Toronto-Dominion First-Quarter Profit Falls on Litigation Costs in Florida
Toronto-Dominion Bank (TD), Canada’s second-largest bank, said profit declined for the first time in more than a year after it recorded litigation costs related to a Ponzi scheme in Florida. The lender boosted its quarterly dividend 5.9 percent.
Net income for the period ended Jan. 31 fell 5.3 percent to C$1.48 billion ($1.5 billion), or C$1.55 a share, from C$1.56 billion, or C$1.67, a year earlier, the Toronto-based bank said today in a statement.
Toronto-Dominion recorded costs of C$171 million for litigation related to disbarred Florida attorney Scott Rothstein, who admitted running a $1.2 billion Ponzi scheme. The bank lost a $67 million jury verdict in January over an investor group’s claims the lender helped Rothstein.
Excluding the litigation reserve and other one-time items, Toronto-Dominion said it earned C$1.86 a share. That topped the C$1.77-a-share average estimate of 15 analysts surveyed by Bloomberg News.
The bank boosted its quarterly dividend to 72 cents a share, from 68 cents.
Toronto-Dominion rose 0.6 percent to C$80.83 in trading on the Toronto Stock Exchange yesterday. The shares have risen 6 percent this year, compared with a 5.5 percent gain on the 10- member S&P/TSX Banks Index (STBANKX).
(Toronto-Dominion will hold a conference call at 3 p.m. Toronto time to discuss the results. To listen, visit http://www.td.com/investor/qr_2012.jsp or dial +1-416-644-3415 or +1-877-974-0445.)
To contact the reporter on this story: Sean B. Pasternak in Toronto at firstname.lastname@example.org.