TD Bank Group reports $2.96B Q3 profit, down from $3.21B year ago

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TORONTO — TD Bank Group reported its third-quarter profit fell compared with a year ago as its provisions for credit losses rose.

The bank said Thursday its net income totalled $2.96 billion or $1.57 per diluted share for the quarter ended July 31, down from $3.21 billion or $1.75 per diluted share a year earlier.

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Revenue totalled $12.78 billion, up from $10.93 billion in the same quarter last year.

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Provisions for credit losses amounted to $766 million, up from $351 million a year earlier.

On an adjusted basis, TD says it earned $1.99 per diluted share in its latest quarter, down from $2.09 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of $2.04 per diluted share, based on estimates compiled by financial markets data firm Refinitiv.

“TD delivered strong revenue growth in the quarter and demonstrated the value of its diversified business mix in a challenging economic environment,” TD chief executive Bharat Masrani said in a statement.

TD said its Canadian personal and commercial banking business earned $1.66 billion compared with $1.68 billion in the same quarter last year, mainly due to higher provisions for credit losses, partially offset by revenue growth.

The bank’s U.S. retail operations earned $1.31 billion, down from $1.44 billion a year earlier as it faced charges related to its unsuccessful attempt to buy U.S. bank First Horizon Corp.

Meanwhile, TD’s wealth management and insurance operations earned $504 million, down from $575 million a year ago, as it faced more severe weather-related events and lower transaction revenue in wealth management.

TD’s wholesale banking earned $272 million compared with $271 million a year ago.

This report by The Canadian Press was first published Aug. 24, 2023.

Companies in this story: (TSX:TD)