TORONTO — TD Bank Group reported its second-quarter profit fell compared with a year ago, hit by costs related to an investigation in the United States tied to the failure of its anti-money laundering programs.
The big Canadian bank recorded an initial charge of $615 million in the quarter in connection with its talks with one of its U.S. regulators.
TD has said it anticipates additional penalties as its discussions continue with its regulators in the United States and the U.S. Department of Justice.
"The bank has been co-operating with U.S. regulators and authorities in good faith for many months and is working diligently to bring these investigations to resolution so that investors can have more clarity," TD said as it reported its latest results.
The bank said Thursday it earned net income of $2.56 billion or $1.35 per diluted share for the quarter ended April 30, down from $3.31 billion or $1.69 per diluted share in the same quarter last year.
Revenue totalled $13.82 billion for the quarter, up from $12.40 billion a year earlier.
The bank's provision for credit losses amounted to $1.07 billion for the quarter, up from $599 million in the same quarter last year.
On an adjusted basis, TD says it earned $2.04 per diluted share, up from an adjusted profit of $1.91 per diluted share a year earlier.
The average analyst estimate had been for a profit of $1.85 per share, according to data provided by LSEG Data & Analytics.
"We delivered significant positive operating leverage while continuing to invest in our business, including our risk and control infrastructure," TD Bank Group chief executive Bharat Masrani said in a statement.
The bank's latest results came as its Canadian personal and commercial banking business earned $1.74 billion in its latest quarter, up from $1.63 billion in the same quarter last year.
Meanwhile, TD's U.S. retail business earned $580 million, down from $1.41 billion in the second quarter last year.
The bank's wealth management and insurance business earned $621 million, up from $524 million a year earlier, while its wholesale banking operations earned $441 million, up from $213 million a year ago.
This report by The Canadian Press was first published May 23, 2024.
Companies in this story: (TSX:TD)
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