TD Bank Expects Lower Contribution from Charles Schwab Investment in 3Q

By Adriano Marchese

Toronto-Dominion Bank said Wednesday that it expects a lower contribution in its third quarter from its investment in Charles Schwab.

The Canadian financial institution--which has roughly a 13.5% stake in Schwab through the acquisition of TD Ameritrade by Schwab--said it expects around 182 million Canadian dollars, or $138.2 million, in net income from the investment.

Last year at this time, TD Bank reported income of C$268 million for its investment.

In its second quarter, Charles Schwab, a Westlake, Texas-based financial services company, posted profit of $1.294 billion, or 64 cents a share, compared with $1.793 billion, or 87 cents a share, in the same period a year earlier.

Profit, however, came in ahead of the 62 cents a share estimated by analysts polled by FactSet.

Excluding certain acquisition-related charges and amortization of acquired intangibles, adjusted equity in net income of an investment in Schwab will be C$228 million, TD Bank said Wednesday.

The bank is expected to release its third-quarter results on Aug. 24.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

July 19, 2023 07:01 ET (11:01 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.