TD Bank posts firmer profit in line with expectations
By Jeffrey Hodgson
TORONTO (Reuters) - Toronto-Dominion Bank (TD.TO: Quote) TD.N, Canada's second-largest lender, reported a slightly higher profit on Thursday in line with expectations, as gains at its retail division offset weakness in wholesale banking.
TD Bank's net income rose to C$2.06 billion ($1.66 billion), or C$1.09 per share in the first quarter ended Jan. 31, from C$2.04 billion, or C$1.07 per share, a year earlier.
Excluding one time items, the company earned C$1.12 per share, in line with the analyst average estimate, according to Thomson Reuters I/B/E/S.
The lender also raised its quarterly dividend to 51 Canadian cents per share from 47 Canadian cents.
Investor sentiment had soured on Canadian banks heading into the first-quarter results season on concerns about the impact of a sharp price drop in oil prices and the resulting drag on the Canadian economy.
But the weaker energy prices have so far had a limited impact on TD's loan book and results, said Colleen Johnston, TD Bank's chief financial office.
"We're really not seeing any direct effects to this point, but keeping a very close eye on this because needless to say, low oil prices are a negative for Canada overall," she told Reuters.
Net income from the lender's Canadian retail business rose 20 percent to C$1.45 billion, while that from its U.S. retail arm jumped 27 percent to C$625 million. Continued...