Toronto-Dominion Bank (TSE:TD) said fiscal second-quarter profit dropped 6.5 percent as Canada’s second-largest bank by market value took a C$228 million restructuring charge.
Net income was $1.86 billion, or C$0.97 per share, for the three months ended April 30, compared with C$1.99 billion, or C$1.04 per share, a year ago, the Toronto-based company said in a statement today.
Excluding special items, earnings rose to C$1.14 a share. Analysts, on average, expected earnings of C$1.11 a share, according to Capital IQ.
Revenue rose 4.4 percent to C$7.76 billion from a year earlier, beating analysts’ estimates.
TD Bank said it took measures to cut costs and manage expenses in the quarter, including “process redesign and business restructuring,” as well as retail branch and real estate “optimization.” The lender reported 330 fewer employees as of April 30 compared with the first quarter, with reductions in both Canadian and U.S. retail banking.
“The organizational and productivity changes we are making will enable us to become fitter and faster, to better meet our customers’ expectations, and adapt to the low-growth economic environment,” chief executive officer Bharat Masrani said in the statement.
Toronto-Dominion’s U.S. operations posted adjusted profit of C$626 million, up from C$548 million a year earlier. Canadian retail adjusted profit, which includes wealth management and insurance, rose 6.4 percent to C$1.44 billion.
Wholesale-banking adjusted earnings climbed 19 percent to C$246 million.
The bank maintained its dividend at C$0.51 per share. The dividend is payable on and after July 31 to shareholders of record at the close of business on July 9.
Shares fell 0.5 percent to C$55.68 at 10:22 a.m. in Toronto, after rising to as high as C$56.38 earlier in the day.
Earlier today, Royal Bank of Canada (TSE:RY), the largest Canadian lender, posted a 14 percent rise in its fiscal second-quarter, aided by stronger earnings in its domestic-banking and capital markets operations. The bank retained its quarterly payout at C$0.77 per share.
Also today, Canadian Imperial Bank of Commerce (TSE:CM) said second-quarter profit beat estimates, led by gains in wholesale banking and wealth management. The Toronto-based lender raised its dividend 2.8 percent to $1.09 per share.
Yesterday, Bank of Montreal (TSE:BMO), Canada’s fourth-largest lender, increased its quarterly dividend 2 percent to C$0.82 per share after reporting fiscal-second-quarter profit that topped analysts’ estimates.
Also yesterday, National Bank of Canada (TSE:NA), the country's sixth-largest lender, raised its dividend payments to C$0.52 per share from $0.50 per share, after reporting a 12 percent increase in profit for its fiscal second quarter.
Bank of Nova Scotia (TSE:BNS), Canada’s third-largest lender, reports results tomorrow.