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Bullboard - Stock Discussion Forum Toronto-Dominion Bank T.TD

Alternate Symbol(s):  TD | TDBCP | T.TD.PF.A | TDOPF | T.TD.PF.C | TDBKF | T.TD.PF.D | TDOMF | T.TD.PF.E | T.TD.PF.I | T.TD.PF.J

The Toronto-Dominion Bank (the Bank) operates as a bank in North America. The Bank's segments include Canadian Personal and Commercial Banking, which provides financial products and services to personal, small business and commercial customers, and includes TD Auto Finance Canada; U.S. Retail segment, which is comprised of personal and business banking in the United States, operating under the... see more

TSX:TD - Post Discussion

Toronto-Dominion Bank > Quarter earnings
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Post by bartno12001 on Dec 05, 2024 7:23am

Quarter earnings

TD Bank Group Reports Fourth Quarter and Fiscal 2024 Results

Canada NewsWire

TORONTO, Dec. 5, 2024

Earnings News Release -- Three and twelve months ended October 31, 2024

FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year:
 -- Reported diluted earnings per share were $1.97, compared with $1.48. -- Adjusted diluted earnings per share were $1.72, compared with $1.82. -- Reported net income was $3,635 million, compared with $2,866 million. -- Adjusted net income was $3,205 million, compared with $3,485 million. 

FULL YEAR FINANCIAL HIGHLIGHTS, compared with last year:
 -- Reported diluted earnings per share were $4.72, compared with $5.52. -- Adjusted diluted earnings per share were $7.81, compared with $7.91. -- Reported net income was $8,842 million, compared with $10,634 million. -- Adjusted net income was $14,277 million, compared with $14,995 million. 

FOURTH QUARTER ADJUSTMENTS -- CHARGE (GAIN) FOR ITEMS OF NOTE:

The fourth quarter reported earnings figures included the following items of note:
 -- Amortization of acquired intangibles of $60 million ($52 million after-tax or 3 cents per share), compared with $92 million ($83 million after-tax or 4 cents per share) in the fourth quarter last year. -- Acquisition and integration charges related to the Schwab transaction of $35 million ($26 million after-tax or 2 cents per share), compared with $31 million ($26 million after-tax or 1 cent per share) in the fourth quarter last year. -- Acquisition and integration charges related to the Cowen acquisition of $82 million ($64 million after-tax or 4 cents per share), compared with $197 million ($161 million after-tax or 9 cents per share) in the fourth quarter last year. -- Impact from the terminated First Horizon (FHN) acquisition-related capital hedging strategy of $59 million ($45 million after-tax or 2 cents per share), compared with $64 million ($48 million after-tax or 3 cents per share) in the fourth quarter last year. -- Gain on sale of Schwab shares of ($1,022) million (($1,022) million after-tax or (59) cents per share). -- U.S. balance sheet restructuring of $311 million ($234 million after-tax or 13 cents per share). -- Indirect tax matters of $226 million ($173 million after-tax or 10 cents per share). -- Federal Deposit Insurance Corporation (FDIC) special assessment of ($72) million (($54) million after-tax or (3) cents per share). -- Global resolution of the investigations into the Bank's U.S. BSA/AML program of $52 million ($52 million after-tax or 3 cents per share). 

TORONTO, Dec. 5, 2024 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the fourth quarter ended October 31, 2024. Reported earnings were $3.6 billion, up 26.8% compared with the fourth quarter last year, and adjusted earnings were $3.2 billion, down 8.0%.

"Despite a challenging quarter, we are pleased with the Bank's underlying fundamentals, which were reflected in our revenue growth. This quarter, we delivered higher fee income in our markets-related businesses, volume growth in Canada, and stable deposits in the U.S.," said Bharat Masrani, Group President and CEO, TD Bank Group. "A key development this quarter was the resolution of our U.S. AML matters, bringing important clarity to our stakeholders. Remediation is our number one priority, and we continue to make meaningful progress in addressing the failures."

Canadian Personal and Commercial Banking delivered a strong quarter with record revenue and continued positive operating leverage

Canadian Personal and Commercial Banking net income was $1,823 million, an increase of 9% compared to the fourth quarter last year, reflecting higher revenue, partially offset by higher non-interest expenses and provisions for credit losses. Revenue was a record $5,064 million, an increase of 7%, primarily reflecting loan and deposit volume growth and margin expansion on deposits.

This quarter, Canadian Personal and Commercial Banking enhanced its credit card loyalty programs, teaming up with the Vancouver Canucks to offer exclusive perks at home games for eligible TD credit cardholders. Canadian Business Banking continued to drive innovation with the launch of TD eCommerce Solutions, a full-service e-commerce platform for businesses to sell online and take payments, and through a collaboration with TouchBistro to provide a streamlined payment and operations management platform for restaurant owners.

The U.S. Retail Bank delivered loan growth and stable deposits in a challenging quarter

U.S. Retail reported net income for the quarter was $863 million (US$634 million), down 32% (32% in U.S. dollars) compared with the fourth quarter last year. On an adjusted basis, net income was $1,095 million (US$803 million), down 14% (14% in U.S. dollars). Reported net income for the quarter from the Bank's investment in The Charles Schwab Corporation ("Schwab") was $154 million (US$114 million), down 22% (22% in U.S. dollars).

U.S. Retail Bank, which excludes the Bank's investment in Schwab, reported net income was $709 million (US$520 million), down 34% (34% in U.S. dollars) compared with the fourth quarter last year, reflecting higher PCL, higher non-interest expenses, and lower revenue. On an adjusted basis, net income was $941 million (US$689 million), down 12% (13% in U.S. dollars), reflecting higher PCL and higher non-interest expenses.

This quarter, the U.S Retail Bank announced an extension to its credit card program agreement with Nordstrom to continue as the exclusive issuer of Nordstrom's Visa and private label consumer credit cards through 2032. TD Bank, America's Most Convenient Bank(R) (TD AMCB), ranked #1 for the eighth consecutive year in total number of approved U.S. Small Business Administration (SBA) loans in its Maine to Florida footprint and #2 in SBA loans nationally. In addition, TD AMCB earned the 2024 Great Places to Work Certification(TM) for the ninth year in a row.

Wealth Management and Insurance delivered strong underlying performance offset by impact of severe weather events

Wealth Management and Insurance net income was $349 million, down 29% compared with the fourth quarter last year. Revenue for the quarter was $3,937 million, an increase of $981 million, or 33%. Of the increase, $718 million, or 27%, was driven by reinsurance recoveries with the remainder reflecting higher insurance premiums, asset growth, increased transaction revenue and higher deposit margins. TD Insurance reported higher claims costs due to a significant hailstorm in Calgary and severe weather events in Quebec, in addition to increased claims severity.

This quarter, Wealth Management and Insurance continued its focus on client-centric innovation. TD Direct Investing launched TD Active Trader Live, a new weekly streaming program designed to enhance clients' trading experience with in-depth analysis, insights and strategies. TD Asset Management grew its ETF business, leading the Big 5 banks in market share growth this fiscal year[1]. TD Insurance continued its digital transformation, with over 40% of eligible customers now purchasing their insurance online. Additionally, TD Insurance provided support and advice to customers and communities impacted by severe weather events this quarter.

Wholesale Banking continued to demonstrate increased earnings power from combined TD Securities and TD Cowen capabilities

Wholesale Banking reported net income for the quarter was $235 million, an increase of $218 million compared with the fourth quarter last year, primarily reflecting higher revenue and lower non-interest expenses, partially offset by higher income taxes and PCL. On an adjusted basis, net income was $299 million, an increase of $121 million, or 68%. Revenue for the quarter was $1,771 million, an increase of $283 million, or 19%, compared with the fourth quarter last year, reflecting higher lending revenue, underwriting fees and trading-related revenue.

This quarter, TD Securities was joint lead on the Bank's secondary sale of Schwab shares in a US$2.5 billion block trade, one of the ten largest U.S. block trades since 2010. TD Cowen was recognized for its industry-leading research capabilities in the 2024 Extel Research Surveys, including #1 in Telecom & Media and third place overall in Canada. In the U.S. survey, TD Cowen's Washington Research team ranked #1. In addition, TD Securities was recognized in four categories at the Euromoney FX Awards, including Canada's Best FX Bank.

Capital

TD's Common Equity Tier 1 Capital ratio was 13.1%.

Looking Forward

For fiscal 2025, it will be challenging for the Bank to generate earnings growth as it navigates a transition year, advances AML remediation with investments in its risk and control infrastructure, and continues to invest in its businesses.

The Bank is currently undertaking a strategic review of organic opportunities and priorities, productivity and efficiency initiatives, and capital allocation alternatives. As a result, TD is suspending the following medium-term financial targets: 7-10% adjusted EPS growth, 16%+ return on equity and positive operating leverage. The Bank expects to update its medium-term financial targets in the second half of 2025.

"TD faced challenges in 2024, but we have a strong Bank, with well-positioned businesses serving millions of customers. Our AML remediation is our top priority, and we remain focused on strengthening our risk and controls to meet our obligations," said Raymond Chun, Chief Operating Officer, TD Bank Group. "I'm confident that in the year ahead, we will refresh our strategy, drive change, and enhance efficient execution to deliver for our shareholders and all stakeholders."
Comment by bartno12001 on Dec 05, 2024 7:26am
Very bad quarter. Huge misses. Suspend all goals (everything) for 2025. Easy 70 and below in 2025. Maybe even 5% drop today  Reported diluted earnings per share were $1.97, compared with $1.48. -- Adjusted diluted earnings per share were $1.72, compared with $1.82. -- Reported net income was $3,635 million, compared with $2,866 million. -- Adjusted net income was $3,205 million, compared ...more  
Comment by bartno12001 on Dec 05, 2024 7:28am
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year: Reported diluted earnings per share were $1.97, compared with $1.48. Adjusted diluted earnings per share were $1.72, compared with $1.82. Reported net income was $3,635 million, compared with $2,866 million. Adjusted net income was $3,205 million, compared with $3,485 million.
Comment by bartno12001 on Dec 05, 2024 7:43am
Let's try copy paste again FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year: Reported diluted earnings per share were $1.97, compared with $1.48. Adjusted diluted earnings per share were $1.72, compared with $1.82. Reported net income was $3,635 million, compared with $2,866 million. Adjusted net income was  ...more  
Comment by nedstar71 on Dec 05, 2024 7:47am
Ladies and gentlemen...."bartno" ......slow claps all around ;-)
Comment by bartno12001 on Dec 05, 2024 7:55am
Hey I covered all the banks. Not just td. I like doing this.  If td opens higher than 76 I am selling my 100 shares and moving on. If it opens lower than 76 I will hold and will wait to buy in low 70s - (70 to 72). But td is pretty much univestable for 2025 I will look at buying other banks stocks like cibc, bns. If bmo comes down to low 120s I will be interested. Ry stock price is too rich ...more  
Comment by rixpix on Dec 05, 2024 8:13am
Buy BK  or FTN. Both on the TSX. Or something safer would be FTN.PR.A ,  Pays over 8.5% dividend.  GL
Comment by bartno12001 on Dec 05, 2024 8:59am
Naa. I stick to major companies It's looking like td will be opening higher than 76. I will take my 300 loss and move on All the best people. See you late 2025
Comment by flamingogold on Dec 05, 2024 11:10am
I second that. I own TD but not directly but through FTN, BK and FFN prefs. Solid montly distributions that beat TD. This certainly could bounce again but we might see some tax loss selling first.
Comment by Torontojay on Dec 05, 2024 2:22pm
It must be Canada's booming economy right Flamingo? 
Comment by flamingogold on Dec 05, 2024 3:39pm
If this is recession, it's been a very prosperous one for me compared to others. The market agrees too and why we've notched record after record highs.   Since the financial crises, the wealth gap has been widening and that just widened even more post covid as those holding debt are paying dearly now. What side of the fence one is on determines whether they are in a personal ...more  
Comment by maplak on Dec 05, 2024 4:15pm
Nicely said Flamingogold. There is two kinds of debts  good and bad. When market was whacked during the pandemic I took a line of credit to buy beaten up stocks since the most of my cash was locked  in GIC's. After maturity I have started flipping my stocks to my money  returning line of credit . Back then time = money. 
Comment by flamingogold on Dec 05, 2024 4:32pm
Post financial crises I employed the carry-trade. Money was free. I borrowed from my HELOC to buy double digit yielding DGS and just paid off the interest keeping the difference earned. Did that for almost a decade then paid back the HELOC.   There is a time to take on debt and a time to unload. When rates went into the ditch again during covid the worst thing to do was gorge on mortgage ...more  
Comment by Red_Deer on Dec 05, 2024 11:00pm
Hey MapLak__INSTEAD of a LINE of CREDIT__WHY Did You NOT Simply USE a MARGIN Account__Getting ACCESS to As Much As 70% of Your Account EQUITY
Comment by maplak on Dec 06, 2024 8:30am
I couldn't use margin account. Remember I did have any money in those accounts. They were empty for years . I gave up on investing after 2012. The most of my money and wife money were in GIS's accounts. As a matter fact to my surprise when I restarted trading I learned that I have closed my cash account so only accounts left opened were 2 TFSA , SPDRSP and my wife's cash account. Well ...more  
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