The Toronto Dominion Bank Group (TD) published its results for the first quarter of 2024, ended January 31, 2024, on February 29. For the “Wealth Management and Insurance” sector, the net result remained the same.
The net income of this segment was $555 million in the first quarter of 2024, while it was $554 million in the same quarter of 2023 based on the adjusted amount.
The revenue growth was partially offset by higher insurance expenses, which reached $1.4 billion in the first quarter of 2024, an increase of 17% compared to the same period. quarter of 2023.
Expenses for claims incurred and related charges are recognized in expenses relating to insurance activities, and variations linked to the discounting of liabilities are recognized as financial income or insurance financial expenses in other income ( losses). Prior to the adoption of IFRS 17, these expenses were recognized in insurance claims and related expenses and non-interest expenses.
Products
Wealth management and insurance revenues reached $3.1 billion in the first quarter of 2024. This is an increase of $220 million, or 8%, compared to the same period in 2023. The company does not However, it does not provide separate data for the two parts of the segment on a quarterly basis.
For the first quarter of 2024, non-interest income was $2.9 billion, an increase of $218 million, or 8%, compared to the same period in 2023.
TD attributes this result to higher insurance premiums and increased fee-based account revenue in the wealth management business.
Assets under administration amounted to $576 billion as of January 31, 2024, an increase of $35 billion or 6% compared to assets under administration as of January 31, 2023. The 6% increase is the same for assets under management, which reached $479 billion at the end of the first quarter of 2024. In both cases, market appreciation enabled this result, according to the bank in its report to shareholders.
Primes
Gross insurance premiums written were $1.3 billion in the first quarter of 2024, an increase of $149 million or 13% compared to the same period last year.
Provision
TD’s net income was $2.8 billion in the first quarter of 2024, compared to $1.6 billion for the same period in 2023. This is a 79% increase in earnings. as presented.
The provision for credit losses, which amounted to $1 billion in the first quarter of 2024, is up $311 million, or 45%, compared to the same quarter in 2023.
In his message to shareholders, the president and CEO Bharat Masrani highlights the progress made thanks to the restructuring initiatives put in place last fall.
Bank failures
On November 16, 2023, the American administration announced the special contribution to be paid to the Federal Deposit Insurance Fund (FDIC) due to the protection of uninsured depositors in connection with the bank failures that occurred in the spring of 2023.
TD made a pre-tax assessment of $411 million (US$300 million), which is recorded in non-interest expense in the first quarter of 2024. An update from the FDIC will be issued in June 2024 , because on February 23, the American federal agency notified all subject institutions that the total losses were higher than the amount established in November 2023. TD expects an increase in the special assessment.
2024-03-04 15:55:43
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