Toronto Dominion Q119 results highlight the strength of its retail banking franchise.

Canadian retail banking adjusted net income rises 6% year-on-year to C$1.86bn. Meantime, TD’s US retail banking adjusted net income rises by 21% y-o-y to C$1.24bn.

Toronto Dominion Q119 group wide posts reported earnings of C$2.4bn up 2% y-o-y.

Canadian retail banking revenue rises by 8% reflecting contributions across all businesses. Loan volumes are up by 6% y-o-y with deposits rising by 3%. The Canada retail net interest margin rises 6 basis points from a year ago to 2.94%.

On the other hand, TD’s mortgage lending growth is slowing. And there are signs of eroding credit. For instance, TD is setting aside C$310m  for soured loans in Canada, up 15% y-o-y.

Earnings at the US retail banking unit reflect loan and deposit volume growth, and higher margins. US retail loan volumes rise by 3% y-o-y with deposits up by 2%. TD’s US retail net interest margin rises by 25 basis points y-o-y to 3.42%.

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Toronto Dominion Q119: miss forecasts, wholesale banking loss

On the other hand, TD’s results for the quarter ended 31 January miss analyst forecasts. The bank posts a C$17m loss at its wholesale banking business due to lower trading revenue and higher expenses. In the year ago quarter the unit reported net earnings of C$278m.

Nevertheless, Toronto-Dominion raises its quarterly dividend by 10% to C$0.74.

TD ends the first quarter with 1,129 branches in Canada, down a net 30 units from a year ago.

At the same time, the TD branch network in the US inches down by 4 branches to 1,240 outlets.

“TD’s retail segments in Canada and US had a strong start to the year, with continued revenue growth and solid earnings,” says Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group.

“New digital capabilities are deepening our customer relationships. This allows us to offer more personalised and connected experiences to our growing North American customer base.

For instance, Clari: an AI powered chatbot that allows customers to engage with the bank in differentiated ways.