TD Bank Group’s Canadian retail business has posted net income of C$1.44bn for the first quarter of 2015, up 20% from C$1.2bn over the same quarter last year.
The bank’s adjusted net income for the quarter was $1.44bn, an increase of 8% compared with $1.34bn in the first quarter last year.
The rise was primarily driven by good loan and deposit volume growth, good credit management, the full quarter impact of Aeroplan and higher insurance earnings, partially offset by higher expenses.
For the quarter, Canadian retail revenue was C$4.88bn, an increase of 6% from C$4.62bn in the year ago quarter derived from Canadian personal and commercial banking businesses, including credit cards, auto finance, wealth and insurance businesses.
Net interest income was up 4% to C$2.43bn compared with C$2.34bn the first quarter last year driven by good loan and deposit volume growth and the full quarter impact of Aeroplan, partially offset by lower margins.
The personal banking business generated good average lending volume growth of C$13.2bn, or 5%.
The bank’s Canadian retail business said that its assets under administration increased 14%, and assets under management increased 15% compared with first quarter of last year, driven primarily by market appreciation and strong new asset growth.
The bank’s US retail bank posted net income of US$457m for the quarter, an increase of 15% compared with US$398m the same quarter last year primarily due to lower PCL and lower non-interest expenses, partially offset by a decrease in other non-interest income.
US Retail net income for the quarter was US$536m, which included net income of US$457m from the U.S. Retail Bank and US$79m from TD’s investment in TD Ameritrade.
Revenue at US retail bank was US$1.9bn, a decrease of 1% compared with US$1.93bn in the first quarter last year due to lower other non-interest income resulting from lower gains on sales of securities.
Average loan volumes increased 3%, compared with the prior quarter due to 4% growth in business loans and 1% growth in personal loans, while Average deposit volumes increased 1% driven by 2% growth in business deposit volume and 2% growth in personal deposit volume.
Group president and CEO Bharat Masrani said: "We are pleased with our start to 2015, with adjusted earnings of $2.1 billion, up 5% from the same quarter last year. Our results reflect strong retail earnings on both sides of the border and strong fundamentals."
Group head, US Banking Mike Pedersen said: "Our organic growth has been driven by customer acquisition, strong deposit and lending volume, continued benefit from good asset quality, and active productivity management. We are making good progress in deepening customer relationships, strengthening our distribution strategy and improving efficiency."