TD earnings surge in Q2

TD Bank’s second quarter earnings jumped more than 14% over 2Q11, reflecting record retail earnings and a solid performance from wholesale banking.

Canadian personal and commercial banking posted net income of $808 million. Adjusted net income was $838 million.

Wealth and insurance delivered net income of $365 million during the quarter, 16% ahead of last year – driven by strong premium growth and claims performance in the insurance business, and improved results in TD’s wealth business.

“This was a record quarter for both our wealth and insurance businesses,” says Mike Pedersen, group head of wealth management, insurance, and corporate shared services.

U.S. personal and commercial banking delivered a record quarter, with reported and adjusted net income of US$358 million, up 9%, from the same period in 2011.

“Strong growth in loans and deposits this quarter helped mitigate the impact of the Durbin Amendment for TD Bank,” said Bharat Masrani, group head of U.S. personal and commercial banking, adding the bank is on track “to open 35 new stores in 2012.”

Wholesale banking recorded $197 million in net income, up 5% compared with the same quarter last year. Higher revenues across a number of business lines, most notably investment banking, drove the increase. Revenues were hit by late quarter trading conditions in fixed income markets.

The bank’s Tier 1 capital ratio was 12% for the quarter. Capital quality remained high, with tangible common equity comprising more than 85% of Tier 1 capital. TD continues to exceed the 7% Basel III requirement.

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