Balance-sheet growth in U.S. provides spark to TD Bank
TD Bank Group’s second-quarter profit received a boost from its U.S. operations and a lower loan-loss provision.
The $932 billion-asset company’s earnings rose 22% from a year earlier to $1.9 billion, or 98 cents a share.
"We continue to execute against our strategy and I am very pleased with our earnings growth and the performance of our retail and wholesale franchises," Bharat Masrani, the company’s president and CEO, said in a press release Thursday.
“We remain focused on investing for future growth and seamlessly delivering personalized experiences, proactive advice and timely interactions to our customers and clients across multiple channels,” he added.
Net income from TD’s U.S. retail business rose 18% to $636 million; profit at its retail bank rose 21% to $554 million. TD Ameritrade’s income increased by 5% to $82 million.
TD said growth at its U.S. retail bank was a function of balance-sheet growth. Deposits rose by 9%, reflecting a 6% increase in business deposits and 9% growth in personal deposits.
Average loan volumes in the U.S. retail business increased by 6%, with 3% growth in personal loans and a 9% rise in business loans. The loan-loss provision for the company’s U.S. division fell by 7%.
Noninterest expenses rose by 2% to $1.1 million, driven by higher employee costs.