Toronto Dominion Bank

Toronto Dominion delivered a mixed result in the recent quarter with revenues above market expectations but it failed to surpass the analyst consensus in terms of earnings. However, the bank remained resilient and focused on growth. The personal and commercial banking businesses experienced margin growth, and TD Securities saw positive contributions from advisory fees, equity commissions, and global transaction banking and lending revenue. Provision for credit losses increased, and expenses were driven up by the acquisition and integration-related charges. During the last quarter, TD’s Canadian Personal and Commercial Banking segment showed steady progress, with increased net income and revenue. Loan volumes and deposits saw modest growth, although there was a shift towards term deposits and higher-yielding investments. The Wealth Management and Insurance segment reported a decrease in net income, primarily due to lower transaction and fee-based revenue in the wealth division. In the quarter, the bank called off its proposed acquisition of First Horizon Corp, valued at $13.4 billion citing the absence of a clear regulatory approval timeline as the reason. We give The Toronto-Dominion Bank a ‘Buy’ rating with a revised target price.