TD Bank quarterly profit jumps on higher rates boost
2022.12.01 07:06
© Reuters. FILE PHOTO: A sign for TD Canada Trust in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio
(Reuters) -Canada’s TD Bank posted a surge in fourth-quarter profit on Thursday as gains from higher interest rates boosted its personal and commercial business and helped offset weakness in underwriting and capital markets.
The lender set aside C$617 million in loan loss provisions, compared to a release of C$123 million a year earlier.
TD Bank joined peers Royal Bank of Canada, Bank of Nova Scotia and National Bank of Canada (OTC:) to mark higher funds this year to prepare for potential loan losses as worries of an economic downturn grow.
The bank’s personal and commercial business posted an 11% increase in net income, reflecting higher margins and strong volume growth. U.S. retail jumped 12%.
TD Bank’s results came as a sharp contrast to peers that reported lower quarterly profits for the three months ended Oct as a dearth of deals hurt their capital markets businesses.
Canada’s second-largest lender said net income, excluding one-off items, rose to C$4.07 billion, or C$2.18 per share, from C$3.87 billion, or C$2.09 per share, a year earlier.
Analysts had expected C$2.09 a share, according to Refinitiv data.
Overall net profit was C$6.67 billion, or C$3.62 per share, compared with C$3.78 billion, or C$2.04 per share.
