TD notes 58% profit surge in Q3. A bank stock to buy?

Highlights 

  • The Toronto Dominion Bank joined the big six lenders of Canada to reveal its third quarter earnings report for the fiscal year of 2021 on Thursday, August 26.
  • As it did, TD stocks noted a marginal decline in the premarket hours to trade in the red zone.
  • Apart from its latest financial results, TD Bank also announced the newest addition to its board of directors on Thursday.

The Toronto Dominion Bank joined the big six lenders of Canada to reveal its third quarter earnings report for the fiscal year of 2021 on Thursday, August 26.

As it did, TD stocks noted a marginal decline in the premarket hours to trade in the red zone.

Let’s go through TD Bank’s latest financials.

Also read: BNS stocks rise as Scotiabank posts $2.5B Q3 profit. Time to buy?

Toronto Dominion Bank (TSX:TD) Q3 FY21 earnings

TD posted a 58 per cent year-over-year (YoY) increase in its profit for Q3 FY21, amounting to C$ 3.5 billion.

This surge in TD’s net income was motored by a notable improvement in its provisions for credit losses (PCL), which bettered from that of C$ 377 million in Q3 FY20 to C$ 37 million in the latest quarter.

Its revenue, on the other hand, totaled at C$ 10.7 billion for the third fiscal quarter, soaring from that of C$ 10.2 billion in the same quarter last year.

The lender noted an adjusted diluted earnings per share (EPS) of C$ 1.96 in Q3 FY21, as against that of C$ 1.25 in Q3 FY20, surpassing average analysts’ expectations of C$ 1.92.

Like other top banks in the country, the Toronto Dominion also refrained from increasing its dividends for the fourth quarter of fiscal 2021, leaving it unchanged at C$ 0.79. It currently has a dividend yield of 3.685 per cent.

Copyright ©Kalkine Media 2021

Let us take a look at TD stock’s recent price movement.

Toronto Dominion Bank stock performance

The blue-chip stock closed at C$ 85.75 on Wednesday, August 25, marginally down.

However, TD Bank scrip noted a growth of more than 19 per cent this year, while its one-year return catapulted by nearly 33 per cent.

The financial stock presently holds a one-year high of C$ 89.1 (May 27, 2021), from where it is down by about four per cent.

Also read: BMO Q3 profit soars by 85%, but still no dividend hike! Buy or not?

Bottomline

Apart from its latest financial results, TD Bank also announced the newest addition to its board of directors on Thursday.

Cherie Brant, who has also joined the bank’s risk committee, is associated with the Indigenous law group at Borden Ladner Gervais, where she is also known to be a member of the Environmental, Social and Governance program.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK