Toronto-Dominion Bank, Canada's second-largest bank by assets, had a record fourth-quarter profit on strong performances from all of its businesses, handily beating analyst expectations.
The bank's fiscal fourth-quarter net income rose to a record C$1.57 billion (US$1.54 billion), or C$1.69 a share, in its final quarter of fiscal 2011 from C$994 million, or C$1.07 a share, a year earlier, the Toronto-based lender said in a statement. Adjusted for gains and losses, earnings were C$1.77 a share, up from C$1.38 a year ago.
Analysts were expecting C$1.53 a share, according to Thomson Reuters.
Canadian Imperial Bank of Commerce, the country's fifth-largest lender, kicked open the fourth-quarter earnings season earlier Thursday, also posting stronger-than-expected results. Analysts were projecting strong year-over-year earnings from Canada's six big banks this quarter, but below third-quarter levels due to tighter margins, lower fixed-income trading revenue and weak underwriting and advisory activity.
But, TD's fourth-quarter results even surpassed what had been a strong third quarter. In the third quarter, TD earned a better-than-expected C$1.58 a share on revenue of C$5.35 billion and boosted its dividend for the second time this fiscal year.
TD's fourth-quarter revenue rose 13% to C$5.67 billion.
Loan-loss provisions fell to C$334 million from C$404 million.
TD's Canadian retail and commercial bank earned C$905 million, up 17%, on higher real estate secured lending, auto lending, business loans, deposits and insurance.
TD, which has more branches in the U.S. than Canada, said its U.S. personal and commercial bank earned an adjusted profit of US$325 million, up 18% from last year on organic loan and deposit growth and acquisitions.
Profits from wholesale banking jumped 203% to C$288 million.
TD and CIBC lead off reporting season for Canadian banks Thursday, with results from Bank of Nova Scotia and Royal Bank of Canada due out Friday. Bank of Montreal and National Bank of Canada will report next week.