Toronto-Dominion Bank (TSX:TD) beat analysts' estimates for its fiscal third quarter, boosted by stronger-than-expected performance in its capital-markets business and gains across all its divisions.
TD reported a third-quarter profit of $4.62 billion, up from $3.34 billion in the same quarter last year.
Profit amounted to $2.74 per diluted share for the quarter ended July 31, up from $1.89 per diluted share a year earlier. On an adjusted basis, TD said it earned $2.77 per diluted share, up from an adjusted profit of $2.20 per diluted share in the same quarter last year.
Analysts on average had expected a profit of $2.47 per share and $15.28 billion in revenue, according to LSEG Data & Analytics.
Revenue for the quarter totaled $16.89 billion, up from $15.30 billion a year earlier.
TD's provision for credit losses amounted to $917 million, down from $971 million in the same quarter last year.
The bank also announced plans to open 100 new branches in the United States.
Jefferies analysts said TD produced an impressive quarter, driven by active cost management that generated substantial positive operating leverage, adding that the bank's 16% return on equity was notable given the level of capital it continues to hold. The analysts said further upside remains available as TD pursues its growth strategy in its US retail platform.
Jefferies raised its price target on TD by $5 to $164, citing the bank's cost controls, rising return on equity and building momentum in its US platform.