TD Bank Group beat expectations as it reported a third-quarter profit of $3.55 billion, up from $2.25 billion in the same quarter last year.
The bank said Thursday the profit amounted to $1.92 per diluted share for the quarter ended July 31, up from $1.21 per diluted share a year earlier.
Revenue totalled $10.71 billion, up from $10.67 billion.
The results came as TD reported a recovery of credit losses of $37 million in its latest quarter compared with a provision for credit losses of $2.19 billion a year ago.
On an adjusted basis, TD says it earned $1.96 per diluted share, up from an adjusted profit of $1.25 per diluted share in its third quarter last year.
Analysts on average had expected a profit of $1.92 per share, according to financial market data firm Refinitiv.
TD CEO Bharat Masrani said the bank’s performance in the quarter was supported by revenue growth in its Canadian and U.S. retail businesses as economic activity picked up on both sides of the border.
“While businesses and consumers are resuming some of their normal activities and more people are getting vaccinated, recent developments and new variants remind us that the global pandemic is not yet over,” Masrani said in a statement.
“TD will continue to adapt in this fluid environment, adjust in real time, and prioritize the well-being of our people and all those we serve.”
TD said its Canadian retail business, which includes the wealth and insurance businesses, earned $2.13 billion in its latest quarter, up from $1.26 billion in the same quarter last year — an increase of 68%.
Revenue in Canadian retail increased 9%, supported by continued momentum in mortgage originations and deposits, strong commercial loan growth and mutual fund sales, as well as record card sales, the bank said in a release.
Assets under administration and under management increased to $538 billion and $420 billion, respectively.
In the U.S., TD said its retail business earned $1.3 billion, up from $673 million a year ago.
TD said wholesale banking, which includes its capital markets and corporate and investment banking business, earned $330 million, down from $442 million in the same quarter last year.
Two acquisitions were completed in the quarter: the Wells Fargo & Company’s Canadian Direct Equipment Finance Business, and Headlands Tech Global Markets, LLC, a Chicago-based quantitative fixed-income trading company.
The bank declared a dividend of $0.79 per share for the quarter ending Oct. 31, unchanged from the previous quarter and year over year.
The bank also announced Thursday the appointment of Cherie Brant, a partner and national leader for the Indigenous law group at Borden Ladner Gervais LLP, to its board of directors.
Brant, who is both Mohawk from Mohawks of the Bay of Quinte and Ojibway from Wikwemkoong Unceded Indian Reserve, also serves on the board of Hydro One Ltd.