Canadian personal and commercial banking was a bright spot for TD Bank which showed record earnings of $973 million – despite a $125 million after-tax charge related to insuring homes affected by the summer flooding in Alberta and Toronto.
The growth allowed TD to hike its dividend to shareholders for the second time this year, this time by another 4 cents per share.
“This means that our fiscal 2013 paid dividend will increase 12 percent since 2012,” said TD Bank CEO Ed Clark in a statement, “demonstrating the board's confidence in our continuing ability to deliver long-term earnings growth.”
TD’s earnings were also surprising, considering it was on top of the $48-million loss on its real estate loan portfolio this quarter, related to the flooding in southern Alberta.
The equivalent divisions across the Big Six banks have also been strong this reporting season. Much likes its peers, TD Bank saw loan growth, but was also aided by lower loss provisions, a non-cash benefit. (continued.)
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TD's U.S personal and commercial banking unit also reported a solid profit. After adjusting for one-time items, the division made $432 million, 22 percent more than the same period in 2012.
TD had pre-announced in July that it would set aside $292 million in after-tax reserves stemming from higher costs of settling personal injury automobile claims in Ontario – as the insurance unit struggled for the quarter.
