Toronto-Dominion Bank (NYSE: TD) reported their earnings earlier today and shown a drop in their first quarter. The company reported a drop of 7.1% from last years first quarter down to $2.35 billion CAD from it’s past reported earnings of $2.53 billion CAD. The New tax law that was put in place by President Donald Trump has a large role to play in the drop. The newly reformed laws have been affecting large financial institutions throughout the U.S and TD reported a charge of $453 million CAD because of the new law. TD is the latest in large institutions reporting huge losses due to the reformed laws.
Despite the reported drops the earnings report showed some positive results. “While there are risks on the horizon, if these positive conditions persist, adjusted earnings growth for the full year may exceed our medium-term targets,” Chief Executive Bharat Masrani (As reported from The Wall Street Journal)
The bank reported a 19% profit increase in the U.S businesses and a 12% increase profit in their Canadian businesses. Their total revenue increased 2.6% and their net interest income increased 5.6%. Shares have also risen almost 7% wthin the past year. So even though this year’s first quarter is down from last fiscal year’s 2018 looks promising for the Canadian Bank. Profits are up across the board and would have been a much stronger quarter if the new tax law hadn’t taken a $453 million dollar one time charge.