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TD Bank Group Reports Third Quarter 2016 Results
by ahnationtalk onAugust 25, 2016764 Views
TD Bank Group Reports Third Quarter 2016 Results
This quarterly earnings news release should be read in conjunction with the Bank’s unaudited Third Quarter 2016 Report to Shareholders for the three and nine months ended July 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 August 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 Third Quarter 2016 Management’s Discussion and Analysis (MD&A) for an explanation of reported and adjusted results.
THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter a year ago:
Reported diluted earnings per share were $1.24, compared with $1.19.
Adjusted diluted earnings per share were $1.27, compared with $1.20.
Reported net income was $2,358 million, compared with $2,266 million.
Adjusted net income was $2,416 million, compared with $2,285 million.
YEAR-TO-DATE FINANCIAL HIGHLIGHTS, nine months ended July 31, 2016, compared with the corresponding period a year ago:
Reported diluted earnings per share were $3.47, compared with $3.25.
Adjusted diluted earnings per share were $3.64, compared with $3.47.
Reported net income was $6,633 million, compared with $6,185 million.
Adjusted net income was $6,945 million, compared with $6,577 million.
THIRD QUARTER ADJUSTMENT (ITEMS OF NOTE)
The third quarter reported earnings figures included the following item of note:
Amortization of intangibles of $58 million after tax (3 cents per share), compared with $62 million after tax (3 cents per share) in the third quarter a year ago.
TORONTO, Aug. 25, 2016 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the third quarter ending July 31, 2016, reflecting growth in retail and wholesale earnings.
“TD’s results demonstrate the strength of our diversified business model, with adjusted earnings of $2.4 billion, up 6% from the third quarter last year,” said Bharat Masrani, Group President and Chief Executive Officer. “Our performance reflects both organic growth and a focus on expense management.”
Canadian Retail net income was $1.5 billion compared with $1.6 billion in the same quarter last year. Revenue grew 3% compared with the third quarter last year and was more than offset by higher insurance claims largely due to the Fort McMurray wildfire, and a higher effective tax rate.
U.S. Retail net income was $788 million (US$609 million) this quarter compared with $674 million (US$543 million) on a reported basis and $650 million (US$524 million) on an adjusted basis in the third quarter last year.
The U.S. Retail Bank, which excludes the Bank’s investment in TD Ameritrade, generated net income of $663 million (US$512 million), an increase of 14% (9% in U.S. dollars) on a reported basis and 19% (14% in U.S. dollars) on an adjusted basis compared with the third quarter last year. Earnings reflect revenue and customer balance growth and a focus on expense management.
TD Ameritrade contributed $125 million (US$97 million) in earnings to the segment, an increase of 36% (31% in U.S. dollars) compared with the third quarter last year reflecting asset growth, higher trading volumes, and a favourable tax liability adjustment, partially offset by higher operating expenses.
Wholesale Banking net income was $302 million, an increase of 26% compared with the third quarter last year, reflecting higher origination activity across debt and equity capital markets, corporate lending growth and trading-related revenue.
Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis was 10.4%, compared with 10.1% last quarter.
“This quarter we were pleased to mark a milestone of 500,000 downloads of our TD MySpend money management app, which helps our customers track their spending and saving,” said Masrani. “We remain focused on going above and beyond for our customers by providing legendary service and convenience while investing for the future to meet their evolving needs.”
The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 2.