U.S. Division Boosts TD Bank Group's Profit

By Allison Prang

An increase in earnings from TD Bank Group's U.S. division helped drive profit higher in the company's third quarter.

TD said it U.S. retail division earned 1.14 billion Canadian dollars ($883.16 million), up 27% from the year-earlier comparable quarter. That was helped by the equity of its TD Ameritrade investment, which brought in C$225 million for the division, up 91%, primarily as a result of TD Ameritrade's purchase of Scottrade. TD Ameritrade Holding Corp. bought Scottrade Financial Services Inc. in September of 2017.

For the U.S. retail-banking division alone, which doesn't include the TD Ameritrade investment, earnings rose 17% to C$918 million. TD attributed the increase to higher deposit margins, the new U.S. tax law and an increase in loan and deposit volume. Net interest income in the division rose while noninterest income declined.

TD reported total earnings of C$3.11 billion, up 12% from the comparable quarter a year earlier. Earnings per share came in at C$1.65 up from C$1.46. TD's provision for credit losses rose 11% to C$561 million.

Earnings in TD's Canadian banking division rose 7.4% to C$1.85 billion. Both noninterest income and net interest income rose.

Wholesale banking profits fell 24% to C$223 million. TD said trading revenue was down.

"While we continue to see pockets of market uncertainty stemming from the geopolitical climate, both the Canadian and U.S. economies continue to perform well and support a positive outlook for our diversified businesses across the bank as we head into the final stretch of the year, " said Chief Executive Bharat Masrani in prepared remarks.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

August 30, 2018 09:31 ET (13:31 GMT)

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