(Bloomberg) — Toronto-Dominion Bank’s focus on consumer banking paid off last quarter, with a reopening of the economy in Canada boosting lending results.
Net income in the lender’s Canadian retail segment rose 68% to C$2.13 billion ($1.69 billion), helped by a 7.7% gain in person loans, according to a statement Thursday. Overall profit for the fiscal third quarter topped analysts’ estimates.
The comeback of the Canadian economy in recent months, even as the Covid-19 pandemic lingers, has spurred mortgage growth amid a thriving housing market and an uptick in other personal loans. That disproportionately benefits Toronto-Dominion, which has a major retail presence in both the U.S. and its home market of Canada.
The widespread vaccination campaigns on both sides of the border have also allowed banks to set aside less capital to cover a potential wave of defaults or even release some of their earlier provisions. Toronto-Dominion released C$37 million of set-asides for potential loan losses in the three months through July, compared with C$377 million of releases in the previous quarter.
Toronto-Dominion’s shares have risen 19% this year, compared with a 26% gain for the S&P/TSX Commercial Banks Index.
Also in the results:
Net income rose 58% to C$3.55 billion, or C$1.92 a share.Profit excluding some items was C$1.96 a share. Analysts estimated C$1.92, on average.Net interest margin held steady from the previous quarter at 1.56%.
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