Toronto-Dominion Bank's Profit Rises Despite Expense Growth --update
28 Febrero 2019 - 8:32AM
Noticias Dow Jones
By Allison Prang
Toronto-Dominion Bank's first-quarter profit more than 2% from a
year earlier, helped by its investment in TD Ameritrade and a much
smaller provision for income tax.
--rose
At the same time, noninterest expenses -- the provision for
credit losses and insurances claims and related expenses --
increased by at least 20% each. Expenses outpaced revenue
growth.
The bank recorded higher expenses after closing deals to buy a
loyalty program from Air Canada and Greystone Capital
Management.
Speaking in an interview, Riaz Ahmed, chief financial officer,
made note of recent changes in the competitive landscape. The U.S.
regional-banking market was shaken up early in February, when
BB&T Corp. agreed to buy SunTrust Banks Inc., creating a larger
competitor in the Southeastern U.S. TD wants to expand its presence
in the region, but the bank doesn't feel compelled to rush to match
the deal, Mr. Ahmed said.
"Sellers still have the expectation of high prices," he said.
"As our U.S. franchise has matured, we have become more selective
in looking for the right target."
TD's capital ratio was 12%, giving the bank some cushion that
can be put to use. Mr. Ahmed said bank executives were
"comfortable" when the ratio was "in the low 10s," but said having
more capital hasn't put more pressure on them to do deals.
In the latest quarter, the bank spent money building out trading
desks in New York, Singapore and London to beef up its presence as
a dealer in the U.S. dollar foreign-exchange market, Mr. Ahmed
said.
TD announced a 10% dividend increase to C$0.67 ($0.51) a
share.
Total revenue at TD rose 6.6% to C$10 billion ($7.6
billion).
Overall, net income rose 2.4% from the year-earlier quarter to
C$2.39 billion, with per-share earnings of C$1.27, up from C$1.24.
Analysts polled by Refinitiv were expecting C$1.49 a share.
TD's provision for income taxes fell 52% to C$503 million. Its
equity in net income of an investment in TD Ameritrade more than
doubled to C$322 million.
Earnings on an adjusted basis edged up to C$1.57 a share from
C$1.56 a share, although analysts were expecting C$1.72 a
share.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
February 28, 2019 09:17 ET (14:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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