Toronto Dominion Bank Group (TD) released its results on Feb. 29 for the first quarter of 2024, ended Jan. 31. Net income for the Wealth Management and Insurance segment was flat. 

Net income for this segment was $555 million for Q1 2024, whereas it stood at $554 million for the same quarter of 2023, on an adjusted basis. 

Sales growth was partly offset by higher expenses from insurance operations, which amounted to $1.4 billion in the first quarter of 2024, up 17 per cent for the same quarter of 2023.

Claims incurred and related expenses are recognized in expenses from insurance operations, and changes related to the discounting of liabilities are recognized as insurance financial income or expense in other income (loss). Prior to the adoption of IFRS 17, these expenses were recognized in insurance claims and related expenses and non-interest expenses.

Revenues  

Wealth management and insurance revenues reached $3.1 billion in the first quarter of 2024. This is an increase of $220 million, or 8 per cent, compared with the same period in 2023. However, the company does not provide separate data for the two segments on a quarterly basis. 

For the first quarter of 2024, non-interest income was $2.9 billion, up $218 million or 8 per cent compared with the same period in 2023.

TD attributes this result to higher insurance premiums and increased fee-based account revenues in wealth management activities.

Assets under administration totaled $576 billion at Jan. 31, 2024, up $35 billion or 6 per cent compared with assets under administration at Jan. 31, 2023. Assets under management, which reached $479 billion at the end of the first quarter of 2024, also increased by 6 per cent. In both cases, market appreciation made this result possible, according to the bank in its report to shareholders. 

Premiums 

Gross written insurance premiums were $1.3 billion in the first quarter of 2024, up $149 million or 13 per cent over the same period last year.

Provision  

TD's net income was $2.8 billion for the first quarter of 2024, compared with $1.6 billion for the same period in 2023. This is a 79 per cent increase in reported earnings.

The provision for credit losses, at $1 billion in the first quarter of 2024, is up by $311 million, or 45 per cent, compared with the same quarter in 2024.

In his message to shareholders, President and CEO Bharat Masrani highlights the progress made thanks to the restructuring initiatives put in place last autumn.

Bank failures  

On Nov. 16, 2023, the U.S. government announced a special assessment to be paid to the Federal Deposit Insurance Fund (FDIC) to protect uninsured depositors in connection with bank failures that occurred in the spring of 2023.

TD paid a pre-tax assessment of $411 million (US$300 million), which is recorded in non-interest expense in the first quarter of 2024. An update from the FDIC will be issued in June 2024. February 23, the U.S. federal agency notified all subject institutions that total losses were higher than the amount established in November 2023. TD expects an increase in the special assessment.