THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter last year:

• Reported diluted earnings per share were $1.46, compared with $1.24.
• Adjusted diluted earnings per share were $1.51, compared with $1.27.
• Reported net income was $2,769 million, compared with $2,358 million.
• Adjusted net income was $2,865 million, compared with $2,416 million.

YEAR-TO-DATE FINANCIAL HIGHLIGHTS, nine months ended July 31, 2017, compared with the corresponding period last year:

• Reported diluted earnings per share were $4.08, compared with $3.47.
• Adjusted diluted earnings per share were $4.18, compared with $3.64.
• Reported net income was $7,805 million, compared with $6,633 million.
• Adjusted net income was $7,984 million, compared with $6,945 million.

THIRD QUARTER ADJUSTMENTS (ITEMS OF NOTE)

The third quarter reported earnings figures included the following items of note:

• Amortization of intangibles of $74 million ($56 million after tax or 3 cents per share), compared with $79 million ($58 million after tax or 3 cents per share) in the third quarter last year.
•  Loss on sale of the Direct Investing business in Europe of $42 million ($40 million after tax or 2 cents per share).

 

TD Bank Group announced its financial results for the third quarter ended July 31, 2017. Third quarter reported earnings were $2.8 billion, up 17% compared with the same quarter last year. "This was a great quarter for TD reflecting impressive earnings and revenue growth, better credit performance across all our businesses, and lower insurance claims," said Bharat Masrani, Group President and Chief Executive Officer. The Bank also announced its intention to amend its normal course issuer bid to repurchase for cancellation up to an additional 20 million of its common shares, subject to regulatory approval.

 

Canadian Retail

Canadian Retail net income was $1,725 million, an increase of 14% from the third quarter last year, reflecting good revenue growth and lower insurance claims. The Canadian Retail businesses continued to harness the power of One TD, delivering increased volumes, including record real estate lending originations, and growth in wealth assets.

 

U.S. Retail

U.S. Retail net income was $901 million (US$678 million) this quarter compared with $788 million (US$609 million) for the third quarter last year, an increase of 14% (11% in U.S. dollars). The U.S. Retail Bank, which excludes the Bank's investment in TD Ameritrade, generated net income of $783 million (US$590 million), an increase of 18% (15% in U.S. dollars) compared with the third quarter last year. On a year-to-date basis, the U.S. Retail Bank has delivered 10% revenue growth (US$504 million), compared with the same period last year, highlighting our ability to provide legendary experiences and attract new customers. Earnings growth reflected strong operating leverage, a more favourable interest rate environment, and continued good credit performance. TD Ameritrade contributed $118 million (US$88 million) in earnings to the segment, a decrease of $7 million, or 6% (a decrease of $9 million, or 9% in U.S. dollars) compared with the third quarter last year.

 

Wholesale Banking

Wholesale Banking net income was $293 million reflecting revenue growth from corporate lending and trading. Continued investment into growing the U.S. dollar businesses, including in client-facing employees and TD Prime Services, our new prime brokerage business, contributed to increased expenses this quarter.

 

Capital

TD's Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis was 11.0%, compared to 10.8% last quarter.

 

Conclusion

"Our unwavering focus is on helping our customers feel confident about their financial future and ready for everything that life brings their way," said Masrani. "TD's performance this quarter demonstrates the strength of our businesses in Canada and the U.S. The world around us is changing at a rapid pace and we continue to innovate and simplify how we do business."