Toronto-Dominion Bank (TSX:TD) reported mixed fiscal second quarter financial results as it overhauls its US anti-money laundering program amid scrutiny from regulators.
For the quarter ended April 30, 2024, the Canadian bank posted adjusted earnings per share (EPS) of C$2.04, up from C$1.91 in the year-ago quarter and ahead of C$1.85 expected by analysts.
However, its net income of C$2.56 billion was down from C$3.7 billion in the year-ago quarter and was slightly below the consensus estimate of C$2.58 billion.
During fiscal 2Q, the bank set aside an initial provision of C$615 million for investigations related to its anti-money laundering (AML) program, as it faces multiple US law enforcement and regulatory investigations into the alleged laundering of funds connected with illegal drug sales.
“The bank has been cooperating with US regulators and authorities in good faith for many months and is working diligently to bring these investigations to resolution so that investors can have more clarity,” TD said in a statement.
“A comprehensive overhaul of TD's US AML program is well underway and will strengthen our program globally.”
It also reported greater than expected provisions for credit losses of C$1.07 billion, above the C$1 billion forecast by analysts.
Shares of TD traded modestly higher, up 0.2% at C$25.25 post-earnings.