Toronto-Dominion Bank (TD) Misses Q4 EPS by 8c

Toronto-Dominion Bank (NYSE: TD) reported Q4 EPS of CDN$0.98, versus the analyst estimate of CDN$1.06.

We are pleased to finish out the year with strong total adjusted earnings of $8.1 billion," said Bharat Masrani, Group President and Chief Executive Officer. "Results for the year reflect good earnings from each of our businesses, driven by organic growth, strong fundamentals, and good results from recent acquisitions."

Canadian Retail
Canadian Retail delivered reported net income of $1.3 billion in the fourth quarter. On an adjusted basis net income was $1.4 billion, representing a 7% increase over the same quarter last year. Higher earnings were driven by good growth in loans, deposits, wealth assets under management and the addition of Aeroplan.

"A good fourth quarter helped us deliver another great year for Canadian Retail," said Tim Hockey, Group Head, Canadian Banking, Auto Finance and Wealth Management. "In 2015 our focus will continue to be on providing customers with great products and services that enable financial goals and supporting our colleagues in providing legendary customer experiences across all channels."

U.S. Retail
U.S. Retail generated net income of US$462 million, representing relatively flat earnings on an adjusted basis compared with the fourth quarter last year. Excluding the Bank's investment in TD Ameritrade, the segment generated net income of US$385 million, as strong organic growth, good productivity and excellent asset quality were offset by lower securities gains and margin compression.

TD Ameritrade contributed US$77 million in earnings to the segment, an increase of 5% compared with the fourth quarter last year.

"U.S. Retail continued to outgrow the industry in 2014," said Mike Pedersen, Group Head, U.S. Banking. "Despite a challenging operating and evolving regulatory environment, we had a good overall performance. Our fundamentals are solid going in to 2015, as we focus on deepening customer relationships, evolving our distribution strategy and increasing productivity."

Wholesale Banking
Wholesale Banking net income for the quarter was $160 million, an increase of 31% compared with the fourth quarter last year, reflecting strong business fundamentals and a rebound from the fourth quarter of 2013 that included higher non-interest expenses.

"The Wholesale business delivered a solid finish to a great year," said Bob Dorrance, Group Head, Wholesale Banking. "Improved capital markets, good trading results, and a robust performance in investment banking were key drivers of our performance. We remain focused on attracting new clients and expanding existing relationships, and managing risks and productivity in 2015."

Capital
TD's Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis was 9.4%, compared with 9.3% last quarter.

Conclusion
"Our 2014 results demonstrate the earnings power and underlying growth potential across all of our businesses. As we close 2014, I'd like to thank our 85,000 colleagues here at TD for their relentless dedication to making the Bank stronger and delivering exceptional customer service," said Masrani. "As we look ahead to 2015, we expect the operating environment to be more challenging. We will focus on organic growth, delivering legendary experiences across every channel, and increasing productivity while investing for the future."

For earnings history and earnings-related data on Toronto-Dominion Bank (TD) click here.

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