Toronto-Dominion Bank Profits Dip, Expects FY23 EPS Growth Below Medium-Term Range - Toronto-Dominion Bank (NYSE:TD)

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The Toronto-Dominion Bank (NYSE:TD) reported a Q2 FY23 adjusted net income increase of 1% Y/Y to C$3.8 billion.
Adjusted EPS was C$1.94, down from C$2.02 a year ago.
Canadian Personal & Commercial Banking earnings totaled C$1.63 billion (+4% Y/Y) and Wealth Management & Insurance was C$563 million (-16% Y/Y).
U.S. Retail earnings were up 3% Y/Y to C$1.41 billion, with U.S. Retail Bank earnings of C$1.16 billion (+2% Y/Y). Wholesale Banking net income was C$150 million (-58% Y/Y).
Provision for credit losses rose to C$599 million from C$27 million a year ago.
Adjusted revenue rose to C$12.5 billion from C$11.0 billion a year ago.
CET1 stood at 15.3% vs. 14.7% a year ago, and the adjusted return on common equity (ROE) was 14.1% vs 15.9% the prior year.
The leverage ratio was 4.6% vs 4.3% a year ago.
In Q2, the bank closed the acquisition of Cowen Inc for C$1.5 billion in cash, C$253 million for the settlement of Cowen's Series A Preferred Stock, and C$205 million to replace share-based payment awards.
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Outlook: For FY 2023, TD doesn't expect to meet its medium-term adjusted EPS growth target range of 7%-10% due to the challenging macroenvironment and mutual termination of the merger deal with First Horizon Corp (NYSE:FHN).
"TD's retail businesses in both Canada and the United States continued to show strong revenue and earnings growth this quarter, with robust customer originations and loan volumes. Investments in differentiated wealth and insurance products and the close of the Cowen acquisition expanded our offerings and strengthened the competitive advantages of these businesses," said Bharat Masrani, Group President and CEO.
Dividend: The bank announced a dividend per share of C$0.96, payable on and after July 31, 2023, to shareholders of record as on July 10, 2023.
Repurchase: Today, TD announced a normal course issuer bid to repurchase for the cancellation of up to 30 million common shares, representing approximately 1.6% of issued and outstanding shares.
Price Action: TD shares are trading lower by 3.56% at $57.56 on the last check Thursday.

TDThe Toronto-Dominion Bank

$96.040.46%

Overview

FHNFirst Horizon Corp

$25.031.01%

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The Toronto-Dominion Bank (NYSE:TD) reported a Q2 FY23 adjusted net income increase of 1% Y/Y to C$3.8 billion.
Adjusted EPS was C$1.94, down from C$2.02 a year ago.
Canadian Personal & Commercial Banking earnings totaled C$1.63 billion (+4% Y/Y) and Wealth Management & Insurance was C$563 million (-16% Y/Y).
U.S. Retail earnings were up 3% Y/Y to C$1.41 billion, with U.S. Retail Bank earnings of C$1.16 billion (+2% Y/Y). Wholesale Banking net income was C$150 million (-58% Y/Y).
Provision for credit losses rose to C$599 million from C$27 million a year ago.
Adjusted revenue rose to C$12.5 billion from C$11.0 billion a year ago.
CET1 stood at 15.3% vs. 14.7% a year ago, and the adjusted return on common equity (ROE) was 14.1% vs 15.9% the prior year.
The leverage ratio was 4.6% vs 4.3% a year ago.
In Q2, the bank closed the acquisition of Cowen Inc for C$1.5 billion in cash, C$253 million for the settlement of Cowen's Series A Preferred Stock, and C$205 million to replace share-based payment awards.
Related: Wall Street Analyst-Led Research Firm Gives Up On Cannabis, Here's Why
Outlook: For FY 2023, TD doesn't expect to meet its medium-term adjusted EPS growth target range of 7%-10% due to the challenging macroenvironment and mutual termination of the merger deal with First Horizon Corp (NYSE:FHN).
"TD's retail businesses in both Canada and the United States continued to show strong revenue and earnings growth this quarter, with robust customer originations and loan volumes. Investments in differentiated wealth and insurance products and the close of the Cowen acquisition expanded our offerings and strengthened the competitive advantages of these businesses," said Bharat Masrani, Group President and CEO.
Dividend: The bank announced a dividend per share of C$0.96, payable on and after July 31, 2023, to shareholders of record as on July 10, 2023.
Repurchase: Today, TD announced a normal course issuer bid to repurchase for the cancellation of up to 30 million common shares, representing approximately 1.6% of issued and outstanding shares.
Price Action: TD shares are trading lower by 3.56% at $57.56 on the last check Thursday.