{"id":133718,"date":"2024-12-05T21:17:48","date_gmt":"2024-12-05T14:17:48","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=133718"},"modified":"2024-12-05T21:17:48","modified_gmt":"2024-12-05T14:17:48","slug":"td-suspends-growth-guidance-in-wake-of-historic-us-settlement","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=133718","title":{"rendered":"TD Suspends Growth Guidance in Wake of Historic US Settlement"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->(Bloomberg) &#8212; Toronto-Dominion Bank suspended its medium-term financial targets amid a review of company strategy as the incoming chief executive officer seeks to move the lender past a historic money-laundering settlement with US authorities.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Most Read from Bloomberg<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Canada\u2019s No. 2 bank is \u201cis currently undertaking a strategic review of organic opportunities and priorities, productivity and efficiency initiatives, and capital allocation alternatives,\u201d it said in a statement Thursday. During the review, Toronto-Dominion is suspending medium-term financial targets for earnings growth, return on equity and operating leverage.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->The company has been operating under the overhang of sweeping US investigations for well over a year, and finally resolved those cases in October after pleading guilty to failing to prevent money laundering by drug cartels and other criminals. It also agreed to pay almost $3.1 billion in fines and other penalties and faces a cap on its American assets.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Toronto-Dominion earned C$1.72 per share on an adjusted basis in its fiscal fourth quarter, according to the statement, missing the C$1.83 average estimate of analysts in a Bloomberg survey.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Net income at the company\u2019s US retail unit totaled C$863 million ($614 million) for the three months through October, down 32% and less than analysts expected, during what the bank called a \u201cchallenging quarter\u201d for the business.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->\u2018Irrelevant\u2019 Results<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->\u201cTD\u2019s earnings in the fourth quarter were irrelevant to its outlook,\u201d Jefferies Financial Group Inc. analyst John Aiken said in a note to clients, pointing to Toronto-Dominion comments that \u201cit will be challenging to generate earnings growth\u201d in fiscal 2025. \u201cWe do not believe that the fourth quarter will provide any valuation relief and investors will need to be patient for a catalyst to release the pent-up value in TD.\u201d<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->The bank is in the midst of reducing its US assets by 10% to remain in compliance with the American asset cap and said reported net income in the US retail division includes the impact of that balance-sheet restructuring. Expenses in the US division were up on charges related to the money-laundering resolution.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->In the firm\u2019s capital-markets division, adjusted net income totaled C$299 million, missing the C$379 million average of analysts\u2019 estimates. But that was up 68% from a year earlier, when it had higher expenses related to its integration of US investment bank Cowen Inc.<!-- HTML_TAG_END --><\/p>\n<p><button class=\"secondary-btn fin-size-large readmore-button rounded   yf-15mk0m\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Toronto-Dominion\u2019s provisions for credit losses totaled C$1.11 billion, in line with analysts\u2019 forecast. Earlier Thursday, Bank of Montreal reported C$1.52 billion in provisions for potentially bad loans in the period, far exceeding estimates, with analysts speculating the lender could be taking large charges now to put the credit issues that have plagued it all year behind it.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->\u2018Restore Morale\u2019<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Just weeks before the money-laundering resolution, Toronto-Dominion announced plans for Chief Executive Officer Bharat Masrani to retire next April. He\u2019ll be replaced by Raymond Chun, who spent three decades across the bank\u2019s operations.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->\u201cWe believe that Mr. Chun has to restore morale in addition to revamping the bank\u2019s strategy,\u201d RBC Capital Markets analyst Darko Mihelic wrote in a report last month.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->With the US asset cap in place indefinitely until lifted by American banking regulators, Toronto-Dominion\u2019s stock is trading at a steep valuation discount to its peers \u2014 something likely to continue for the foreseeable future, Mihelic said.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Toronto-Dominion last month pre-announced higher-than-normal catastrophe-loss claims in its insurance business, saying it expects that figure to total C$388 million after reinsurance and before taxes in the quarter. The bank missed analysts\u2019 estimates on adjusted earnings in the fiscal third quarter largely because of a jump in insurance claims owing to extreme weather and wildfires.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Most Read from Bloomberg Businessweek<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->\u00a92024 Bloomberg L.P.<!-- HTML_TAG_END --><\/p>\n<\/div><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/td-misses-weak-us-performance-123600204.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; Toronto-Dominion Bank suspended its medium-term financial targets amid a review of company strategy as the incoming chief executive officer seeks to move the lender past a historic money-laundering &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=133718\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-133718","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=133718"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/133718\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=133718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=133718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=133718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}