TD splits stock, hikes dividend by 1 cent

Toronto-Dominion Bankhad $1.622 billion of net income in the fourth quarter, up from last year but below analyst estimates.

TD's net income for the three months ended Oct. 31 amounted to $1.68 per common share, up from $1.66 a year earlier when overall net income was $1.597 billion under standard accounting.

On an adjusted basis, TD earned $1.90 per share, up from $1.83 in the fourth quarter of 2012.

Despite the year-over-year improvements, Toronto-Dominion's quarterly results fell short of analyst estimates.

According to data compiled by Thomson Reuters, analysts were looking for about $1.77 billion of net income, $1.91 per share under standard accounting and $1.99 per share of adjusted earnings.

Most of TD's major units showed increases but net income from wholesale banking fell by 61 per cent to $122 million from a year earlier, due to lower security gains and higher non-interest expenses.

TD's main Canadian banking arm had $914 million of net income in the quarter, up from $806 million a year earlier, while adjusted net income was $948 million up 14 per cent from a year earlier.

The increase in adjusted earnings at the Canadian banking unit was primarily driven by loan and deposit volume growth, favourable credit performance, and effective cost management, the bank said.

TD also announced it will issue a one-for-one stock dividend to common shareholders on Jan. 31. The quarterly cash dividend will also rise by one cent to shareholders of record as of Jan. 6. The new shares issued in the stock split won't be eligible for the January cash payout, which will be 86 cents per share.