TD Bank Financial Group today reported very strong overall financial performance in the third quarter ended July 31, driven by broad-based contributions from across the bank’s businesses.
TD said third-quarter profit rose to $1.1 billion from a year-earlier $796 million. Diluted earnings per share rose to $1.51 from $1.09.
“TD’s third quarter demonstrated another excellent earnings performance,” said Ed Clark, president and CEO, in a release. “Our strategy to constantly invest in and leverage our powerful Canadian businesses while enhancing the organic growth potential of our U.S. platform continues to deliver for our shareholders,” Clark added.
Canadian personal and commercial banking delivered record revenue, efficiency and net income in the quarter. Earnings were up 14% compared with the same quarter last year. TD Canada Trust saw continued strength in real-estate secured lending, core banking, small business banking and life insurance.
Wealth management, including the bank’s equity share of TD Ameritrade, delivered a very strong quarter with a 22% increase in earnings compared with the third quarter of last year. In Canada, the quarter saw continued earnings momentum from TD Mutual Funds and the advice-based businesses, driven by increased volumes and sales, as well as strong results in discount brokerage. The third quarter also saw growth in client assets and continued progress on adding to wealth management’s Canadian network of advisors.
TD Ameritrade contributed $59 million in net income to the bank’s wealth management segment. TD Ameritrade’s operating highlights from the quarter included record client assets under management and strong levels of both new account openings and client trades per day.
U.S. personal and commercial banking segment produced a solid quarter with a 60% increase in earnings over the same period last year, reflecting the successful privatization of TD Banknorth in April 2007. TD Banknorth saw growth in deposits while maintaining solid asset quality and expense control.
Wholesale banking delivered quarterly earnings up 41% year over year to $253 million. A robust performance in trading and in the domestic franchise businesses, predominantly in investment banking, was complemented by a strong contribution from the equity investment portfolio.
The bank also announced an increase to the quarterly dividend of 4¢ to 57¢, an increase of 8%.