TD Bank says its second-quarter profit more than doubled compared with a year ago as the bank recovered some of its provisions for credit losses.

TD says it earned $3.7bn or $1.99 per diluted share for the quarter ended April 30, up from a profit of $1.5bn or 80 cents per share a year ago.

The improvement came as TD posted a $377-million recovery of credit losses for its latest quarter compared with a provision for credit losses of $3.2bn a year ago at the start of the pandemic.

Revenue totalled $10.2bn, down from $10.5bn in the same quarter last year.

On an adjusted basis, TD says it earned $2.04 per diluted share in its latest quarter, up from 85 cents per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.76 per share, according to financial data firm Refinitiv.

Covid remains a factor

CEO Bharat Masrani said: “TD reported strong results in the second quarter, reflecting the underlying strength of our diversified businesses, improving economic conditions and our prudent approach to managing risk.

“We continued to invest in our people, capabilities and technology to position our business for growth as economies re-open and consumer and business activity recovers.

“While we are encouraged by the progress being made on vaccinations, Covid-19 continues to be a factor in our lives and our focus remains on the safety of our people and on supporting the evolving needs of our customers and clients.

“As we look toward the future, we will continue to advance our strategy and contribute to a robust and inclusive recovery, guided by our purpose to enrich the lives of our customers, colleagues and communities.”

Canadian Retail

Canadian Retail reported net income was $2,182m, an increase of 86% compared with the second quarter last year, mainly reflecting lower provisions for credit losses (PCL) and record results in wealth and insurance.

Revenue increased 1%, reflecting growth in non-interest income and strong loan and deposit volumes, partially offset by lower margins and premium rebates for customers in the insurance business.

PCL was lower by $1,190m from the prior year, reflecting lower impaired and performing PCL.

Reported expenses increased 4%, with higher volume-driven and employee-related expenses, partially offset by prior year charges related to the Greystone acquisition.

Business momentum accelerated this quarter, with mortgage originations up strongly, credit card transactions rising, and good account growth across all of the businesses.

TD Insurance continued to take market share, becoming the third largest home and auto personal insurance provider in Canada, with strong customer engagement in its end-to-end digital capabilities.

For the fourth year in a row, TD Auto Finance was ranked Highest in Dealer Satisfaction among Non-Captive Lenders with Retail Credit by J.D. Power.

Canadian Retail continues to invest in its advice and service capabilities to help customers navigate change and plan for their financial future through personalized advice and tools.

TD was also recognized by the Business Intelligence Group for its AI-powered digital experiences and, as of April 2021, continues to lead in the number of Interac e-Transfer and Flash transactions.

US Retail

U.S. Retail net income was $1,316 million (US$1,047m), an increase of 292% compared with the second quarter last year.

The Bank’s investment in The Charles Schwab Corporation contributed $246m (US$194m) in earnings, compared with the contribution of $234m (US$174m) from TD Ameritrade a year ago.

The US Retail Bank, which excludes the Bank’s investment in Schwab, reported net income of $1,070m (US$853m), an increase of 949% from the second quarter last year, mainly reflecting lower PCL.

In US dollars, revenue increased 2% reflecting higher non-interest income, partially offset by lower deposit margins.

PCL was lower by US$987m ($1,350m) reflecting lower impaired and performing PCL. Expenses increased 4%, reflecting store optimization costs and higher employee-related expenses, partly offset by lower legal provisions.

In Canadian dollars, revenue and expenses declined 7% and 5%, respectively, primarily as a result of appreciation in the Canadian dollar since the second quarter last year.

The US Retail Bank continued to advance key strategic initiatives to enhance the customer experience this quarter, introducing the new Double Up Credit Card with one of the most valuable cash back offerings in the market.

For small business customers, TD continued to facilitate access to Small Business Administration (SBA) Paycheck Protection Program (PPP) financing, ranking seventh nationwide through Round 2 of the program.

TD Bank, America’s Most Convenient Bank was also proud to be recognized by Forbes as a Best Employer for Diversity 2021 for the third consecutive year.


Wholesale Banking reported net income of $383m this quarter, an increase of 83% compared to the second quarter last year, reflecting lower PCL, partially offset by lower revenue and higher non-interest expenses.

Revenue for the quarter was $1,157m, a decrease of 8% from a year ago, primarily reflecting lower trading-related revenue.

PCL was lower by $437m from the prior year, reflecting lower impaired and performing PCL.

The Wholesale Bank’s results benefited from its diversified business mix and client-focused franchise, which provides trusted advice and critical access to markets.

This quarter, TD announced an agreement to acquire Headlands Tech Global Markets LLC, a Chicago-based quantitative fixed income trading company, to strengthen its electronic bond trading infrastructure, deliver data-driven innovation and grow its global platform.

The deal is expected to close in the second half of calendar 2021, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions.


TD’s Common Equity Tier 1 Capital ratio was 14.2%.


“TD is strong and well-capitalized, and we continue to adapt and grow through this time of disruption.

Our performance demonstrates the strength of our proven business model, brought to life through the efforts and resilience of our 90,000 colleagues across the globe who live our purpose and demonstrate a deep commitment to the Bank, those we serve, and the communities where we live and work,” concluded Masrani.