TD Bank Group’s anti-money-laundering failures led to a loss in the third quarter as
The Toronto-based bank set aside $2.6 billion USD last quarter, while lower deposit volumes and loan margins tamped down on revenue from its American business, the bank said Thursday.
TD reported a loss of $181 million CAD, or 14 Canadian cents a share, compared with a net profit of $2.88 billion CAD, or $1.53 CAD a share, in the year-ago quarter. Analysts polled by S&P had expected earnings per share of $1.95 CAD in the recently ended quarter.
On an adjusted basis, TD posted earnings of $2.05 CAD a share, compared to analyst consensus estimates of $2.08 CAD a share.
“TD delivered record revenue and net income in Canadian personal and commercial banking, continued operating momentum in the U.S., and strong results across our markets-driven businesses,” said President and CEO Bharat Masrani in a prepared statement.
Revenue rose to $14.17 billion CAD from $12.91 billion CAD a year ago. Analysts had expected $12.69 billion CAD.
Net interest income rose about 4% to $7.58 billion CAD.
Non-interest income gained more than 17% to $6.6 billion CAD, boosted by the Wealth Management and Insurance segment, which saw higher insurance premiums, fee-based revenue and transaction revenue.
Operations in the states pulled in revenue of $2.6 billion, a 2% increase from the prior quarter, while Canadian revenue of $5 billion CAD was up 3% from the previous quarter. Across the two countries, TD saw higher fee income lift revenue, tempered by higher expenses and provisions for credit losses.
Provisions for credit losses rose about 40% to $1.07 billion CAD.
In addition to the provisions for the possible AML penalties, the bank incurred $110 million CAD in restructuring charges, mostly related to employee severance and the sale of real estate assets. The company
