TD Bank swings to quarterly loss on $2.6 billion provision tied to US probe
2024.08.22 06:34
(Reuters) -TD Bank swung to a quarterly loss on Thursday as the second-largest Canadian lender set aside C$3.57 billion ($2.63 billion) for fines related to U.S. regulatory probes into its anti-money laundering (AML) program.
The bank’s U.S. regulatory probes have been a major overhang on TD’s stock over the last year, with investors concerned about the resolution timeline and potential cost.
TD said on Wednesday it expects a global resolution to the AML probes by year-end, which will include monetary and non-monetary penalties.
Analysts have cautioned that TD could face restrictions on its future growth in the U.S. as a fallout of the probe, given the possibility of non-monetary penalties such as an asset cap.
The net loss was C$181 million, or 14 Canadian cents per share, in the three months ended July 31, compared with a profit of C$2.88 billion, or C$1.53 per share, a year earlier.
TD kicks off the earnings season for Canadian banks with others slated to report their results next week.
($1 = 1.3579 Canadian dollars)
