TD grows fourth-quarter profit by 25% to $2.3 billion

By Staff, with files from The Canadian Press | December 1, 2016 | Last updated on December 1, 2016
2 min read

TD Bank Group’s fourth-quarter earnings are $2.3 billion, up 25% on a reported basis and 8% on an adjusted basis compared with the same quarter last year. This reflects growth in the U.S. retail and wholesale segments.

Reported earnings for the year are $8.9 billion (or $4.67 per share), an increase of 11% over last year, and adjusted earnings are $9.3 billion, increased by 6%.

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The bank earned $8.75 billion of revenue during the quarter, up from $8.05 billion a year ago. The bank’s annual revenue is $34.32 billion, up from $31.43 billion last year.

Canadian retail: Net income is $1.502 billion, compared with $1.496 billion in the same quarter last year. Revenue growth of 3% and lower insurance claims were largely offset by higher non-interest expenses, the impact of a higher effective tax rate and higher provisions for credit loss.

U.S. retail: Net income is $701 million (US$536 million), compared with $595 million (US$452 million) on a reported basis and $646 million (US$491 million) on an adjusted basis for the fourth quarter last year.

The U.S. retail bank, which excludes the bank’s investment in TD Ameritrade, generated net income of $608 million (US$465 million), an increase of 25% (26% in U.S. dollars) on a reported basis and 13% (14% in U.S. dollars) on an adjusted basis, compared with the fourth quarter last year. The growth in earnings reflects revenue growth, strong operating leverage, increased loan and deposit volume, and good credit quality.

TD Ameritrade contributed $93 million (US$71 million) in earnings to the segment compared with $109 million (US$84 million) for the same quarter last year.

Wholesale banking: Net income is $238 million, an increase of 21% compared with the fourth quarter last year, reflecting revenue growth from higher origination activity in debt and equity capital markets, and fixed income trading, partially offset by lower equity trading revenue and advisory fees.

Capital: TD’s common equity tier 1 capital ratio on a Basel III fully phased-in basis was 10.4%.

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Staff, with files from The Canadian Press

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