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TD Bank Group Reports First Quarter 2016 Results
by pmnationtalk onFebruary 25, 20161034 Views
Feb 25, 2016
TD Bank Group Reports First Quarter 2016 Results
This quarterly earnings news release should be read in conjunction with the Bank’s unaudited First Quarter 2016 Report to Shareholders for the three months ended January 31, 2016, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on our website at http://www.td.com/investor/. This analysis is dated February 24, 2016. Unless otherwise indicated, all amounts are expressed in Canadian dollars, and have been primarily derived from the Bank’s Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been reclassified to conform to the presentation adopted in the current period. Additional information relating to the Bank is available on the Bank’s website at http://www.td.com, as well as on SEDAR at http://www.sedar.com and on the U.S. Securities and Exchange Commission’s (SEC) website at http://www.sec.gov (EDGAR filers section).
Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted measures are non-GAAP measures. Refer to the “How the Bank Reports” section of the First Quarter 2016 Management’s Discussion and Analysis (MD&A) for an explanation of reported and adjusted results.
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter a year ago:
Reported diluted earnings per share were $1.17, compared with $1.09.
Adjusted diluted earnings per share were $1.18, compared with $1.12.
Reported net income was $2,223 million, compared with $2,060 million.
Adjusted net income was $2,247 million, compared with $2,123 million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first quarter reported earnings figures included the following items of note:
Amortization of intangibles of $65 million after tax (3 cents per share), compared with $63 million after tax (3 cents per share) in the first quarter a year ago.
A gain of $41 million after tax (2 cents per share) due to the change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio.
TORONTO, Feb. 25, 2016 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ending January 31, 2016, which reflect growth in retail earnings.
“We are pleased to report adjusted earnings of $2.2 billion, up 6% from the first quarter last year,” said Bharat Masrani, Group President and Chief Executive Officer. “Our performance reflects organic growth, favourable currency translation and expense management.” The Bank also announced a dividend increase of 4 cents per common share for the dividend payable in April.
Canadian Retail net income was $1.5 billion, an increase of 4% over the first quarter last year. Higher earnings reflect loan, deposit and wealth asset volume growth and higher fee-based revenue, partially offset by lower margins, higher provision for credit losses, and a higher effective tax rate.
U.S. Retail net income was $751 million (US$552 million) in the first quarter. The U.S. Retail Bank, which excludes the Bank’s investment in TD Ameritrade, generated net income of $642 million (US$470 million), an increase of 20% (3% in U.S. dollars) compared with the first quarter last year. Earnings reflect volume growth and expense management initiatives, partially offset by higher provision for credit losses and lower margins.
TD Ameritrade contributed $109 million (US$82 million) in earnings to the segment, an increase of 21% (4% in U.S. dollars) compared with the first quarter last year.
Wholesale Banking net income was $161 million, a decrease of 16% compared with the first quarter last year, reflecting a more challenging equity trading environment and lower security gains.
TD’s Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis was 9.9%, the same as last quarter.
“Our first quarter results demonstrate the ability of our diversified business model to perform in a challenging environment,” said Masrani. “Looking ahead, we remain focused on driving organic growth, improving our productivity, adapting and innovating with new initiatives and investments, and helping our customers achieve their goals.”
The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 2.
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