Toronto-Dominion Bank (The): Update to credit analysis

Toronto-Dominion Bank (The): Q3 2023 financial results: Higher PCL, elevated expenses and US margin compression offset solid revenue growth - Issuer Comment – 2023/08/25 – US$ 200.00 – ...This report was republished on 25 August 2023 with a corrected sequential earnings decline for the Wealth Management and Insurance segment....

Toronto-Dominion Bank (The): Q2 2023 financial results: Acquisition and integration-related charges and higher PCL offset solid revenue growth - Issuer Comment – 2023/05/26 – US$ 200.00 – ...Effective 1 February 2023, the regulatory minimum TLAC risk-based and leverage ratios is 24.5% and 7.25%, respectively, reflecting OSFI's increase in the domestic stability buffer (DSB) to 3.0%. For prior periods, the regulatory minimum TLAC risk-based and leverage ratios was 24.0% and 6.75%, respectively, including the DSB of 2.5% which was in effect since 31 October 2021. Source: Moody's Investors Service, Company Financials...

Moody's assigns Aa2 rating to TD's Fixed-to-Floating Rate Notes due May 1, 2024 - Rating Action – 2023/05/04 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Toronto-Dominion Bank (The): Q1 2023 financial results: Notable margin expansion in Canadian P&C and US Retail offsets higher PCL and expenses - Issuer Comment – 2023/03/02 – US$ 200.00 – ...Regulatory minimum TLAC ratio was 24.0%, including the DSB of 2.5% which was in effect since 31 October 2021. Effective 1 February 2023, the regulatory minimum TLAC ratio is 24.5% reflecting OSFI's increase in the DSB to 3.0%. Source: Moody's Investors Service, company financials...

Toronto-Dominion Bank (The): Q4 2022 financial results: Strong loan growth and margin expansion mitigate higher provisions and challenging markets - Issuer Comment – 2022/12/02 – US$ 200.00 – ...Q4 2021 regulatory minimum TLAC ratio was 22.5%, including the Domestic Stability Buffer (DSB) of 1.0% at that time; Q3 and Q4 2022 regulatory minimum TLAC ratio was 24.0%, including the current DSB of 2.5%. Source: Moody's Investors Service, company financials...

Toronto-Dominion Bank (The): Q3 2022 financial results: Strong loan growth and margin expansion mitigates higher provisions and challenging markets - Issuer Comment – 2022/08/26 – US$ 200.00 – ...This report was republished on 1 September 2022 with a corrected net loss amount resulting from TD's de-designating of hedge accounting for certain interest rate swaps related to the bank's announced acquisition of First Horizon...

Toronto-Dominion Bank (The): TD acquisition of Cowen Inc. would expand its US investment banking business, a credit negative - Issuer Comment – 2022/08/03 – US$ 200.00 – ...) announced it had signed a definitive agreement to acquire Cowen Inc. (Cowen, Ba3 Corporate Family Rating review for upgrade), a US independent dealer, for approximately $1.3 billion in cash. While this transaction will allow TD to accelerate its strategic US growth plans by providing the bank with new capabilities and increased depth in key business lines, it increases its involvement in capital markets activities, which we view as credit negative because these activities are generally higher-risk than TD's other business activities. TD expects the transaction to close in the first calendar quarter of 2023 subject to approval from Cowen's stockholders as well as customary regulatory approvals. On a proforma basis, based on our calculations, TD's overall revenue contribution from Wholesale Banking will increase to 15% from 11% for year-end 2021, not including the impact from the bank's pending acquisition of First Horizon Corporation (First Horizon, A3/Baa3 review for upgrade, baa2...

Toronto-Dominion Bank (The): Q2 2022 financial results: Loan growth and margin expansion drive solid quarterly performance - Issuer Comment – 2022/05/26 – US$ 200.00 – ...In Q2 2022, The Toronto-Dominion Bank (TD) reported net income of CAD3,811 million, generating a strong annualized return on risk weighted assets (RWAs) of 3.2%, down three basis points (bps) from last year, as net income increased 3% (Exhibit 1) and RWAs grew 7.5%. Return on equity slightly decreased to 16.4% from 16.7% over the same period. Earnings growth this quarter was driven by strong loan growth and higher fee- based revenue, partially offset by higher provisions for credit losses (PCL), and increased non-interest expenses and insurance claims. Pre-tax pre-provision income was up 16.2% year over year, reflecting strong growth in the Canadian Personal and Commercial Banking, and US Retail segments. Overall, these credit-neutral results were broadly in line with our expectations. Net interest income(NII) increased 9.3% year over year, reflecting robust loan and deposit growth in the personal and commercial banking segments, as well as higher trading net interest income, partially...

Toronto-Dominion Bank (The): Update following ratings affirmation - Credit Opinion – 2022/03/08 – US$ 250.00 – ...Toronto-Dominion Bank (The)'s (TD) very high ratings are supported by its strong domestic retail franchise and retail-oriented business mix, which generate stable and recurring profits. This credit strength results from TD's leading market share positions in a number of personal & commercial (P&C) financial services products, where it typically has first or second market share positions. TD is the most retail-oriented of its Canadian peers, with approximately 90% of earnings over the past 5 years coming from its retail businesses (combined Canadian personal & commercial, wealth management, insurance and US personal & commercial, excluding its corporate segment). TD's creditors also benefit from the bank's disciplined, retail oriented management culture, which has yielded exceptional risk-adjusted returns over time, which we recognize with a one-notch positive qualitative adjustment for Corporate Behavior in our scorecard. In recent years, TD has increased its exposure to unsecured Canadian...

Toronto-Dominion Bank (The): Q1 2022 financial results: lower provisions and solid loan growth led to higher earnings - Issuer Comment – 2022/03/03 – US$ 200.00 – ...In Q1 2022, The Toronto-Dominion Bank (TD) reported net income of CAD3,733 million, generating an annualized return on risk weighted assets (RWAs) of 3.14%, up 35 basis points (bps) from last year as net income increased 14% (Exhibit 1) and RWA growth was 1%. Return on equity increased to 15.3% from 14.3%, over the same period. Earnings growth in the quarter was driven by lower provisions for credit losses (PCL), which declined 77% year over year to CAD72 million due to a more favorable economic outlook and improved credit conditions. Pre-tax pre-provision income was up 7%, year over year on strong revenue growth. These quarterly results were credit-neutral and broadly in line with our expectations. Net interest income increased 5% as loans rose 5%, particularly in residential mortgages. Non-interest income increased 4% on higher fee based revenue in TD's wealth management and banking segments as well as increased insurance volumes. In Wholesale Banking revenue increased 3% on higher loan...