Toronto-Dominion Bank Shares Rise After Q2 Results, Post 10% Revenue Growth

Toronto-Dominion Bank TD TD reported a net income of C$3.8 billion in the second quarter, a 3% year-over-year increaseand an adjusted net profit of 3.7 billion Canadian dollars (-2% year-on-year).

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

The increase in revenue reflects growth in volumes and margins and higher commission-based revenue in banking and prior year premium rebates for insurance customers.

Canadian retail profits totaled C$2.2 billion (+2% YoY) for the first quarter, with Canadian damages of C$1.57 billion (+9% YoY) year-on-year), wealth of C$421 million (-14% year-on-year) and insurance. of 247 million Canadian dollars (fixed Y/Y).

US retail profits increased 3% year-on-year to US$1.08 billion, with US Retail Bank at US$902 million (+6% year-on-year). Wholesale Banking net income was C$359 million (-6% year-on-year).

Adjusted spending increased 6.5% year-over-year to C$6 billion.

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

Risk-weighted assets (RWA) increased 3.9% quarter over quarter, reflecting higher RWAs for credit risk and market risk.

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

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

Price action: TD shares are trading up 2.49% at C$96.09 on the TSX, and TD is up 2.69% at $75.23 on the NYSE when last checked on Thursday.

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