Toronto-Dominion Bank earnings slide, expects FY23 EPS growth below…

Toronto-Dominion Bank earnings slide, expects FY23 EPS growth below…

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  • The Toronto Dominion Bank TD reported an increase in adjusted net income of 1% Y/Y to CAD$3.8 billion.
  • Adjusted earnings per share were $1.94. less than 2.02 CAD a year ago.
  • Revenues in Canadian Personal & Commercial Banking totaled $1.63 billion (+4% YoY) and Wealth Management & Insurance was $563 million (-16% YoY).
  • US retail revenues were up 3% year-on-year to CA$1.41 billion, with US retail banking revenues at CA$1.16 billion (+2% year-on-year). Net profit in Wholesale Banking was CA$150 million (-58% YoY).
  • Provision for loan losses increased to $599 million from $27 million in the prior year.
  • Adjusted revenue increased to $12.5 billion from $11.0 billion in the prior year.
  • Common Equity Tier 1 (CET1) was 15.3%, up from 14.7% a year ago, and adjusted return on equity (ROE) was 14.1%, up from 15.9% a year ago.
  • The leverage ratio was 4.6% versus 4.3% a year ago.
  • During the second quarter, the bank completed the acquisition of Cowen Inc. for CA$1.5 billion in cash, CA$253 million to settle Cowen’s Series A preferred stock and CA$205 million in replacement stock-based compensation awards.
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  • outlook: For fiscal 2023, TD does not expect to achieve its mid-term adjusted EPS growth target of 7% to 10% due to the challenging macroeconomic environment mutual termination of the merger agreement with First Horizon Corp FHN.
  • “TD’s retail businesses in both Canada and the United States continued to post strong sales and earnings growth this quarter with resilient customer lending and loan volumes. Investments in differentiated wealth and insurance products and the completion of the Cowen acquisition broadened our offering and strengthened these companies’ competitive advantages,” said Bharat Masrani, Group President and CEO.
  • dividend: The bank announced a dividend per share of C$0.96, payable beginning July 31, 2023 to shareholders of As of July 10, 2023.
  • buyback: Today, TD announced a normal issuer buyback offer for…



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