Toronto-Dominion Bank (TD Bank) has determined that its US Retail banking business may record a provision for credit losses (PCL) of nearly CDN$1.1bn ($790m) due to the Covid-19 pandemic.
The bank expects the figure to reflect in its second-quarter financial results ended 30 April, which is expected to be released on 28 May 2020, according to its earnings call report.
The PCL amount will be set aside as part of the bank’s efforts to mitigate the spread of the virus.
Additionally, the Canada-based lender also expects to record PCL charges of nearly CDN$600m ($400m) related to its corporate business.
The bank, however, noted that the losses in the corporate segment consist mainly of retailer partners’ share of PCL for its US strategic card portfolio.
In its earnings call report, the bank said: “The retailer partners’ share of revenues and provisions for credit losses recorded in the corporate segment is fully offset through corporate non-interest expenses and will result in no impact to the bank earnings in the second quarter.”
The TD Bank group serves more than 26 million customers across three key business segments including Canadian Retail, US Retail and Wholesale Banking.
TD Bank also operates as an online financial services company and has onboarded more than 13 million active online and mobile customers.
As of 31 January 2020, the group has reported CDN$1.5trn ($1.07trn) in assets.