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TD Bank profit rises in Q3 amid revenue growth in retail banking

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Canada election: Trudeau promises to raise corporate income tax rate on big banks
Liberal Leader Justin Trudeau promised on Wednesday to raise the corporate income tax rate by three percentage rates on earnings over $1 billion for Canada’s big banks and insurance companies, adding that the government would ask them to “do a little bit more” to help Canada on the path to recovery. He said Canada’s banks have “continued to be incredibly successful, including through a pandemic where everyone else had to tighten their belts.” – Aug 25, 2021

TD Bank Group beat expectations as it reported a third-quarter profit of $3.55 billion, up from $2.25 billion in the same quarter last year.

The bank said Thursday the profit amounted to $1.92 per diluted share for the quarter ended July 31, up from $1.21 per diluted share a year earlier.

Revenue totalled $10.71 billion, up from $10.67 billion.

The results came as TD reported a recovery of credit losses of $37 million in its latest quarter compared with a provision for credit losses of $2.19 billion a year ago.

On an adjusted basis, TD says it earned $1.96 per diluted share, up from an adjusted profit of $1.25 per diluted share in its third quarter last year.

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Analysts on average had expected a profit of $1.92 per share, according to financial market data firm Refinitiv.

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TD CEO Bharat Masrani said the bank’s performance in the quarter was supported by revenue growth in its Canadian and U.S. retail businesses as economic activity picked up on both sides of the border.

“While businesses and consumers are resuming some of their normal activities and more people are getting vaccinated, recent developments and new variants remind us that the global pandemic is not yet over,” Masrani said in a statement.

“TD will continue to adapt in this fluid environment, adjust in real-time, and prioritize the well-being of our people and all those we serve.”

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TD said its Canadian retail business earned $2.13 billion in its latest quarter, up from $1.26 billion in the same quarter last year.

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In the U.S., TD said its retail business earned $1.3 billion, up from $673 million a year ago.

TD said wholesale banking, which includes its capital markets and corporate and investment banking business, earned $330 million, down from $442 million in the same quarter last year.

The bank also announced Thursday the appointment of Cherie Brant, a partner and national leader for the Indigenous law group at Borden Ladner Gervais LLP, to its board of directors.

Brant, who is both Mohawk from Mohawks of the Bay of Quinte and Ojibway from Wikwemkoong Unceded Indian Reserve, also serves on the board of Hydro One Ltd.

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