Toronto Dominion Bank


SKU: TD Category:


This is our first report on a major Canadian banker, Toronto Dominion Bank. In Q1, the bank had a good quarter and delivered an all-around beat. Revenue grew by 8%, and a net loss was recorded to offset the impact of interest rate volatility on the closing capital for the First Horizon purchase. The margin and volume growth in the personal and commercial banking sectors as well as the effects of forex translation, can be seen in the adjusted revenue rise of 16%. In comparison to the first quarter of the previous year, the provision for credit losses increased to $690 million from $72 million. PCL increased sequentially by $98 million to $327 million. Noninterest costs climbed 10% from the previous year to represent higher spending on items that promote business expansion, such as technology and labor-related costs. The net income for wealth management and insurance was $550 million, a 14% decrease from the previous year. Insurance claims also increased 29% yearly, reflecting the impact of changes in the concession rate. Furthermore, Toronto Dominion Bank completed the acquisition of Cowen. The management anticipates this acquisition will promote TD Securities’ long-term growth strategy in the United States and enhances its current businesses. We initiate coverage on the stock of the Toronto Dominion Bank with a ‘Buy’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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