Canadian Bank TD Slides After Q3 Results

Toronto-Dominion Bank TD reported third-quarter FY23 earnings of C$3 billion, down 8% year-over-year, and adjusted earnings of C$3.7 billion, down 2% Y/Y.

Adjusted EPS was C$1.99, down from C$2.09 a year ago. 

Total revenue grew 17% YoY to C$12.78 billion and on an adjusted basis +12.2% Y/Y to C$13.02 billion.

Canadian Personal and Commercial Banking delivered strong results on continued loan and deposit growth.  

Canadian Personal and Commercial Banking net income was C$1.655 billion (-1% Y/Y), and Revenue was C$4.570 billion (+7% Y/Y), reflecting volume growth and higher margins. 

U.S. Retail reported net income of C$1.314 billion (-9% Y/Y), and on an adjusted basis, C$1.377 billion (-6% Y/Y).

Wealth Management and Insurance net income were C$504 million (-12% Y/Y), and revenue increased by 1% Y/Y.

Wholesale Banking reported a net income of C$272 million, relatively flat YoY. On an adjusted basis, net income was C$377 million (+39% Y/Y); Revenue increased by 46%, reflecting the benefits of the Cowen Inc. acquisition.

Provision for credit losses rose to C$766 million from C$351 million a year ago. 

CET1 stood at 15.2% vs. 14.9% a year ago, and the adjusted return on common equity (ROE) was 14.1% vs. 16.1% the prior year.

The leverage ratio was 4.6% vs. 4.3% a year ago.

On May 4, 2023, the Bank terminated the previously announced merger agreement and made a C$306 million termination payment, which is recognized in non-interest expenses.

Dividend: The Bank announced a dividend per share of C$0.96, payable on and after October 31, 2023, to shareholders of record at the close of business on October 6, 2023.

Repurchase: Today, TD announced that it intends to launch a new normal course issuer bid to repurchase for cancellation up to 90 million of its common shares, representing approximately 4.9% of issued and outstanding shares.

Price Action: TD shares are trading lower by 1.98% at $60.31 on the last check Thursday.