Photo: The Canadian Press
TD Bank Group reported a first-quarter profit of $3.7 billion, up from nearly $3.3 billion a year earlier, and beat expectations, helped by the strength of its Canadian and U.S. retail banking operations.
The bank said Thursday its profit amounted to $2.02 per diluted share for the quarter ended Jan. 31, compared with $1.77 per diluted share in the same quarter a year earlier.
Revenue totalled nearly $11.3 billion, up from $10.8 billion.
TD reported $72 million in provisions for credit losses for the quarter compared with $313 million a year earlier.
On an adjusted basis, TD says it earned $2.08 per diluted share, up from an adjusted profit of $1.83 per diluted share a year ago.
Analysts on average had expected an adjusted profit of $2.04 per share, according to financial markets data firm Refinitiv.
“Overall, this was a strong quarter for the Bank and as we look ahead, we remain focused on the opportunities to grow our business and deepen relationships with our customers,” TD chief executive Bharat Masrani said in a statement.
On Monday, TD announced a deal expand in the Southeastern U.S. with a deal to buy First Horizon Corp. for US$13.4 billion.
The acquisition builds on TD’s existing U.S. business, which is already one of the 10 largest banks in the U.S. With the First Horizon deal, TD said its U.S. franchise will be one of the top six U.S. banks, with about US$614 billion in assets and over 10.7 million customers across 22 states.
TD said Thursday its Canadian retail banking business earned $2.25 billion, up from $2.04 billion a year ago, helped by higher revenue and lower provisions for credit losses, partially offset by higher non-interest expenses.
In the U.S., TD said its retail banking business earned $1.27 billion, up from $1.00 billion a year earlier.
TD’s wholesale banking division, which includes its capital markets and corporate and investment banking services business, earned $434 million, down from $437 million a year earlier.
The corporate group reported a loss of $227 million compared with a loss of $197 million a year earlier.