second-quarter profit beat analysts’ estimates on a boost in capital markets even as profit fell 22 per cent from the same quarter last year, weighed down by costs related to the U.S. investigation into the lender’s anti-money laundering practices.
as a result of a lengthy U.S. regulatory and law enforcement investigation, the bank said it earned $2.04 per share. That edged out the $1.85 per share analysts expected, according to S&P Capital IQ. TD expects to incur fines or other penalties stemming from probes by the U.S. Department of Justice and other agencies related to its anti-money-laundering practices. The discussions with three U.S. regulators and the Department of Justice are ongoing, and the bank anticipates further penalties.
Separately, The Globe reported Wednesday that Canada’s banking regulator, the Office of the Superintendent of Financial Institutions,TD is the first major Canadian bank to report earnings for the second quarter. The rest of the Big Six banksIn the quarter, TD set aside $1.07-billion in provisions for credit losses – the funds banks set aside to cover loans that may default.