The Toronto-Dominion Bank (TD) reported net income of $3.7 billion for the first quarter of 2022, which ran from November 1, 2021 to January 31, 2022. This result is up 13.9 per cent or $456 million from the $3.3 billion in net income reported in Q1 2021.
“By segment, the increase in reported net income reflects an increase in U.S. Retail of $272 million and an increase in Canadian Retail of $217 million, partially offset by a decrease in the Corporate segment of $30 million and a decrease in Wholesale Banking of $3 million,” TD says.
Insurance and wealth management
In its Canadian Retail segment alone, which includes its insurance and wealth management businesses, the company reported net income of $2.2 billion in the first quarter of 2022, compared with $2 billion in Q1 2021. The increase of 10.6 per cent or $217 million “reflects record revenue and lower provisions for credit losses (PCL), partially offset by higher non-interest expenses,” TD explains.
Two of the three businesses in this segment gained ground:
- Personal and Commercial Banking recorded net income of $1.6 billion, up 14.8 per cent or $209 million;
- Insurance reported net income of $179 million in Q1 2022 compared with $164 million in Q1 2022, for an increase of 9.1 per cent or $15 million.
The third business in this segment, Wealth Management, reported net income of $457 million in Q1 2022, down from $464 million in Q1 2021. The decrease amounts to 1.5 per cent or $7 million.
Non-interest income
Overall non-interest income for Canadian Retail was $3.6 billion in the first quarter of 2022, compared with $3.4 billion in Q1 2021. This growth of 7.9 per cent or $266 million reflects “higher fee-based revenue in the banking and wealth businesses, and higher insurance volumes,” TD says.
This result, however, was “partially offset by a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in insurance claims, and lower transaction revenue in the wealth business.”
Non-interest income in the Insurance business alone was $1.3 billion in the first quarter of 2022, compared with $1.2 billion in Q1 2021. It thus climbed 7.2 per cent or $89 million.
Premiums
Gross originated insurance premiums were $1.1 billion in the first quarter of 2022. This increase amounts to 4.2 per cent or $45 million.
Claims
Insurance claims and related expenses were $756 million in Q1 2022, versus $780 million in Q1 2021. This downturn of 3.1 per cent or $24 million reflects “a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in non-interest income, partially offset by more severe weather-related events.”
