Toronto Dominion Bank Group (TD) released its results for the second quarter of 2024, ended April 30, 2024, on May 23. Net income for the Wealth Management & Insurance segment was up 19% year-over-year.

Net income for this segment was $621 million for the second quarter of 2024, compared with $524 for the same quarter of 2023.

According to the company's press release, “positive top-line momentum was partially offset by higher insurance service expenses.” These expenses reached $1.2 billion in the second quarter of 2024, up $130 million or 12% over the same quarter of 2023.

Products  

Wealth management and insurance revenues reached $3.1 billion in the second quarter of 2024. This is an increase of $313 million, or 11%, compared with the same period of 2023. The company no longer provides separate data for the two segments on a quarterly basis.

The bank attributes this result to higher fee-based and transaction revenue in the Wealth Management business. 

For the second quarter of 2024, non-interest income was $2.8 billion, up $267 million or 10% over the same quarter last year.

Assets under administration totaled $596 billion at April 30, 2024, up $47 billion or 9% compared with assets under administration at April 30, 2023. This result reflects market appreciation and growth in net assets, reports the company in its report to shareholders.

Assets under management, which reached $489 billion at the end of the second quarter of 2024, increased by $29 million or 6% year-over-year.

Premiums  

Gross insurance written premiums were $1.5 billion in the second quarter of 2024, up $140 million or 11% over the same period last year.

After the first six months of fiscal 2024, gross insurance written premiums totalled $2.8 billion, up $251 million or 10% compared to fiscal 2023.

Increased provision  

Net income attributable to TD common shareholders was $2.3 billion in the second quarter of 2024, compared with $3.1 billion in the same quarter of 2023. This is a decline in earnings of $722 million or 23%.

The provision for credit losses, at $1.1 billion in the second quarter of 2024, was up $472 million, or 79%, compared with the same quarter in 2024.

Among the significant events of the second quarter, the company reports having recorded a provision of $615 million, or US$450 million, relating to regulatory and enforcement investigations into the U.S. Bank Secrecy Act compliance program, aimed at combating money laundering.

Also of note were restructuring charges of $165 million, mainly related to severance, other employee-related costs and real estate optimization initiatives.

A further charge of $103 million (US$75 million) was recorded for the special assessment to the Federal Deposit Insurance Corporation (FDIC). An amount of $411 million (US$300 million) was recorded for the same purpose in the previous quarter.