Toronto-Dominion Bank posted a first-quarter profit of almost $1.5 billion bolstered by record retail earnings, and while results came in just shy of year-earlier levels, the bank said its businesses exceeded its expectations during the period.
Toronto-based TD, Canada's second-biggest lender by assets, also boosted its quarterly dividend - for the third time in a year - to 72 Canadian cents a share, a 6% hike.
TD earned C$1.48 billion, or U.S. $1.48 billion, or C$1.55 a share in its fiscal first quarter, down from C$1.56 billion or C$1.67 a year earlier.
Adjusted earnings, which exclude items, improved to C$1.76 billion or C$1.86 a share from C$1.62 billion or C$1.73 a share.
Adjusted results handily beat the Thomson Reuters mean estimate of C$1.76 a share.
TD is the second big Canadian bank Thursday to beat expectations and bolster its dividend, following results earlier from bigger peer Royal Bank of Canada.
TD's loan-loss provisions fell to C$404 million from C$421 million. Reported return on equity was 14.0% versus 17.1%.
In its latest quarter, TD said its Canadian retail and commercial bank earned a record C$826 million, helped by volume growth in commercial lending and in personal deposits and loans, while its U.S. personal and commercial bank division earned US$165 million. Wholesale banking profits fell 17% to C$194 million.
TD had posted a record profit in the fourth quarter on strong peformances from all of its businesses, also handily beating analyst expectations.
