TD Bank Q1 Profit Rises 14%, Beats Estimates

Toronto-Dominion Bank (TSE: TD)(NYSE: TD) posted better-than-expected Q1 2022 results, as a rebound in customer activity helped boost revenue across the bank’s core businesses.

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Profits & Revenue

Profit came in at C$3.73 billion (C$2.02 per diluted share) for Q1 2022, an increase of 14% 26.5% from C$3.28 billion (C$1.77 per share) in Q1 2021.

On an adjusted basis, TD earned C$3.83 billion (C$2.08 per diluted share) in its latest quarter, up from C$1.83 per diluted share in the prior-year quarter. The consensus was for adjusted earnings of C$2.04 per share.

Revenue totaled C$11.28 billion in the quarter ended December 31, up 3.1% from C$10.81 billion a year ago. Analysts expected revenue of C$10.84 billion.

TD’s Canadian retail operations net income soared 11% year-over-year to C$2.25 billion.

Its U.S. retail business earned nearly C$1.27 billion, up 27% from a year ago.

The bank’s wholesale banking unit posted a 1% decrease in net income to C$434 million.

CEO Commentary

TD Bank Group president and CEO Bharat Masranai said, “TD started the year strong, delivering revenue growth across all our business segments as customer activity gained additional momentum. With a focus on growth, we continue to make investments in technology and new capabilities, positioning us well to meet our customers’ and clients’ evolving needs. I am also pleased to have announced our deal with First Horizon earlier this week. A bold acceleration of our U.S. strategy to acquire a premier regional bank, with a strong presence in highly attractive markets across the U.S. Southeast – a terrific strategic fit for TD.”

Wall Street’s Take

Following the results, Canaccord Genuity analyst Scott Chan kept a Hold rating on TD and a price target of C$110.50. This implies 10.2% upside potential.

Overall, TD scores a Moderate Buy rating among Wall Street analysts based on three Buys and six Holds. The average Toronto-Dominion Bank price target of C$111.39 implies11.1% upside potential to current levels.

TipRanks’ Smart Score

TD scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has good potential to beat the overall market.

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