TD tops estimates as higher rates and loan activity boost Q3 profit
BNN Bloomberg
Toronto-Dominion Bank beat third-quarter profit expectations thanks to growth in its core banking operations in Canada and the United States.
Stripping out one-time costs, including $22 million in charges relating to its planned acquisition of First Horizon Corp, TD's adjusted earnings per share worked out to $2.09, exceeding the average analyst estimate by five cents. The institution reaped the benefit of higher interest rates as its net interest margin — which measures the difference between how much a bank generates from interest on loans versus how much it pays in interest — expanded to 1.74 per cent from 1.64 in the prior quarter.
Overall profit was weighed down by $351 million in provisions for credit losses, which was the most that TD had set aside for loans that could eventually go bad since the fourth quarter of 2020.
"In a complex macroeconomic environment, we are well-positioned to continue investing in our business and create long-term value for our shareholders,” said TD president and chief executive Bharat Masrani in the release.
