TD Bank didn’t pop like the others

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TD is on the Dividends Bull list. TD rose nicely over the last 3 months but dropped a little after their earnings report, something about quality of earnings, whereas Royal and especially CIBC rose after theirs. Any insights on this?

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Asked on May 28, 2021 8:16 pm
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I wouldn't worry too much about this - the company beat on earnings, but the concern was that some of it came from PCLs in which it posted a recovery (not a loss). I believe it was the only bank to post a recovery in this area and not a loss. This is why some believe earnings were positively inflated. It also posted flat loan growth in the US so that was also a concern in terms of growth prospects.

In is important to note, ALL banks reported big decreases in PCLs - it'll be interesting to see how it plays out next quarter but overall, 1 quarter for TD Bank is absolutely nothing to worry about. As you mentioned, It rose quite nicely over the past few months and it even rebounded a little on Friday/.

Mat

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Posted by Mathieu Litalien
Answered on May 29, 2021 7:50 am