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Summary
- Toronto-Dominion Bank (TSX:TD) beat profit estimates projected by market analysts to secure a 10 per cent year-over-year (YoY) increase in its net income for the latest fiscal quarter.
- Ahead of its financials announcement on Thursday morning, TD stocks jumped by about two per cent to close at C$ 79.4 on Wednesday.
- TD Bank reported a 14 per cent YoY jump in its Canadian retail banking unit’s net income of C$ 2.03 billion for Q1 FY21.
Canadian lender Toronto-Dominion Bank (TSX:TD) beat profit estimates projected by market analysts to secure a 10 per cent year-over-year (YoY) increase in its net income for the latest fiscal quarter.
The TD Bank’s adjusted net income amounted to C$ 3.4 billion, or C$ 1.83 per share, in the first fiscal quarter ending 31 January 2021, up from C$ 3.1 billion in Q1 FY20. Market analysts, on the other hand, had forecast earnings of C$ 1.49 per share for the latest quarter, as per the data by IBES from EODHD/Others.
Its reported net income for Q1 FY21 stood at C$ 3.3 billion, or C$ 1.77 per share, which was a notable increase from that of C$ 3 billion, or C$ 1.61 per share, in Q1 FY20.
Ahead of its financials announcement on Thursday morning, February 25, the bank stock jumped by about two per cent to close at C$ 79.4 on Wednesday.
©Kalkine Group 2021
While it faced profit erosion in its US retail banking division, TD Bank pointed that its increased earnings were motored by lower provisions for credit losses (PCL) and improved performance in its Canadian retail banking unit.
Toronto-Dominion Bank Q1 FY21 Results – Key Highlights
TD Bank reported a 14 per cent YoY jump in its Canadian retail banking unit’s net income of C$ 2.03 billion for Q1 FY21. The bank noted that its PCL, which had significantly increased amid the initial phase of the coronavirus pandemic, was lower in the latest quarter. Meanwhile, its revenue was also higher by one per cent YoY, indicating an increase in its loan and deposit volumes, among other things.
The Canadian retail unit’s PCL was down by C$ 249 million YoY in this quarter.
Toronto-Dominion’s US retail banking unit posted a 10 per cent YoY decline in its net income of C$ 1 billion for Q1 FY21.
TD’s wholesale banking unit saw a net income of C$ 437 million in Q1 FY21, while its revenue for the three months climbed 25 per cent YoY to total at C$ 1.31 billion.
The Big Six lender also announced a quarterly dividend of C$ 0.79 cents, which will be payable on April 30. It reflects a dividend yield of 3.98 per cent at the moment, as per the data on TMX.
