Toronto Dominion Bank beats Q3 estimates

Toronto-Dominion Bank (NYSE: TD) reported its third quarter earnings for the 2017 fiscal year and beat estimates.

TD reported an EPS increase of C$1.51, up 13 percent from C$1.27 year over year and beating Thomson Reuters analyst estimate of C$1.36. The bank reported net income of C$2.87 billion, up 15 percent from C$2.42 billion year over year.

Canadian retail net income grew by 14 percent to C$1.7 billion, while U.S. retail net income also grew by 14 percent to C$901 million compared to the previous quarter of C$788 million.

The U.S. retail bank, excluding TD’s investment in TD Ameritrade, generated a net income of C$783 million, an 18 percent increase year over year. The U.S. retail bank has now delivered 10 percent revenue growth year over year. Earnings growth reflected strong operating leverage, a more favourable interest rate environment, and continued good credit performance, according to the statement.

"This was a great quarter for TD reflecting impressive earnings and revenue growth, better credit performance across all our businesses, and lower insurance claims," said Bharat Masrani, Group President and Chief Executive Officer.

"Our unwavering focus is on helping our customers feel confident about their financial future and ready for everything that life brings their way," said Masrani. "TD's performance this quarter demonstrates the strength of our businesses in Canada and the U.S. The world around us is changing at a rapid pace and we continue to innovate and simplify how we do business."

Helping Canada’s biggest banks post above-forecast profits has been the robust economic growth rate – the fastest of any country this year in the G7 grouping of major developed economies, according to Reuters.

TD Chief Financial Officer Riaz Ahmed also says that the bank benefited from the unexpected strong Canadian market performance.

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