TD Profit Rises 16% as Takeovers Lift Retail BankingDoug Alexander
Toronto-Dominion Bank, Canada’s largest lender by assets, said second-quarter profit rose 16 percent as credit-card acquisitions helped lift consumer banking earnings in Canada and the U.S.
Net income for the period ended April 30 climbed to C$1.99 billion ($1.82 billion), or C$1.04 a share, from C$1.72 billion, or 89 cents, a year earlier, the Toronto-based lender said today in a statement. Adjusted earnings, which exclude some items, were C$1.09 a share, beating the C$1.02 average estimate of 12 analysts surveyed by Bloomberg.
Domestic retail bank earnings were bolstered by the company’s purchase of a C$3.3 billion Visa card portfolio from Canadian Imperial Bank of Commerce in December. Acquisitions including Target Corp.’s U.S. credit-card portfolio and New York-based money manager Epoch Holding Corp. aided U.S. results.
“By any measure, our results this quarter were outstanding,” said Chief Executive Officer Ed Clark, 66, who is scheduled to retire Nov. 1. Adjusted earnings were “driven by strong organic growth and contributions from our recent acquisitions.”
CIBC sold half its Aerogold Visa receivables after loyalty-program company Aimia Inc. ended its 22-year exclusive partnership with the bank in August and chose Toronto-Dominion as its primary partner.
Royal Bank of Canada earlier today posted a 15 percent increase in profit, beating analysts’ estimates, on record earnings from wealth management and a lift from trading.
(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/qr-2014.jsp.)