Toronto Dominion Bank (NYSE:TD) shares moved higher in U.S. pre-market trading after the lender reported increased adjusted earnings and revenue for its fiscal third quarter, supported by growth across its Canadian, U.S., wealth management and wholesale banking operations.
Adjusted diluted earnings per share rose to C$2.77 from C$2.20 in the same period last year, while adjusted net income increased to C$4.67 billion from C$3.87 billion. Total revenue advanced to C$16.92 billion, compared with C$16.03 billion a year earlier.
TD shares were up 1.4% in U.S. pre-market trading as of 06:49 ET (10:49 GMT).
Credit provisions decline as returns improve
TD Bank also reported an improvement in several measures of profitability and credit performance. Provision for credit losses decreased to C$917 million from C$1 billion in the prior-year period.
Adjusted return on equity increased to 16% from 14.4%, while adjusted return on tangible common equity improved to 19.1% from 17.2%.
“TD had a very strong quarter, with record earnings in our Canadian businesses and Wholesale Banking, and growing momentum in U.S. Banking,” said Raymond Chun, Group President and CEO of TD Bank Group.
“With a focus on disciplined execution, ROE was up significantly and we generated positive operating leverage while continuing to invest in front-line talent, AI and innovation to deepen client relationships and grow the Bank. One year after Investor Day, we are delivering on our commitments, executing our strategy and creating value for our shareholders.”
Canadian and U.S. banking operations expand
Canadian Personal and Commercial Banking generated net income of C$2.10 billion, representing an increase of 7% from a year earlier. Revenue grew 5% to C$5.52 billion, supported by higher deposit and loan volumes as well as improved margins.
The division also benefited from higher pre-tax, pre-provision earnings during the quarter.
Adjusted net income from U.S. Banking increased 12% year over year to C$1.07 billion, equivalent to US$771 million. Return on equity for the business climbed to 10.2%, reflecting further improvement in the performance of TD’s U.S. operations.
Wealth and Wholesale Banking post strong growth
Wealth Management and Insurance delivered net income of C$841 million, up 20% from the corresponding period last year. Growth was supported by record asset levels, increased insurance premiums and higher deposit volumes.
Wholesale Banking recorded an even stronger increase, with adjusted net income jumping 76% to C$743 million. The improvement reflected higher revenue and lower provisions for credit losses, partially offset by increased non-interest expenses.
The third-quarter figures showed broad-based earnings growth across TD Bank’s major businesses, alongside stronger returns and lower credit provisions. Continued investment in AI, innovation and client-facing operations remains part of the bank’s strategy as it works to build on momentum across its Canadian and U.S. businesses.