Boston, MA 08/29/2014 (wallstreetpr) – Toronto-Dominion Bank (USA) (NYSE:TD) reported the financial result of its third quarter (3Q2014) ended July 31, 2014. The bank announced adjusted earnings of CAD 2.2 billion, an increase of 37% compared to the same period last year.
TD’s CEO Ed Clark said that significant growth in adjusted earnings during the period was due to the strong contribution across all the business segments. It was due to the organic growth in existing businesses, a recent acquisition, favorable credit conditions and additional charges related the insurance business.
Segment performance
A. Canadian Retail
During 3Q2014, Canadian Retail reported net income of CAD 1.4 billion, which contributed 54% increase in the bank’s adjusted earnings versus 3Q2013. The significant increase in segment performance was due to substantial growth in loan and deposits, increase in contribution from the Aeroplan, good credit quality along with solid operating leverage
B. U.S. Retail
U.S. Retail’s net income also increased by 4% to CAD 561 million ($518 million) compared to the same period last year. It includes the net income of CAD 485 million ($449 million) from Ameritrade, which grew by 4% year over year as a result of improved asset quality, organic growth and cost containment measures that partly offset the decreased gain on sale of securities. Ameritrade reported earnings of $69 million, up by 1% compared to 3Q2013.
C. Wholesale Banking
During 3Q2014, the Wholesale Banking segment reported net income of CAD 216 million, up by 46% compared to the same period of 2013. The considerable increase was due to the revenue growth across the core businesses and favorable credit facility. Positive growth offset the higher non-interest expenses.
Financial position
As of July 31, 2014, Toronto-Dominion Bank (USA) (NYSE:TD)’s common equity Tier 1 Capital ratio was 9.3% as per the Basel III. The adjusted efficiency ratio during the period was 52.3%.
Final take
Mr. Clark said the bank will continue drive growth over its core businesses as a result of a strong franchise driven model and focus over the customers. Toronto-Dominion Bank (USA) (NYSE:TD)k believes the trend will continue in the forthcoming years and also anticipates investment to bring future growth.
