UPDATE 3-TD quarterly earnings climb on retail, capital markets

Thu Dec 3, 2015 10:18am EST
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By John Tilak

TORONTO Dec 3 (Reuters) - Toronto Dominion Bank reported a higher quarterly profit on Thursday, with growth in its domestic retail and capital markets divisions offsetting concerns about the impact of depressed oil prices.

TD, Canada's biggest lender by assets, also took a restructuring charge of C$349 million ($261.72 million) in the fourth quarter ended on Oct. 31 for cost cuts. Reuters had reported in October that the bank was laying off staff in Canada and the United States following a companywide review.

Profit rose 15 percent at the bank's Canadian retail division and 23 percent at its wholesale banking unit.

Despite investors' worries about the impact of a weak economy and the oil price slide on the five biggest Canadian banks, they all managed to beat market expectations for the fourth quarter.

TD recorded C$99 million in impaired loans for the oil and gas sector in the quarter, up from C$35 million in the third quarter. As an allowance for credit losses in the energy industry, the bank set aside C$25 million, compared with C$6 million in the third quarter.

TD has the smallest oil and gas exposure of the major Canadian banks; the energy sector forms less than 1 percent of its total loan portfolio.

The bank has not observed any surprises or causes for alarm in the energy sector, Chief Financial Officer Colleen Johnston said.   Continued...