TD Bank Expects $1.1 Billion In Loan Losses From U.S. Retail Division
Toronto-Dominion Bank (TSX:TD) said it expects to record $1.1 billion in loan-loss provisions from its U.S. retail division in its fiscal second quarter as the impact of the coronavirus pandemic on the lender’s operations becomes clear.
The Toronto-based bank will have about $600 million of set-asides tied to U.S. credit cards that consist primarily of its retailer partners’ share of provisions for credit losses, Toronto-Dominion said in a statement. Those are fully offset through corporate non-interest expenses and won’t have an impact on earnings, the bank said. Its U.S. credit-card retail partners include Target Corp. (NYSE:TGT) and Nordstrom Inc (NYSE:JWN)
Canadian banks under international accounting standards will likely book larger loan-loss provisions in the second quarter. Toronto-Dominion, Canada’s second-largest lender by assets, is scheduled to report its quarterly results on May 28.