TD Bank profit falls, but bank hikes dividend

Thu Aug 28, 2008 9:51am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Lynne Olver

TORONTO (Reuters) - Toronto-Dominion Bank (TD.TO: Quote) said third-quarter net income fell 10 percent as a difficult capital markets environment slashed wholesale banking profit.

Although earnings were slightly below market expectations, TD was the only Canadian bank to boost its dividend this quarter and its shares rose 2 percent in early trading.

TD, Canada's second-largest bank, said it earned C$997 million ($949 million), or C$1.21 per share, in the three months ended July 31. That was down from C$1.1 billion, or C$1.51 a share, a year earlier.

It raised its quarterly dividend to 61 Canadian cents a share from 59 Canadian cents.

The bank had previously announced a charge of C$96 million in its TD Securities unit because of improperly priced derivatives in its London office, which reduced earnings per share by 8 Canadian cents.

"This was a tough quarter for our wholesale bank," Chief Executive Ed Clark said in a statement, calling the mispricing "particularly disappointing" and saying the bank was doing a thorough review of its risk management practices.

Adjusted for items including amortization of intangibles and restructuring charges, the bank earned C$1.35 per share. This would have been C$1.43 without the derivatives charge.

Analysts had expected profit of C$1.45 per share before items, according to Reuters Estimates.   Continued...