Topic: How To Invest

The Successful Investor Hotline – Friday, May 28, 2021

Article Excerpt

TORONTO-DOMINION BANK, $87.07, Toronto symbol TD, is a buy. The bank continues to pull back funds it previously set aside to cover potential bad loans as a result of COVID-19. In its fiscal 2021 second quarter, ended April 30, 2021, TD posted a $377 million recovery of credit provisions compared to a charge of $3.22 billion a year earlier. As a result, earnings in the latest quarter soared 142.3%, to $3.71 billion from $1.53 billion. Due to more shares outstanding, per-share earnings rose 140.0%, to $2.04 from $0.85. Those figures exclude unusual items such as costs to integrate recent acquisitions. On that basis, the latest earnings beat the consensus estimate of $1.76 a share. Earnings from Canadian retail banking operations (56% of the total) jumped 86.2% due to the lower loan-loss provisions and strong gains from its wealth management and insurance businesses. Earnings at its U.S. retail division (34%) soared 291.7%, mainly due to the lower credit provisions. As well, TD’s Wholesale division (10%) saw its…