In anticipation of a year-end global resolution of the investigations into its anti-money laundering (AML) practices by U.S. regulators, Toronto-Dominion Bank (TD) has taken a further provision of $2.6 billion in its fiscal third-quarter results. In addition to the $450-million provision announced in April, TD estimates that it will have to pay $3 billion in connection with its compliance failures. Bharat Masrani, the CEO of TD Bank, stated, "We recognize the seriousness of our US AML program deficiencies. ...

Financial Data and Key Metrics Changes - The company reported earnings of $3.6 billion and EPS of $2.05, with revenue growth of 8% year-over-year driven by higher fee income and deposit margins [6][19] - The Common Equity Tier 1 (CET1) ratio was 12.8%, reflecting the impact of AML provisions and share buybacks during the quarter [9][27] - Adjusted earnings were flat year-over-year, while adjusted expenses increased due to investments in risk and control infrastructure [19][20] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking achieved record revenues of $5 billion, with net income up 13% year-over-year, driven by loan and deposit growth [10][21] - U.S. Retail Bank saw consumer loans grow by 8% year-over-year, with proprietary bank card balances up 16% [13][23] - Wealth Management and Insurance segment reported record revenue growth of 13% year-over-year, despite increased claims from severe weather events [14][24] Market Data and Key Metrics Changes - The Canadian market showed strong loan and deposit growth, with average loan volumes rising 6% year-over-year [22] - In the U.S. market, average loan volumes increased by 5% year-over-year, with stable deposit volumes [23] - Wholesale Banking revenues increased by 14% year-over-year, reflecting broader capabilities and higher trading-related revenue [16][26] Company Strategy and Development Direction - The company is focused on enhancing its AML remediation program, with significant investments in data, technology, and staffing to improve transaction monitoring [7][51] - The strategy includes a commitment to maintaining a strong capital position and prudent management of capital levels amidst economic volatility [34][62] - The company aims to leverage its digital banking capabilities and customer experience to drive future growth [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment with significant market volatility and evolving rate expectations [16][17] - There is a cautious approach from retail and business clients, but the company remains committed to supporting them through the upcoming months [17] - The management expressed confidence in the strength of the franchise and the ability to navigate through uncertainties [16][56] Other Important Information - The company completed its restructuring program, delivering efficiencies across the enterprise while prioritizing investments in risk and control infrastructure [8][20] - The company has made donations to support communities affected by severe weather events, reflecting its commitment to corporate social responsibility [14] Q&A Session Summary Question: Capital considerations regarding the sale of Schwab stake - Management explained the need to maintain a well-capitalized position due to economic volatility and the prudent approach to capital management [34][36] Question: Future capital levels and AML provisions - Management confirmed that the current estimate for AML provisions is $2.6 billion, with a target CET1 ratio between 12% and 12.5% [35][36] Question: Expense growth guidance - Management indicated that high single-digit expense growth is driven by increased risk and control costs, strong performance in markets-related businesses, and litigation expenses [40][41] Question: Impact of AML investments on operational expenses - Management clarified that while some AML-related hires may be temporary, a structural increase in operational expenses is expected to support a robust AML program [41][52] Question: Concerns about U.S. franchise performance amid potential asset caps - Management reassured that the U.S. franchise continues to perform well, with strong loan growth and stable deposits, despite ongoing AML investments [55][56]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Key Takeaways TD Bank shares fell Thursday morning after the bank reported a surprise loss for the third quarter of fiscal 2024. The net loss was driven by one-time expenses, including billions of dollars set aside for expected fines over investigations into its anti-money laundering practices. TD's earnings also missed estimates after adjusting for one-time expenses. TD Bank (TD) shares lost ground in early trading Thursday after reporting a surprise third-quarter loss, thanks to billions of dollars the co ...

Toronto-Dominion Bank (TD) came out with quarterly earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.67%. A quarter ago, it was expected that this retail and wholesale bank would post earnings of $1.35 per share when it actually produced earnings of $1.50, delivering a surprise of 11.11%. Over the last four ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Toronto-Dominion Bank (TD) , which belongs to the Zacks Banks - Foreign industry, could be a great candidate to consider. When looking at the last two reports, this retail and wholesale bank has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 7.32%, on average, in the last two quarters. For the last report ...

If you are looking at the financial sector, here's why this bank, with a 5.1% yield, should be on top of your investment wish list. Toronto-Dominion Bank (TD 0.79%) is yielding 5.1% right now, which is at the high end of the stock's historical yield range. If that's not enough to entice you to invest $1,000, that yield is also around twice the 2.5% yield you'd collect from the average bank, using SPDR S&P Bank ETF as a benchmark. Before you run out and buy the stock, here's a deeper look at why TD Bank is t ...

The market expects Toronto-Dominion Bank (TD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be r ...

The Yahoo Finance View: TD Bank offers a wide range of mortgage products for all types of borrowers and financial goals, and it charges lower mortgage rates than many competitors. However, its 15-state footprint makes it an option for only a small segment of borrowers. TD Bank is a regional bank and lender offering a wide range of mortgage products. It operates in 15 states and Washington, D.C. Borrowers will find several down payment assistance options at TD Bank, with physical branches (in states where ...

In the latest trading session, Toronto-Dominion Bank (TD) closed at $57.79, marking a +1.16% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.69%. On the other hand, the Dow registered a gain of 1.04%, and the technology-centric Nasdaq increased by 2.43%. The retail and wholesale bank's stock has dropped by 0.21% in the past month, exceeding the Finance sector's loss of 1.73% and the S&P 500's loss of 4.78%. The investment community will be paying close attention to ...