Toronto-Dominion Bank beat estimates after setting aside less money than expected for souring loans in the second quarter, despite concerns that U.S. tariffs would hamper economic growth.
Canada's second-largest lender earned C$1.97 per share on an adjusted basis for the three months ended April 30, topping the C$1.78 average analyst estimate according to Bloomberg. Provisions for credit losses totaled C$1.34 billion ($966 billion) for the period, less than the C$1.41 billion analysts had forecast.
Toronto-Dominion is the first of the largest Canadian banks to report earnings since U.S. tariffs on a range of Canadian imports kicked in, raising the specter of slowing growth and job losses. That's focused attention on the credit quality of businesses and consumers — and on the money lenders are setting aside in case their clients start to default on their debt.
"TD delivered strong results this quarter, with robust trading and fee income in our markets-driven businesses as well as deposit and loan growth in Canadian personal and commercial banking," Chief Executive Officer Raymond Chun said in a statement Thursday.
The bank's wealth-management and insurance division as well as its capital-markets business also saw revenue growth in the quarter, TD said.
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