TD Bank Q2 earnings beat with strong net interest income, retail performance (NYSE:TD) – Seeking Alpha

Written by Amanda

TD Bank Q2 earnings beat with strong net interest income, retail performance (NYSE:TD)  Seeking Alpha

Low angle view of the top of high-rise office building TD Canada Trust Tower in Calgary downtown with logo of the company and cloudy sky in the evening.

Timon Schneider/iStock Editorial via Getty Images

TD Bank Group (NYSE:TD) fiscal Q2 earnings exceeded the consensus estimate as higher interest rates helped to boost the bank’s net interest income and loans and deposits increased. Solid performance at its retail banking units helped offset weakness in its wholesale banking business.

Adjusted EPS for the quarter ended April 30 was C$2.02 (US$1.57), topping the C$1.93 consensus, but down from C$2.08 in Q1 and C$2.04 in the year-ago quarter.

Q2 net interest income of C$6.38B (US$4.96B) vs. C$6.30B in the prior quarter and C$5.84B in Q2 2021.

Total loans, net of allowance for loan losses, increased to C$765.0B from C$743.6B in Q1.

Total deposits of C$1.18T vs. C$1.16T in the previous quarter.

Q2 adjusted return on common equity of 15.9% from 15.7% in Q1 and from 17.1% in the year-ago quarter.

TD Bank’s (TD) Canadian Retail net income of C$2.24B was little changed from C$2.25B in the previous quarter and increased from C$2.18B in the year-ago period. Revenue increased 9% Y/Y on strong volume growth and other income, while expenses also climbed 9% on investments to support business growth, including technology improvements, higher employee-related expenses and variable compensation.

U.S. Retail adjusted net income of C$1.20B vs. C$1.27B in the prior quarter and C$1.32B in the year-ago quarter. TD Bank’s (TD) investment in Charles Schwab (SCHW) contributed C$244M to earnings, a decrease of 9% from a year ago.

The U.S. Retail Bank saw adjusted net income fall 9% from a year ago, driven primarily by a lower recovery in performing provision for credit losses, lower income from PPP loans, higher employee-related expenses, and business expenses, partly offset by higher deposit volume and margin and increased earnings on the investment portfolio and customer activity.

Wholesale Banking net income of C$359M vs. C$434M in the previous quarter and $383M in the year-ago quarter.

Conference call at 1:30 PM ET

Earlier, TD Bank (TD) non-GAAP EPS of C$2.02 beats by C$0.09, revenue of C$11.26B beats by C$1.08B

Source: seekingalpha.com

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