TD Bank beat Q2 adjusted EPS consensus by $0.12, drove record earnings in Canadian P&C and wealth management, and cut provisions. Dividend raised 3.7%.
TD Bank Group (TD) reported second-quarter adjusted earnings of $2.38 per diluted share, beating the analyst consensus of $2.26 compiled by LSEG Data & Analytics. The bank raised its quarterly dividend to $1.12 per share from $1.08. Reported profit came in at $2.43 per share for the period ended April 30, compared with $6.27 a year ago when the bank recorded the sale of its shares in Charles Schwab Corp.
The bank's Canadian personal and commercial banking segment generated net income of $1.93 billion, up from $1.67 billion a year ago. Higher revenue and a lower provision for credit losses drove the increase. Provision for credit losses fell to $1.00 billion from $1.34 billion, reflecting improved credit conditions across the portfolio. Wealth management and insurance earnings reached $837 million, up from $707 million, also a record. Wholesale banking contributed $612 million versus $419 million in the same quarter last year.
TD's U.S. banking operations earned $813 million, compared with just $120 million a year earlier. That swing accounted for the largest segment-level improvement and suggests the bank's U.S. retail business is gaining traction. Overall revenue for the quarter totaled $15.80 billion, down from $22.94 billion last year due to the absence of the Schwab sale gain. Excluding that item, revenue trends are steadier across the combined banking, wealth, and wholesale lines.
The 3.7 percent dividend increase to $1.12 follows adjusted earnings growth of 21 percent year-over-year. CEO Raymond Chun said in a statement that the bank drove record second-quarter earnings in Canadian personal and commercial banking as well as all-time high earnings in wealth management and insurance and wholesale banking. The adjusted payout ratio remains sustainable given the bank's capital position and lower credit costs.
TD Bank's next catalyst is the pace of its U.S. banking expansion and capital deployment strategy. Investors will watch for further margin improvement in Canadian lending and any update on the bank's regulatory standing. For broader context on financial-sector trends, see the full stock market analysis page.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.