Winnipeg Free Press - PRINT EDITION

Insurance, wholesale stifle TD

  • Print

TORONTO -- Toronto-Dominion Bank chief executive Ed Clark said challenges in its insurance and wholesale business this year led to underwhelming results, as earnings climbed a meagre one per cent.

The bank capped the fourth quarter with a profit of $1.62 billion, or $1.68 per common share compared with a profit of $1.6 billion or $1.66 per share a year ago.

Analysts were looking for $1.99 per share of adjusted earnings, which was nine cents higher than the $1.90 a share the bank delivered, according to data compiled by Thomson Reuters.

But it was the entire year that fell short of Clark's expectations.

TD Bank's full-year adjusted profits were $7.16 billion compared to $7.08 billion in 2012.

Total revenue increased to $27.26 billion from $25.55 billion.

"These headline numbers are not what we would hope for," Clark told analysts during the company's earnings results conference call, wrapping up the financial year.

Most of TD's major units showed increases during the quarter, but net income from wholesale banking fell by 61 per cent to $122 million from a year earlier, due to lower security gains and higher non-interest expenses.

TD's main Canadian banking arm had $914 million of net income in the quarter, up from $806 million a year earlier, while adjusted net income was $948 million -- up 14 per cent from a year earlier.

The increase in adjusted earnings at the Canadian banking unit was driven by loan and deposit-volume growth, favourable credit performance and effective cost management, the bank said.

In the U.S., retail and commercial banking rose 17 per cent to $369 million.

Wealth-management operations climbed by 38 per cent to $405 million, though the results were helped by the recent acquisition of Epoch Investment Partners.

TD Bank also booked $129 million in restructuring charges related to initiatives designed to lower the cost of its branches.

TD also announced it will issue a one-for-one stock dividend to common shareholders on Jan. 31. The quarterly cash dividend will also rise by one cent to shareholders of record as of Jan. 6. The new shares issued in the stock split won't be eligible for the January payment, which will be 86 cents per share.

Shares of the bank ended the session $1.35 lower to $94.40 on the Toronto Stock Exchange.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition December 6, 2013 B6

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Andrew Ladd reflects on the season

View more like this

Photo Store Gallery

  • horse in sunset - marc gallant
  • A young goose   reaches for long strands of grass Friday night near McGillvary Blvd-See Bryksa 30 Day goose challenge- Day 19 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think Manitoba needs stronger regulations for temporary workers?

View Results

View Related Story

Ads by Google