Shares of The Toronto-Dominion Bank (NYSE:TD) (TSE:TD) are ticking marginally higher today after its second-quarter revenue increased by 9.9% year-over-year to C$13.82 billion. Its EPS of C$2.04 came in better than last year’s mark of C$1.91.
Canada Operations Deliver
The quarter was marked by positive momentum in TD’s business franchise. Its Canadian Personal and Commercial Banking net income rose by 7% to C$1.74 billion, driven by volume growth and positive operating leverage.
But U.S. Operations Disappoint
On the other hand, net income in TD’s U.S. retail operations declined by 59% to C$580 million. Excluding contributions from its investment in Charles Schwab, net income from TD’s U.S. retail bank plunged by 66% owing to provisions for regulatory investigations. The bank is facing probes for non-compliance with anti-money laundering norms.
Wealth Management Saves the Day
Its Wealth Management and Insurance unit, however, fared better with a 19% jump in its net income. These gains were driven by insurance premium growth and an increase in fee-based and transaction revenue. Notably, TD’s Wholesale Banking division clocked an impressive 107% jump in net income owing to higher revenue from trading activities and underwriting fees.
Separately, TD Bank has declared a dividend of C$1.02 per share. The TD dividend is payable on or after July 31 to investors of record on July 10.
Is TD a Buy, Sell, or a Hold?
TD Bank’s share price has declined by nearly 6.5% over the past six months amid its regulatory woes. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average TD price target of $63.85. However, analysts’ views on the stock could see a revision following today’s earnings report.
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