Toronto-Dominion Bank (NYSE:TD) posted fiscal Q2 earnings that fell short of the average analyst estimate as its Wealth Management & Insurance and Wholesale Banking businesses remained weak in the quarter, partly offset by growth in its Canada Personal & Commercial Banking and U.S. businesses.
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The bank also announced a plan to buy back and cancel up to 30M of its common shares, representing about 1.6% of its 1.84B common shares outstanding as of April 30.
Since the end of the quarter, TD Bank (TD) and First Horizon (FHN) called off their merger agreement.
Adjusted EPS for the quarter ended April 30, 2023 was C$1.94 (US$1.43), missing the C$2.09 consensus estimate, and declining from C$2.23 in Q1 and C$2.02 in Q2 2022.
Adjusted revenue of C$12.5B (US$9.19), exceeding the $12.4B consensus, slipped from C$13.1B in the previous quarter and increased from C$11.0B in the year-ago period.
Net interest income of C$7.43B fell from C$7.73B in Q2 and climbed from C$6.38B in Q2 2022.
Provision for credit losses of C$599M decliend from C$690M in the prior quarter and jumped from C$27M in the same quarter a year ago.
Total loans, net of allowance for loan losses, rose to C$849.6B from C$836.7B in the prior quarter. Total deposits of C$1.19T declined from C$1.22T in Q1.
Adjusted return on common equity was 14.1% vs. 16.1% in the previous quarter and 15.9% in the year-ago quarter.
Canadian Personal & Commercial Banking net income of C$1.63B fell 6% Q/Q and rose 4% Y/Y; total revenue of C$4.40B dropped 4% Q/Q and increased 11% Y/Y.
U.S. Retail adjusted net income of C$1.53B slipped 8% Q/Q and rose 28% Y/Y; adjusted total revenue of C$2.65B fell 5% Q/Q and rose 24% Y/Y. The adjusted net income figure excludes acquisition and integration-related charges for First Horizon (FHN) of C$154M. That deal was terminated earlier in May.
Wealth Management & Insurance net income of C$563M rose 2% Q/Q and dropped 16% Y/Y; total revenue of C$2.74B slid 8% Q/Q and increased 2% Y/Y.
Wholesale Banking adjusted net income of C$213M, down 39% Q/Q and 41% Y/Y; revenue of C$1.42B increased 5% Q/Q and 13% Y/Y.
Conference call at 1:30 PM ET.
Earlier, TD Bank (TD) non-GAAP EPS of C$1.94 misses by C$0.15, revenue of C$12.54B beats by C$130M
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