US$9.63B), exceeding the C$11.99B consensus, rose from $12.25B in the prior quarter and from $11.28B a year before.
Net interest income was C$7.73B in Q1, up from $7.63B in Q4 and from C$6.30B Y/Y.
Provision for credit losses came in at C$690M compared with C$617M in Q4 and C$72M in Q1 2022.
Total loans, net of allowance for loan losses, increased to C$836.7B from C$831.0B in Q4. Total deposits of C$1.22T vs. C$1.23T in Q4.
Adjusted return on common equity was 16.1% vs. 16.0% in Q4 and 15.7% in the year-ago period.
Canadian Personal and Commercial Banking net income of C$1.73B gained 2.1% Q/Q and 6.9% Y/Y; total revenue of C$4.59B climbed 3% Q/Q and 17% Y/Y.
U.S. Retail adjusted net income of C$1.37B grew 6.9% Q/Q and 34.1% Y/Y; total revenue of C$3.77B rose 4.7% Q/Q and 35.1% Y/Y.
Wealth Management & Insurance net income of C$550M perked up 6.6% Q/Q and slid 13.5% from a year ago; total revenue of C$2.90B increased 10.3% Q/Q and 3.7% Y/Y.
Conference call at 1:30 p.m. ET.
Earlier, TD Bank declared a quarterly dividend of C$0.96 per share .
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TD Bank fiscal Q1 earnings buoyed by strong Canadian, U.S. retail segments