Toronto-Dominion Bank Reports Strong Q4 2024 Earnings
Toronto, Thursday, 5 December 2024.
Toronto-Dominion Bank’s Q4 2024 results reveal net income of CAD 3,635 million, demonstrating robust financial performance. This could positively impact investor confidence and stock market dynamics.
Key Financial Performance
Toronto-Dominion Bank (NYSE: TD) reported its fourth quarter results for the period ending October 31, 2024, with reported diluted earnings per share of CAD 1.97, marking an increase from CAD 1.48 in the previous year [4]. The bank’s total revenue reached CAD 15,514 million, with adjusted net income of CAD 3,205 million [4]. However, the adjusted earnings per share of CAD 1.72 fell short of analyst expectations of CAD 1.83 [3].
Strategic Changes and Challenges
In a significant development, TD Bank has suspended its medium-term financial targets for earnings growth and return on equity as of December 4, 2024 [3]. This decision comes in the wake of a historic USD 3.1 billion settlement with U.S. authorities regarding money laundering investigations resolved in October 2024 [3]. The bank’s shares have experienced a 12% decline in 2024, with the stock closing at CAD 75.26 on December 4, 2024, down 5.5% [3].
Segment Performance and Future Outlook
The U.S. retail unit showed concerning performance with net income of CAD 863 million, representing a 32% decrease [3][4]. The capital-markets division reported adjusted net income of CAD 299 million, falling below analyst estimates of CAD 379 million, though showing a 68% year-over-year improvement [3]. Looking ahead, TD Bank has announced a leadership transition, with CEO Bharat Masrani set to retire in April 2025, to be succeeded by Raymond Chun [3].
Strategic Review and Risk Management
The bank has initiated a comprehensive strategic review focusing on business mix, profitability, and risk-adjusted return on capital [3]. TD’s Common Equity Tier 1 Capital ratio stands at 13.1% [4], demonstrating strong capital adequacy. The bank plans to hold an investor day in the second half of fiscal 2025 to provide updated guidance and strategic direction [3]. Additionally, TD is implementing measures to reduce its U.S. assets by 10% to comply with American asset cap regulations [3].