Toronto-Dominion Bank said its profits fell by half as the amount of money it set aside to cover bad loans rose by 400 per cent, continuing a trend seen at other lenders this quarter.
TD, the last of the big Canadian banks to report earnings this week, announced a profit of $1.5 billion in the three months up to the end of April on Thursday. That’s down from $3.1 billion a year ago.
The biggest reason for the profit drop-off is that TD, like the other big banks, set aside far more money to cover loans that may go bad because of the economic impact of COVID-19. Provisions for credit losses came in at $3.2 billion during the quarter, well up from $633 million the year before.
“COVID-19 has impacted the health and financial well-being of our customers and colleagues in very personal and unprecedented ways,” CEO Bharat Masrani said. “Our thoughts are with those most deeply affected, and our focus is on helping them overcome the significant challenges they are facing.”
Despite the profit drop, the bank maintained its dividend at 79 cents per share.
More to come