TD resilient despite U.S. scandal

Profit of $2.6B 'demonstrates the underlying earning power' of financial institution, analyst says

- ANA PEREIRA

TD Bank's financial results were largely driven by stronger provisions for credit losses.

Canada’s TD Bank CEO Bharat Masrani is fighting to repair the bank’s image as it faces an unprecedented money-laundering scandal in the U.S. that sparked fears among investors of a worst-case scenario.

Addressing analysts in an earnings conference call Thursday morning, the message from top executives was clear: the bank’s performance remained resilient despite economic headwinds and the reputational crisis.

“The reports you hear, what you read, does not reflect who we are, our values, and what the bank stands for,” Masrani asserted. “We are in the process of fixing it and we will fix it. We are making all the right investments and hiring the right professionals to get us there.”

TD Bank delivered financial results that beat analysts’ expectations in the second quarter.