Toronto-Dominion Shares Slide as Deposit Costs Crunch Earnings

  • Non-interest costs up 24% as salaries and bonuses rise
  • Consumers are still resilient, chief financial officer says
A Toronto-Dominion bank branch in Canada’s largest cityPhotographer: Cole Burston/Bloomberg
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Toronto-Dominion Bank is feeling the impact of costlier deposits, which squeezed margins and contributed to the lowest profitability for its US business in more than a year.

Canada’s second-largest bank saw US retail-banking earnings drop to C$1.38 billion ($1.02 billion) on an adjusted basis in the fiscal third quarter, a 6% decline from a year earlier.