T-D Bank's Earnings Drop on Hit From U.S. Tax Law
By Allison Prang
Toronto-Dominion Bank reported a drop in earnings in its first quarter as it was the latest financial institution to feel the effects of the new U.S. tax law.
The company said it made $2.35 billion Canadian dollars ($1.83 billion), or C$1.24 per share, down 7.1% from the C$2.53 billion, or C$1.32 per share the bank made in the same quarter a year ago. The bank said it reported a C$453 million one-time charge because of the new tax law in the U.S.
On an adjusted basis, TD made C$1.56 per share, up from C$1.33 per share a year ago. Analysts' polled by Thomson Reuters were expecting adjusted earnings of C$1.46 per share.
"While there are risks on the horizon, if these positive conditions persist, adjusted earnings growth for the full year may exceed our medium-term targets," Chief Executive Bharat Masrani said in prepared remarks.
The bank said profit in its Canadian retail business were up 12%, while profit in its U.S. retail business grew by 19%.
Total revenue rose by 2.6% to C$9.36 billion. Net interest income rose 5.6% to C$5.43 billion while noninterest income fell by 1.2% to C$3.93 billion.
The bank increased its provision for credit losses by 9.5% to C$693 million, while insurance claims stayed about flat. Noninterest expenses fell by 1% to C$4.85 billion.
On an adjusted basis, revenue was C$9.45 billion, up 4.1%, fueled by increases in both net interest income and noninterest income.
Shares in the past year have risen 6.5%.
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(END) Dow Jones Newswires
March 01, 2018 07:25 ET (12:25 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.