Toronto Dominion Bank (NYSE:TD), the Canadian lender, whizzed past analysts’ expectations in its fiscal second quarter thanks to a boost in profits from its retail business.
Net income from TD’s Canadian retail division came to C$1.83bn in the three months until April 30, up 17% from the year-ago quarter. These results were fueled by higher margins, new business and strong credit performance as well as a jump in trading volumes and assets under management from its wealth business.
The bank’s profits from its US retail business, meanwhile, amounted to US$979mln, up 16% from the same quarter last year. Its US retail bank, which excludes its investment in TD Ameritrade, reported net income of US$845mln, a 15% jump from last year’s quarter.
Looking at the results on a broader scale, on an adjusted basis, TD posted an overall profit of C$3.06bn, or C$1.62 per share, which beat analysts’ consensus estimate of C$1.50 per share. Its revenue came to C$9.5bn in the quarter.
Having tacked on higher mortgage rates, TD demonstrated its ability in the quarter to reap profits amid a slowdown in Canada’s housing market.
Toronto Dominion Bank’s shares were flat at US$59.35 in pre-market trade.