Analyst Note| Eric Compton, CFA |
Wide-moat-rated Toronto-Dominion reported okay fiscal second-quarter earnings. Adjusted earnings per share were CAD 2.04, representing solid year-over-year growth compared with adjusted EPS of CAD 0.85 from last year. Provisioning was the major swing factor, coming in at a net benefit of CAD 377 million compared with a cost of CAD 3.2 billion in the second quarter last year. This aligns with our view that the Canadian banks will be fine and that better results should be returning in 2021.