TD Bank (NYSE:TD) experienced a decline in net income, reporting $2.96 billion during the third quarter due to heightened credit losses and decreased earnings within its U.S. retail division.
On a modified basis, the bank generated $3.7 billion in earnings, marking a two percent decrease compared to the same timeframe last year. This equates to $1.99 per diluted share. This value has decreased from the previous year’s $2.09 per diluted share, failing to meet the projected analyst consensus of $2.03 per share.
During the period ending on July 31, provisions set aside for credit losses reached $766 million, reflecting a significant increase from the $351 million recorded in the previous year.
Furthermore, the bank faced a $306 million expense linked to the termination of the proposed First Horizon transaction.
TD also declared its plan to repurchase up to 4.9 percent of its outstanding shares, signifying a threefold augmentation from its previous buyback initiative.
According to Barclays analyst John Aiken, this buyback endeavor is anticipated to counterbalance any disappointment that shareholders might experience in response to the quarterly outcomes.
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