TD Bank's profit soars in 1Q -- despite a dip at TD Ameritrade

Toronto-based TD Bank Financial Group on Thursday said profit for its fiscal first quarter soared 98 percent on record revenue as loan losses stabilized, deposits grew and lending increased. One down spot: profit slipped 5.3 percent in the wealth management unit, which includes the parent company's equity share in online broker TD Ameritrade. But for the quarter ended Jan. 31, the company reported net income of 1.29 billion Canadian dollars, ($1.25 billion) or 1.44 Canadian dollars ($1.39) per share, compared with 653 million Canadian dollars, or 75 Canadian cents per share, in the same period a year before. Adjusted for investment losses, restructuring and integration charges related to the acquisition of Commerce Bank, and other items, the bank earned 1.43 billion Canadian doollars($1.39 billion) or 1.60 Canadian dollars ($1.55) per share. Analysts polled by Thomson Reuters expected profit of $1.35 per share. Analyst estimates typically exclude one-time items. Revenue rose to 5.04 billion Canadian dollars ($4.89 billion) from 4.15 billion Canadian dollars in the same period a year ago. Net interest income, or money earned from deposits, rose 4.4 percent to 2.85 billion Canadian dollars ($2.77 billion) from 2.73 billion Canadian dollars last year. Non-interest income, or money earned from fees and charges, jumped 53 percent to 2.19 billion Canadian dollars ($2.12), from 1.42 billion Canadian dollars a year earlier. TD Bank decreased its provision for credit losses, or money set aside to cover souring loans, by 18 percent to 517 million Canadian dollars ($502 million) from 630 million Canadian dollars the year before. Profit in the U.S. personal and commercial banking unit rose 5 percent, excluding charges, as fee revenue rose and deposits grew. Profit rose 23 percent in the Canadian personal and commercial banking unit, primarily on increased real estate lending. Higher personal banking and business deposits also pushed profits higher, the company said.