![]() ![]() ![]() Especially for banks, it is extremely important to look at the financial health and take into account potential risks. Similar to all other banks, we should not make the mistake of just looking at the income statement. However, the only segment that reported top line growth (11% YoY growth) as well as net income growth (4% YoY) was the Canadian P&C Banking segment. Retail increased revenue 14% (in reported numbers) to $2,654 million. Wholesale Banking increased revenue 13% YoY to $1,417 million and U.S. While revenue for Wealth Management & Insurance increased revenue only 2% to $2,735 million, the other three segments increased revenue in the double digits. When looking at the different segments, all four could contributed to revenue growth. And adjusted diluted earnings per share declined 4.0% from $2.02 in Q2/22 to $1.94 in Q2/23. However, non-interest expenses, insurance claims and related expenses as well as provision for credit losses also increased and therefore diluted earnings per share declined from $2.07 in Q2/22 to $1.72 in Q2/23 – reflecting a decline of 16.9% YoY. And while non-interest income increased only slightly from $4,886 million in Q2/22 to $4,938 million in Q2/23 – resulting in 1.1% YoY growth – net interest income increased 16.5% YoY from $6,377 million in the same quarter last year to $7,428 million this quarter. Total revenue increased from $11,263 million in Q2/22 to $12,366 million in Q2/23 – resulting in 9.8% year-over-year growth. Quarterly ResultsĪlthough Toronto-Dominion bank missed earnings per share estimates by $0.15 in its second quarter results, the company still reported good results – like most other banks in the United States and Canada. dollar, we should take another look at the stock. Now with the stock trading about 28% below its previous high in Canadian dollar and about 32% below its previous high in U.S. Since the article was published, Toronto-Dominion Bank lost about 15% of its value and being cautious was probably the right call. And although I called Toronto-Dominion Bank ( NYSE: TD) the best pick among Canada’s major banks in my last article, I still rated the stock as a hold and was rather cautious about an investment. There are only a few exceptions – like Svenska Handelsbanken ( OTCPK:SVNLF ), which I covered recently.Īside from Svenska Handelsbanken I am also more optimistic for Canadian banks as these banks are usually well capitalized and Canada has higher financial requirements for its banks than the United States for example. In the last few months, I published several articles about different banks around the world and although all these banks are trading for extremely low valuation multiples (in many cases in the single digits), I am mostly cautious in my articles. ![]()
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