# TD Bank & Royal Bank Quarterly results



## Square Root (Jan 30, 2010)

TD reported excellent results this AM. Cdn banking up 11%, And wealth and US banking also strong. Dividend up 6% . If you read the press you would think things look bad but if the reporters knew what they were doing they would be analysts and make 10 times the money, I guess. RY doesn't look as good but div up 6% also. Gee I love these investments.


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## Jungle (Feb 17, 2010)

When I found out about RY increasing dividend again, I suddenly was in a good mood. I called my wife and told her we got another raise today!! We'll see how the markets react- but I am long term holder. 

6/13 stocks have raised dividned for us this year already and we are only done two months. 

I love this game of investing!!


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## humble_pie (Jun 7, 2009)

square root what is the point of that crack at the media. You might as well say that the concert first violin, the surgeon & the high school principal are all no-good bums & wasters because they don't earn as much as a securities analyst.

as for news reports this am, so far i've only glanced at the globe. TD & RY stories report mixed results.

td's personal & commercial banking may be up in canada, but how much longer would anyone expect those ever-increasing-ever-higher charges to drive growth in canadian market, which is already fairly small on a global scale.

meanwhile ry reports lukewarm figs.

all banks to date this quarter reporting dramatically lower capital markets.

let us hope the sheeple will not be blinded by the dividend increases.


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## doctrine (Sep 30, 2011)

Dividend increases are great news, but all of the banks will likely be cheaper than today at some point in the next 12 months, so don't feel rushed to buy necessarily.


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## Square Root (Jan 30, 2010)

My point about the media is that they always want to report the negative aspects of bank results. If you read the headlines you would have put a sell order in before the markets opened. They report on financial matters but don't really understand them. They want to sound like analysts but lack the experience and knowledge required. I think they believe that negative stories sell more newspapers but unfortunately this also encourages that great Canadian passtime of Bankbashing.


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## Square Root (Jan 30, 2010)

@humble. I acknowlege that I am a little excited about the results today. I don't think I am a sheep and don't believe I am blinded. I agree that now may not be the time to buy more bank shares and they do fluctuate in price over time and will probably be cheaper at some point. However, I do believe that they have been excellent long term investments and I see no reason to believe this will not continue for the forseeable future. For many people they could form the foundation for a satisfactory retirement.


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## Cal (Jun 17, 2009)

http://www.theglobeandmail.com/glob...al-markets-litigation-reserve/article2354950/

Funny how BMO Q earnings were up, no divi increase. TD, RY Q earnings are down, divi increase.

SR - unfortunately bad news does sell papers better than good news.


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## Square Root (Jan 30, 2010)

Cal said:


> http://www.theglobeandmail.com/glob...al-markets-litigation-reserve/article2354950/
> 
> Funny how BMO Q earnings were up, no divi increase. TD, RY Q earnings are down, divi increase.
> 
> SR - unfortunately bad news does sell papers better than good news.


Payout ratios are key. Also, the underlying earnings at TD and RY were very strong despite some special items. Also, the newspapers report earnings under generally accepted internatonal accounting standards, whereas most investors and analysts use "cash earnings adjusted for unusual items".


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## humble_pie (Jun 7, 2009)

hello media critics

out of curiosity, i went back to this morning's articles in both globe & mail & financial post.

i was looking for distortion, sensationalism, evidence that lies were being sold to naiive or unsuspecting media, indications that ignorant journos did not or could not understand the facts they were reporting.

i chose roybank stories. I take it we're all agreed that when royal bank announces its annual figures, that is a bona fide news event & the media have no choice but to report it.

in every case i found the articles to be objective, effective, detached, thorough, workmanlike & comprehensive. Hard though i looked, i found no sign of irresponsible or ignorant reportage.

http://www.theglobeandmail.com/globe-investor/rbc-profit-slips-beats-forecasts/article2354941/

http://business.financialpost.com/2012/03/01/rbc-reports-lower-profit-hikes-dividend/

the headlines themselves were models of restraint & accuracy.

the globe headline:

_RBC profit slips, beats forecasts_

a related globe story today was headlined:

_RBC, TD feel slowdown from 2011 in capital markets_

the financial post headline:

_RBC reports lower profit, hikes dividend_

what i sometimes find is that people bash the media. But when one asks for an example, they are hard put to find one. Often they point to an analyst report or an anonymous internet twitter - neither of these are mainstream media - which has annoyed them.

out of the handful of articles today reporting on td & ry in the globe or in finpost, can anyone place on the table an example of sensationalized, ignorant, incompetent or distorted journalism.
.


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## Dmoney (Apr 28, 2011)

Generally the media will only report factual numbers, and will in general not make any inference about results.

A journalist might write: Royal Bank reported quarterly earnings that were down 25% from the same period last year.

Whereas an analyst might write: Royal Bank reported quarterly earnings that were 25% above our forecast and beat consensus. Excluding the one-time negative effect of X, quarterly earnings increased X% from the year-ago period and free cash flow grew by X% from the previous year. 

Two people working with the exact same publicly available info, but the journalist doesn't get the intracacies of the company the way an analyst does. Not a knock on journalists, but if they did nothing for 10 years but follow 10-15 companies 365 days a year, their articles would be more useful to investors.


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## Square Root (Jan 30, 2010)

The main article in the G&M today on the RY and TD results really missed the point. The story focused on negative aspects such as capital markets declines which at TD only represent a little over 10% of total earnings. I realize that it is more at RY. They talked about slowing asset growth but didn't mention the excellent growth to date. They didn't mention the remarkable success of TD USA overcoming the Durbin ammendment. They missed the superb cost effectiveness (record effeciency ratios) of both banks. The remarkable resiliency of both bank's retail franchises gets lost in the story. The fact that TDCT earned an ROE of 44.9% in the quarter was not reported. i realize the headlines aren't chosen by the reporters but to say,in the case of TD, that earnings are down really misses the substance of what happened. I could go on and on. Luckily analysts and investors generally disregard press reports.
Newspapers, and the G&M is not the worst example, always look for the negative or controversial aspect of bank stories. This would appear to be what Canadians like to read.


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## humble_pie (Jun 7, 2009)

square root may i submit that the globe article on td results yesterday did address, in competent detail, the points which you complain are missing.

journo tara perkins wrote:

_' TD’s core Canadian personal and commercial banking division posted its highest profit to date, despite the headwinds posed by low interest rates. It earned $826-million, as Canadians continued to cope, by and large, with their debt payments.

“Looking ahead we feel we’re positioned for steady earnings growth in the mid-to-high single digits,” stated Tim Hockey, the head of TD’s Canadian banking division.

TD’s wealth and insurance unit brought in $294-million, up 14 per cent from a year ago, despite lower trading revenue. The increase was the result of asset growth in the wealth business and new business on the insurance side.

U.S. personal and commercial banking reported profits of $165-million (U.S.), up 6 per cent from the same time last year. '_


but the reporting period was 1 nov/10 to 31 oct/11 & this is now. I've already wondered upthread where canadian retail & banking growth is expected to come from, considering canada's small population & stagnant economy along with strong consumer resistance to rising bank fees.

is it your desire, SQ, that in the case of td you want the media to omit the fact that earnings are down while focusing instead on rosy sidebar stories like resiliency of the retail network, etc.

but earnings were indeed down & i felt the globe handled this excellently in the first few sentences of perkins' article. Globe stated the earnings setback was the result of a drop in capital markets plus a substantial one-time charge for td's participation in the massive rothstein fraud in florida.

again, i see no evidence in the media reportage yesterday for either td or roybank of the sensationalism & distortion which you allege.
.


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## Square Root (Jan 30, 2010)

i guess it's a case of glass half full vs half empty.


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## humble_pie (Jun 7, 2009)

SQ it would be fair to say, would it not, that you dislike unjustifiable attacks on banks as much as i dislike unjustifiable attacks on the media.

plus you'd never want me to start in on the analysts ...

craven handmaidens & cowardly prisoners of their underwriting divisions. 

terrified to pen a negative word for fear their investment banking confreres won't capture the business.

24 hours before SNC released its gloomy news 3 days ago, every tweeting analyst in the land was targetting north of $56. Meanwhile every single media had been outing the dark libyan story for months on end. Scandalous.
.


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## Square Root (Jan 30, 2010)

Let's agree to disagree.


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