Toronto-Dominion Profit Falls 10% on Weather Insurance Costs
Toronto-Dominion Bank (TD), Canada’s second-largest lender, said quarterly profit fell 10 percent after posting insurance losses from severe weather claims in its home country. The bank raised its dividend 4.9 percent to 85 cents a share.
Net income for the period ended July 31 fell to C$1.53 billion ($1.46 billion), or C$1.58 a share, from C$1.7 billion, or C$1.78, a year earlier, the Toronto-based lender said today in a statement. Revenue rose 1.9 percent to C$5.95 billion from a year earlier.
Rain-swollen rivers caused flooding in southern Alberta in June and a record deluge in Toronto submerged parts of Canada’s most populous city on June 8, hurting insurance results. The bank said its wealth-management and insurance unit had profit of C$7 million, down from C$360 million a year earlier.
Toronto-Dominion, the last of Canada’s six biggest banks to report quarterly results, said earnings excluding some items were C$1.65 a share, beating the C$1.53 average estimate of 11 analysts surveyed by Bloomberg.
(Toronto-Dominion will hold a conference call at 3 p.m. Toronto time. To listen, dial +1-416-644-3415 or +1-877-974-0445, or visit http://www.td.com/investor-relations/ir-homepage/ir-homepage/investor-index.jsp.)
To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.org