TD Bank Group reports $6.67B Q4 profit, up from $3.78B a year ago

Photo: The Canadian Press

TD Bank Group reported a fourth-quarter profit of $6.67 billion, up from $3.78 billion in the same quarter last year, boosted by a one-time gain related to its deal to buy U.S.-based First Horizon Bank and the sale of Schwab shares.

The bank said Thursday the profit amounted to $3.62 per diluted share for the quarter ended Oct. 31, up from $2.04 per diluted share a year earlier.

Revenue totalled $15.56 billion, up from $10.94 billion a year ago.

TD says provisions for credit losses totalled $617 million in its latest quarter compared with a $123-million recovery of credit losses in the same quarter last year.

On an adjusted basis, TD says it earned $2.18 per diluted share in its fourth quarter compared with an adjusted profit of $2.09 per diluted share in its fourth quarter last year.

Analysts on average had expected a profit of $2.06 per share, according to estimates compiled by financial markets data firm Refinitiv.

"I'm extremely pleased with our earnings performance this quarter, which capped off a strong year demonstrating the benefit of our diversified business model and prudent risk and financial management," TD chief executive Bharat Masrani said in a statement.

"The strength and resilience of our franchise enabled the Bank to invest in our business and deliver for our shareholders."

TD said its Canadian personal and commercial banking business earned $1.69 billion in its latest quarter, up from $1.53 billion in the same quarter last year.

TD's U.S. retail business, which includes its investment in the Charles Schwab Corp., earned $1.54 billion, up from $1.37 billion a year ago.

Meanwhile, TD's wealth management and insurance segment earned $516 million, down from $608 million in the same quarter last year, and its wholesale banking business earned $261 million, down from $420 million in the fourth quarter last year.

TD's corporate segment reported a profit of $2.66 billion, compared with a loss of $150 million a year ago as it saw a gain related to its First Horizon acquisition and a lift from the Schwab shares in its most recent quarter.

For its full year, TD reported a profit of$17.43 billion or $9.47 per diluted share on $49.03 billion in revenue compared with a profit of $14.30 billion or $7.72 per diluted share on $42.69 billion in revenue in the previous year.