The Toronto-Dominion Bank

TD

Equity

ISIN CA8911605092 / Valor 701890

Toronto Stock Exchange (2024-12-24)

CAD 76.22+0.81%

The Toronto-Dominion Bank
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About company

The Toronto-Dominion Bank's business includes TD Asset Management Inc. (TDAM), a North American investment management firm that offers investment solutions to a wide range of clients, including corporations, pension funds, endowments, foundations, and individual investors. TDAM manages assets on behalf of almost 2 million retail investors and provides a diversified suite of investment solutions, such as mutual funds, professionally managed portfolios, and corporate class funds. The asset management businesses at TD collectively manage $423 billion in assets. TDAM operates in Canada, while its affiliate, Epoch Investment Partners, Inc., operates in the United States. Both entities are wholly-owned subsidiaries of The Toronto-Dominion Bank, which is one of the largest banks in the U.S., serving over 10.0 million customers with a full range of banking products and services.

Summarized from source with an LLMView SourceSector: Finance

Fourth Quarter Earnings

The Toronto-Dominion Bank reported its financial results for the fourth quarter of 2024, showing a significant increase in reported earnings. The bank's reported net income was $3,635 million, up from $2,866 million in the same quarter last year. However, adjusted net income saw a decrease, coming in at $3,205 million compared to $3,485 million in the previous year. This reflects a complex financial landscape with both positive and negative adjustments impacting the overall earnings.

Full Year Financial Performance

For the full fiscal year ending October 31, 2024, The Toronto-Dominion Bank experienced a decline in reported net income, which was $8,842 million compared to $10,634 million the previous year. Adjusted net income also decreased slightly to $14,277 million from $14,995 million. The reported diluted earnings per share for the year were $4.72, down from $5.52, while adjusted diluted earnings per share were $7.81, a slight decrease from $7.91 in the prior year.

Canadian Personal and Commercial Banking

The Canadian Personal and Commercial Banking segment of The Toronto-Dominion Bank delivered a strong performance in the fourth quarter of 2024, with net income rising by 9% to $1,823 million. This growth was driven by a record revenue of $5,064 million, reflecting a 7% increase primarily due to loan and deposit volume growth and margin expansion on deposits. The segment also enhanced its credit card loyalty programs and launched new e-commerce solutions for businesses.

U.S. Retail Banking Challenges

The U.S. Retail Bank segment faced challenges in the fourth quarter of 2024, with reported net income decreasing by 32% to $863 million. On an adjusted basis, net income was $1,095 million, down 14%. The decline was attributed to higher provisions for credit losses, increased non-interest expenses, and lower revenue. Despite these challenges, the U.S. Retail Bank extended its credit card program agreement with Nordstrom and maintained its leadership in SBA loans.

Wholesale Banking Growth

The Wholesale Banking segment of The Toronto-Dominion Bank showed strong growth in the fourth quarter of 2024, with reported net income increasing to $235 million, a significant rise from the previous year. On an adjusted basis, net income was $299 million, up 68%. The segment's revenue increased by 19% to $1,771 million, driven by higher lending revenue, underwriting fees, and trading-related revenue. TD Securities and TD Cowen were recognized for their industry-leading capabilities and achievements in various financial markets.

Summarized from source with an LLMView Source

Key figures

-10.5%1Y

-20.9%3Y

3.63%5Y

Performance

18.8%1Y

18.5%3Y

24.2%5Y

Volatility