Toronto-Dominion Bank Stock Gains Post Q2 Results, Clocks 10% Revenue Growth

Toronto-Dominion Bank TD TD reported a second-quarter net income of C$3.8 billion, an increase of 3% year-over-year, and an adjusted net income of C$3.7 billion (-2% Y/Y).

Adjusted EPS was C$2.02, down 1% Y/Y. Revenue was C$11.26 billion, an increase of 10% Y/Y; adjusted revenue increased 8% Y/Y to C$11.04 billion.

Increased revenue reflects volume and margin growth and higher fee-based revenue in banking businesses and prior year premium rebates for insurance customers.

Canadian Retail earnings totaled C$2.2 billion (+2% Y/Y) for Q1, with Canadian P&C of C$1.57 billion (+9% Y/Y), Wealth of C$421 million (-14% Y/Y), and Insurance of C$247 million (flat Y/Y).

U.S. Retail earnings were up 3% Y/Y to US$1.08 billion, with U.S. Retail Bank of US$902 million (+6% Y/Y). Wholesale Banking net income was C$359 million (-6% Y/Y).

Adjusted expenses were up 6.5% Y/Y to C$6 billion.

Provision for credit losses of $27 million. CET1 14.7% was up 50 bps at 14.7%, and the net interest margin was 1.64%, up 8 bps.

Risk-Weighted Assets (RWA) increased 3.9% quarter-over-quarter, reflecting higher Credit Risk RWA and Market Risk RWA.

The leverage ratio for the quarter was 4.3, compared to 4.6 in 1Q21.

Return on common equity (ROE) was 16.4% vs. 16.7%, and adjusted ROE was 15.9% vs. 17.1% a year ago.

Price Action: TD shares are trading higher by 2.49% at C$96.09 on TSX, and TD is higher by 2.69% at $75.23 on NYSE on the last check Thursday.

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