TD Bank signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. TD Bank Group says it expects to earn about 30 per cent less from its Charles Schwab Corp. holdings in its results next month than last year, as U.S. banks report earnings.THE CANADIAN PRESS/Andrew Lahodynskyj
TORONTO – TD Bank Group says it expects to earn about 30 per cent less from its Charles Schwab Corp. holdings in its results next month than last year, as U.S. banks report earnings.
TD says its holdings in Charles Schwab should translate to about $141 million in reported equity income for its first quarter of fiscal 2024.
Last year, the bank reported $285 million in net income from its investment in Schwab.
Canaccord analyst Matthew Lee says the Schwab results came in slightly higher than expected but that the financial firm’s outlook for the year disappointed.
Lee says key takeaways for the year from U.S. bank earnings in recent days are net income pressure, improved capital markets and continued credit challenges on commercial real estate loans.
He says BMO and RBC should benefit the most from improvements in U.S. capital markets, while TD will be most affected by softer net interest income.
This report by The Canadian Press was first published Jan. 18, 2024.
Companies in this story: (TSX:TD)
