Toronto-Dominion Bank (NYSE: TD) stock rose over 3.6% on August 31st, 2017 (as of 10:38AM EDT; Source: Google finance) post their third quarter of 2017 results update. The group’s third quarter earnings rose 17% yoy to $2.8 billion, on the back of better credit performance across all of their businesses, and lower insurance claims. The Bank intends to amend their normal course issuer bid to repurchase for cancellation of up to further 20 million of its common shares, subject to regulatory approval.
Toronto-Dominion Bank’s Canadian Retail segment’s net income rose 14% yoy to $1,725 million, during the third quarter of 2017 driven by better revenue growth and lower insurance claims. The Canadian Retail businesses continued to harness the power of One TD, given the better volumes, including record real estate lending originations, and growth in wealth assets. U.S. Retail net income enhanced 14% yoy to $901 million (US$678 million) during the period against $788 million (US$609 million) in pcp.
Toronto-Dominion Bank’s Wholesale Banking net income reached $293 million driven by better revenue from corporate lending and trading. Their investments in U.S. dollar businesses is ongoing which comprises in client-facing employees and TD Prime Services. Their new prime brokerage business, led to better expenses this quarter.
The bank’s Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis reached 11.0%, from 10.8% in the earlier quarter. Toronto-Dominion Bank’s rallied 11.7% in the last three months. The Toronto-Dominion Bank reported a dividend in an amount of sixty cents (60 cents) per fully paid common share in the capital stock payable on and after October 31, 2017, to shareholders of record on October 6, 2017.
The Toronto-Dominion Bank intends to exercise their right to redeem on September 20, 2017 all of their outstanding CDN$270 million 4.644% Fixed Rate/Floating Rate Subordinated Notes due September 20, 2022, at a redemption price of 100% of the principal amount.