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TD revenue up, earnings slip in what the bank calls a 'challenging environment'

TORONTO — TD Bank Group’s profit slipped in the fourth quarter compared with a year ago, missing analyst estimates for adjusted earnings.  

The bank says it earned $2.86 billion or $1.54 per share in the quarter ending Oct. 31, three per cent down from $2.96 billion or $1.58 per share a year earlier.

Earnings were down as provisions for credit losses rose $221 million, or 28.5 per cent, to $891 million.

For the full year, TD saw net income grow three per cent despite challenges, said CEO Bharat Masrani.

“We generated earnings growth amidst a challenging macroeconomic environment while we made strategic investments to strengthen our business, deliver for our customers, and modernize and simplify our operations.”

On an adjusted basis for the quarter, TD says had a net income available to shareholders of $2.88 billion, or $1.59 per diluted share, down from $3 billion, or $1.63 per, share last year.

Revenue was $10.34 billion, up from the $10.14 billion a year ago.

Analysts had $1.74 per share of adjusted earnings, on revenue of $9.85 billion, according to financial markets data firm Refinitiv.

The bank says Canadian and U.S. retail banking saw earnings rise, while income from wholesale banking was down $126 million, or 44 per cent, from a year earlier on impacts of derivative valuation charges connected to upgrades to the valuation system and related methodologies.

Earnings from the company’s stake in brokerage TD Ameritrade were US$219 million, up 25 per cent from last year. On Nov. 25, TD announced it would exchange its 43 per cent stake in TD Ameritrade for a 13.4 per cent stake in Charles Schwab Corp. as part Schwab’s proposed US$26 billion takeover of the brokerage.

This report by The Canadian Press was first published Dec. 5, 2019.

Companies in this story: (TSX:TD)

 

The Canadian Press