Is TD Bank (TSX: TD) worth a buy as its profit surges 14% YoY in Q1?

Toronto-Dominion Bank (TSX: TD) began trending on the stock markets as it released its Q1 FY2021 results on Wednesday, March 3, wrapping up the first earnings season of fiscal 2022 for the big six banks in Canada.

After the Bank of Canada rate hike announcement on March 2, Toronto-Dominion Bank hiked its prime interest rate to 2.7 per cent, up by 25 basis points (bps), to be effective from March 3.

Also read: Bank of Canada hikes interest rates to 0.5%

Keeping these rate changes in mind, let us closely look at the TD’s performance.

Toronto-Dominion Bank (TSX: TD) financial performance in Q1 FY2022

TD Bank said that its top line reached C$ 11.28 billion in Q1 FY2022, up from C$ 10.81 billion in the same period of FY2021. Its first-quarter earnings rose by 14 per cent year-over-year (YoY) to C$ 3.73 billion in fiscal 2022.

The bank saw its adjusted earnings grow 13 per cent YoY to C$ 3.83 billion in the latest quarter.

The C$ 185-billion market cap company recorded diluted earnings per share (EPS) of C$ 2.02 in Q1 2022, up from C$ 1.77 a year ago. On the other hand, its adjusted diluted EPS amounted to C$ 2.08 in Q1 2022 compared to C$ 1.83 in the previous-year quarter.

Its Canadian Retail segment earned a net income of C$ 2.25 billion in the latest quarter, 11 per cent up YoY. Its U.S. Retail segment saw a 27 per cent YoY rise in its net income to C$ 1.27 billion in Q1 FY2022.

The Wholesale Banking segment, on the other hand, reported a net income of C$ 434 million in the latest quarter, a one per cent decline over the last year.

TD’s stock performance

Stocks of Toronto-Dominion catapulted by over 29 per cent in the last 12 months.

TD stock closed at C$ 101.49 apiece on Wednesday, with 4.1 million shares switching hands this day.

Bottomline

TD Bank has announced a quarterly dividend of C$ 0.89 apiece to shareholders, scheduled for payment on or after April 30.

The bank recently agreed to buy U.S.-based First Horizon Corporation for an all-in cash consideration of US$ 13.4 billion to enhance its financial footprints in North America.

Also read: WestJet (TSX: ONEX) to acquire Sunwing: Are the airline stocks a buy?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.