With the Royal Bank of Canada (RY) and the Bank of Nova Scotia (BNS) I already covered two Canadian banks, which are part of the Big Five Canadian Banks. In this article, I will cover another Canadian bank, which is belonging to that group - The Toronto-Dominion Bank (NYSE:TD).
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Following pretty much the same structure as always, I will start with a short description of the business and look at the recent quarterly and annual results. Following that, I will look at the growth potential of the bank as well as the risks the bank is facing right now. And as the bank is also interesting for dividend investors, we will also look at the dividend. And finally, we try to determine when to buy the stock - by calculating the intrinsic value and looking for good entry points.
Business Description
The Toronto-Dominion Bank is not only part of the Big Five Canadian Banks - it is the second biggest bank in Canada and the 6th biggest bank in North America (according to total assets as well as market capitalization). The company is serving more than 26 million customers around the globe and has more than 13 million active digital customers. The company is especially present in Canada and the United States and has more than 2,300 retail locations in North America. The company had about 89,000 full-time equivalent employees. In the second quarter of 2020, the Toronto-Dominion Bank had $1,674 billion in total assets and $1,078 billion in total deposits.
Total revenue in the second quarter was $10,528 million - reflecting a decrease of 0.8% compared to the previous quarter and reflecting an increase of 2.9% compared to the same quarter last year. Net interest income increased 10.0% compared to the same quarter last year, while non-interest income declined 6.6%. Earnings per share decreased from $1.61 in
