TORONTO - Toronto-Dominion Bank (NYSE:TSX:TD) reported fourth-quarter earnings that fell short of analyst expectations, sending shares down 3.5% in premarket trading on Thursday.
The Canadian banking giant posted adjusted earnings per share of C$1.72 for the quarter ended October 31, missing the analyst consensus estimate of C$1.83. Revenue came in at C$15.51 billion, surpassing expectations of C$12.71 billion and rising 33% YoY.
TD's adjusted net income fell 8% YoY to C$3.21 billion, impacted by higher provisions for credit losses and increased expenses. The bank's Canadian Personal and Commercial Banking segment was a bright spot, with net income rising 9% to C$1.82 billion on strong revenue growth.
"Despite a challenging quarter, we are pleased with the Bank's underlying fundamentals, which were reflected in our revenue growth," said Bharat Masrani, Group President and CEO of TD Bank Group.
However, the U.S. Retail Bank segment saw adjusted net income decline 12% to US$689 million, reflecting higher credit losses and expenses. TD also took a C$311 million charge related to restructuring its U.S. balance sheet.
Looking ahead, TD warned that earnings growth will be challenging in fiscal 2025 as it navigates a "transition year" and invests in risk management and control infrastructure. The bank suspended its medium-term financial targets and plans to provide updated goals in the second half of 2025.
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