Toronto-Dominion Bank (USA) Earnings Per Share Jump 15% in Second Quarter

Thanks to impressive growth and recent acquisitions, TD Bank announced today its earnings climbed to CA$2.1 billion in the second quarter of 2014.

May 22, 2014 at 10:42AM

Toronto-Dominion Bank (NYSE:TD) reported its results for the second quarter of its 2014 fiscal year today, and its adjusted earnings per share -- which exclude acquisition costs -- jumped 15% from CA$0.95 to CA$1.09. Through the first half of the year its adjusted earnings per share have risen from CA$1.94 to CA$2.15, a gain of 11%.

"By any measure, our results this quarter were outstanding," noted the CEO and group president of TD Bank, Ed Clark, in the company's earnings announcement. "Adjusted earnings were CA$2.1 billion, up 14% from the same period last year, driven by strong organic growth and contributions from our recent acquisitions. These results demonstrate the considerable earnings power of our business model."

Td Centre By Oliver Mallich

TD Centre Source: Flickr / Oliver Mallich.

As noted by Clark, part of the reason behind the strong gains were the various acquisitions TD Bank made in recent years, including the acquisition of the credit card portfolio of Target Corporation and its acquisition of Epoch Investment Partners (both completed in March 2013) and the Aeroplan acquisition (fully completed in January of this year).

The impressive gains reported by TD Bank came from both its Canadian and U.S. retail segments. Its larger Canadian business saw its adjusted net income rise from CA$1.20 billion to CA$1.35 billion, a gain of 12%. In addition its retail business in the U.S. delivered impressive growth, as its net income rose 26% to CA$548 million, including strong growth in its investment in TD Ameritrade, which saw its earnings rise to CA$78 million, a gain of 35%.

The wholesale banking business saw its net income fall by CA$13 million to CA$207, a decline of 6%, as a result of heightened expenses. The head of the wholesale banking unit, Bob Dorrance, was optimistic, though, noting: "We are pleased with our second quarter results. We are confident that our diversified, integrated business model will continue to deliver solid earnings."

In total TD Bank also delivered growth in its profitability ratios as its adjusted return on common equity rose from 16.1% to 16.6% and its efficiency ratio declined from 55% to 54.2%.

"At the half-year mark, earnings growth has exceeded our expectations." added Clark, as he noted the company plans to grow earnings between 7% and 10% for the full year. "In addition to great execution on acquisitions and good organic growth in a tough operating environment, we benefited from strong credit performance and favourable currency translation."

Clark concluded his remarks by noting, "Looking ahead, our strategy remains focused on delivering legendary experiences, attracting new customers and leveraging the power of TD across our businesses."

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers