Shares of The Toronto-Dominion Bank (NYSE:TD) (TSE:TD) are ticking marginally higher today after its second-quarter revenue increased by 9.9% year-over-year to C$13.82 billion. Its EPS of C$2.04 came in better than last year’s mark of C$1.91.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Canada Operations Deliver
The quarter was marked by positive momentum in TD’s business franchise. Its Canadian Personal and Commercial Banking net income rose by 7% to C$1.74 billion, driven by volume growth and positive operating leverage.
But U.S. Operations Disappoint
On the other hand, net income in TD’s U.S. retail operations declined by 59% to C$580 million. Excluding contributions from its investment in Charles Schwab, net income from TD’s U.S. retail bank plunged by 66% owing to provisions for regulatory investigations. The bank is facing probes for non-compliance with anti-money laundering norms.
Wealth Management Saves the Day
Its Wealth Management and Insurance unit, however, fared better with a 19% jump in its net income. These gains were driven by insurance premium growth and an increase in fee-based and transaction revenue. Notably, TD’s Wholesale Banking division clocked an impressive 107% jump in net income owing to higher revenue from trading activities and underwriting fees.
Separately, TD Bank has declared a dividend of C$1.02 per share. The TD dividend is payable on or after July 31 to investors of record on July 10.
Is TD a Buy, Sell, or a Hold?
TD Bank’s share price has declined by nearly 6.5% over the past six months amid its regulatory woes. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average TD price target of $63.85. However, analysts’ views on the stock could see a revision following today’s earnings report.
Read full Disclosure