Thursday, April 17th11.7°C
17283
20944

TD Bank Q4 profit rises to $1.62 billion, adjusted earnings up but miss estimate

TORONTO - Toronto-Dominion Bank (TSX:TD) chief executive Ed Clark said challenges in its insurance and wholesale business this year led to underwhelming results, as earnings climbed a meagre one per cent.

The bank capped the fourth quarter with a profit of $1.62 billion, or $1.68 per common share compared with a profit of $1.6 billion or $1.66 per share a year ago.

Analysts were looking for $1.99 per share of adjusted earnings, which was nine cents higher than the $1.90 a share the bank delivered, according to data compiled by Thomson Reuters.

But it was the entire year that fell short of Clark's expectations.

TD Bank's full-year adjusted profits were $7.16 billion compared to $7.08 billion in 2012.

Total revenue increased to $27.26 billion from $25.55 billion.

"These headline numbers are not what we would hope for," Clark told analysts during the company's earnings results conference call, wrapping up the financial year.

Most of TD's major units showed increases during the quarter, but net income from wholesale banking fell by 61 per cent to $122 million from a year earlier, due to lower security gains and higher non-interest expenses.

TD's main Canadian banking arm had $914 million of net income in the quarter, up from $806 million a year earlier, while adjusted net income was $948 million — up 14 per cent from a year earlier.

The increase in adjusted earnings at the Canadian banking unit was driven by loan and deposit volume growth, favourable credit performance, and effective cost management, the bank said.

In the U.S., retail and commercial banking rose 17 per cent to $369 million.

Wealth management operations climbed by 38 per cent to $405 million, though the results were helped by the recent acquisition of Epoch Investment Partners.

TD Bank also booked $129 million in restructuring charges that were related to initiatives that were designed to lower the cost of its branches.

Executives were cagey over exactly what the bank was doing to "optimize" its branch network and "streamline other operations," as chief financial officer Colleen Johnston put it.

"We have fine tuned the network a bit on both sides of the border," she said. "We are, in fact, continuing to ... open new branches."

TD also announced it will issue a one-for-one stock dividend to common shareholders on Jan. 31. The quarterly cash dividend will also rise by one cent to shareholders of record as of Jan. 6. The new shares issued in the stock split won't be eligible for the January payment, which will be 86 cents per share.

Shares of the bank ended the session $1.35 lower to $94.40 on the Toronto Stock Exchange.

The Canadian Press


Read more Business News

21596


Recent Trending




Today's Market
S&P TSX14500.39+53.87
S&P CDNX998.770.80
DJIA16408.54-16.31
Nasdaq4095.516+9.291
S&P 5001864.85+2.54
CDN Dollar0.9083-0.0001
Gold1293.80-9.2999
Oil104.59+0.83
Lumber326.10-2.70
Natural Gas4.735+0.205

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.29+0.07
Cantex0.055+0.01
Anavex Life Sciences0.3750.00
Metalex Ventures0.08+0.005
Russel Metals30.66+0.11
Copper Mountain Mining2.35-0.07
Colorado Resources0.255-0.01
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 
19691


20880

FEATURED Property
152004931 - 2098 Boucherie
3 bedrooms 2 baths
$99,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...


Quick and nimble

Photo: ContributedFor many businesses this has been a tremendously difficult time since the 2008 crisis. Business fell off. Sales techniques that always worked, well… stopped working. Customers...

_



21641

21604


Member of BC Press Council


21202