The Toronto-Dominion Bank Group (TD) reported net income of $3.8 billion for the second quarter of 2022, which ran from February 1 to April 30. This reflects growth of 3.1 per cent or $116 million from the $3.7 billion in net income reported in Q2 2021.

For its Canadian Retail segment alone, which includes TD Insurance and Wealth, the company reported net income of $2.2 billion in the second quarter of 2022. This increase of 2.5 per cent or $54 million reflects “strong revenue, partially offset by higher non-interest expenses, insurance claims, and provisions for credit losses (PCL).”

Only one of the segment’s three sub-sectors grew: Canadian Personal and Commercial Bank reported net income of $1.6 billion, up 8.6 per cent or $124 million. The other two sub-sectors declined:

• Wealth Management: This segment reported net income of $421 million in Q2 2022, compared with $490 million in Q2 2021, for a decrease of 14.1 per cent or $69 million.

• Insurance: This segment reported net income of $247 million in Q2 2022, versus $248 million in Q2 2021, equal to a decline of 0.4 per cent or $1 million.

Non-interest income  

Overall non-interest income for Canadian Retail was $3.5 billion in the second quarter of 2022, compared with $3.2 billion in Q2 2021. This increase of 9 per cent or $286 million reflects "prior year premium rebates for customers in the insurance business, and higher fee-based revenue in the banking and wealth businesses,” TD says.

However, this growth was “partially offset by lower transaction revenue in the wealth business, and a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in insurance claims.”

Insurance non-interest income alone was $1.3 billion in the second quarter of 2022, compared with $1.1 billion in Q2 2021. This increase amounts to 23.8 per cent or $259 million.

Claims and related expenses 

Insurance claims and related expenses were $592 million in Q2 2022, up from $441 million in Q2 2021. This increase of 34.2 per cent or $151 million reflects “higher current year claims, partially offset by the favourable impact of a higher discount rate which resulted in a similar decrease in non-interest income.”

Premiums  

Gross originated insurance premiums were $1.3 billion in the second quarter of 2022, compared with $1 billion in Q2 2021. This represents an increase of 20.9 per cent or $220 million.