Toronto-Dominion Bank's second-quarter profit strengthens to $1.35B as ...
However, the results missed analyst expectations, with TD posting adjusted earnings per share of $1.62.
Analysts polled by Thomson Reuters were expecting profits to be a penny higher per share.
Revenue increased to $5.22 billion from $4.86 billion.
Provisions for credit losses, or the money put aside for bad loans, were reduced to $350 million compared with $372 million a year ago.
President and CEO Ed Clark said the North American economic picture is continuing to improve, but that improvement is gradual.
“We remain confident that 2011 will be a very good year for the bank as we continue to deliver strong operating results and invest for future growth.”
In its Canadian banking division net income grew 11 percent to CA$847 million ($US864 million) from CA$761 million (US$776 million) as it experienced strong volume growth in certain areas including business loans and deposits, as well as growth in personal deposits, mortgages and indirect lending.
“This was the second best quarter on record for Canadian personal and commercial banking, despite fewer days in the quarter and, as expected, some slowing in personal banking volume growth from the exceptional levels seen in 2010,” said Tim Hockey, head of Canadian banking at TD.
In the United States, personal and commercial banking profits rose 31 percent to $315 million from $241 million, amid a stabilizing credit environment in the U.S., the bank said.
In Canada’s concentrated banking system, five major banks dominate the market. The banks have been looking outside Canada to grow and while other Canadian banks have struggled to expand in the U.S., TD promotes itself as the first truly North American bank.
TD didn’t have a presence in U.S. six years ago, but now has more than 1,300 branches in the country compared to more than 1,100 in Canada. TD is North America’s sixth largest bank by branches.
Last year, TD agreed to buy the risky assets of three insolvent Florida banks worth $3.8 billion, giving it 69 more sites in Florida. Riverside National Bank of Florida, First Federal Bank of North Florida and AmericanFirst Bank were all purchased with the help of U.S. Federal Deposit Insurance Corp.
TD also owns about 40 percent of TD Ameritrade, a discount brokerage based in the U.S. Midwest.
Shares of TD Bank slipped $1.73 to $85.05 on the New York Stock Exchange in morning trading.
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