Results Largely As Expected for Toronto Dominion in the Second Quarter of 2022

Wide moat rated Toronto Dominion reported decent fiscal second-quarter earnings. Adjusted earnings per share were CAD 2.02, a small beat compared to the S&P GMI consensus of CAD 1.93 and representing a year-over-year decline of 1%. Provisioning remained quite low, at a net cost of only CAD 27 million, while the provision for credit losses, or PCL, ratio was only 1 basis point. We would expect these numbers to start normalizing higher eventually, but predicting the timing of such a normalization in credit remains difficult.