Canada's TD Bank's fourth-quarter profit falls on higher provisions
Reuters
Published Nov 30, 2023 09:30
(Reuters) -TD Bank Group reported a fall in its fourth-quarter profit on Thursday, as Canada's second-largest lender set aside more rainy-day funds to cover for potential sour loans.
Multiple interest rate hikes by the Bank of Canada allowed lenders to charge more on loans. But that, along with persistent inflationary pressures and tough economic conditions, has also raised the risk of defaults on loan repayments, forcing banks to set aside more provisions for credit losses (PCL).
TD (TSX:TD)'s PCL rose to C$878 million in the quarter, from C$617 million a year earlier.
Peer Scotiabank (TSX:BNS), which kicked off the Canadian banks' earnings season on Tuesday, also earmarked higher funds to prepare for potential loan losses, dragging its profit down.
TD's net interest income - the difference between what banks earn on loans and pay out on deposits - fell nearly 1.8%, to C$7.49 billion.
The lender's personal and commercial business posted a 1% decrease in net income, while the U.S. retail unit dipped 17%.
The bank's adjusted net income fell to C$3.51 billion ($2.58 billion), or C$1.83 per share, for the three months ended Oct. 31, from C$4.07 billion, or C$2.18 per share, a year earlier.
($1 = 1.3618 Canadian dollars)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.