Canadian Underwriter

Insurance growth unable to stop TD Financial slide

November 28, 2002   by Canadian Underwriter

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TD Bank Financial Group has ended its fiscal year on a sour note, reporting a yearend loss of $160 million or $0.25 per share, compared with earnings of $1.3 billion, or $2.05 per share, last year.
Much of the loss stems from beleaguered stock markets, with TD chair and CEO A. Charles Baillie noting, “our credit challenges in the corporate loan portfolio were compounded by a rapid deterioration in the U.S. utilities sector towards the end of the year. Overall, our performance was unsatisfactory, and our financial results confirm that it has been a disappointing year for our shareholders.”
One bright spot is the company’s p&c operation, TD Meloche Monnex, which contributed positively to revenue growth. Year-over-year insurance revenues increased 25% or $20 million.
“Real estate secured lending, deposits and home and auto insurance offered through TD Meloche Monnex were the main contributors to revenue growth, partly offset by a two basis point decline in the margin on average earning assets,” states a TD press release.

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