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TD Bank Stock Slips as $3B Penalty Hits Profits
Key Takeaways
Shares of Toronto-Dominion Bank ( TD ) fell Thursday after the bank's fourth-quarter profits fell short of estimates, while it also suspended some of its mid-term financial growth targets after missing them in fiscal 2024.
TD Bank's revenue and net interest income (NII) beat estimates at C$ 15.51 billion (US$11.05 billion) and C$7.94 billion, respectively. Analysts had expected the figures to come in at C$14.72 billion and C$7.75 billion, according to estimates compiled by Visible Alpha.
The bank's profits , however, came in at C$3.64 billion, short of the C$4.00 billion analysts had expected.
TD Suspends Growth Goals
An investigation into TD's anti-money laundering (AML) policies concluded during the quarter . TD agreed to pay a fine of more than $3 billion and became the first U.S. bank to plead guilty to conspiring to commit money laundering.
TD said 2025 would be "a transition year" for the bank. The lender abstained from issuing guidance for the next fiscal year and said it would suspend medium-term growth goals related to earnings, return on equity , and operating leverage. The firm, as part of its agreement with federal prosecutors, had agreed in October to cap the growth of its U.S. business.
“TD faced challenges in 2024, but we have a strong Bank, with well-positioned businesses serving millions of customers," TD Bank COO Raymond Chun said. "Our AML remediation is our top priority, and we remain focused on strengthening our risk and controls to meet our obligations."
TD's U.S.-listed shares fell 6.7% Thursday. They have lost about 18% of their value this year.
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