Canadian banking giant TD Bank (TSE:TD) (NYSE:TD) rolled out its earnings report earlier today, and the news wasn’t particularly welcome among investors. Several comparisons between now and last year didn’t sit well at all, and investors sent shares down fractionally in Thursday morning’s trading as a result.
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Not everything was bad news, certainly. Adjusted diluted earnings per share, for example, came in at C$2.04, which compared nicely against the second quarter of 2023’s figure of C$1.91. Adjusted net income also outperformed, coming in at C$3.789 billion against the second quarter of 2023’s C$3.707 billion. Without the adjustments, however, things faltered, with reported earnings coming in at C$1.35 against 2023’s C$1.69 and reported net income coming in at C$2.564 billion against 2023’s C$3.306 billion.
A Mixed Bag All-Around
Some sectors performed much better than others; for instance, Wealth Management and Insurance saw a 19% increase against 2023’s second quarter, and Wholesale Banking, on an adjusted basis, saw a surge of 107% in net income. Meanwhile, its U.S. operations took a serious hit, with U.S. retail adjusted net income coming in at C$1.27 billion, down 16% against the second quarter of 2023.
Yet at the same time, TD Bank is operating under a cloud of suspicion right now, as incidents of “suspicious money-laundering activity” occurred. TD Bank CEO Bharat Masrani noted that these incidents were “serious,” could ultimately cost the bank over $2 billion, and that its failure to stop such activity was “unacceptable.”
Is TD Bank a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TD stock based on five Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 1.55% loss in its share price over the past year, the average TD price target of C$87.04 per share implies 14.34% upside potential.
