TD Bank Stock Slips as $3B Penalty Hits Profits | Global News Avenue

Toronto-Dominion Bank stock (TDThe bank fell on Thursday as its fourth-quarter profit missed expectations, while it also suspended some of its mid-term financial growth targets after missing its target for fiscal 2024.

TD Bank income and Net Interest Income (NII) Exceeded expectations Canadian dollar15.51 billion (USD 11.05 billion) and CAD 7.94 billion respectively. Analysts had expected the figures to be C$14.72 billion and C$7.75 billion, respectively, according to estimates compiled by Visible Alpha.

Bank’s profitHowever, its revenue of C$3.64 billion was below analysts’ expectations of C$4 billion.

TD Bank suspends growth targets

one investigation TD’s Anti-Money Laundering (AML) Policy end of quarter. TD Bank agreed to pay more than $3 billion in fines and became the first U.S. bank to plead guilty to conspiracy to commit money laundering.

TD Bank said 2025 will be a “transition year” for the bank. The bank gave up on issuing guidance for the next financial year and said it would suspend its earnings-related medium-term growth targets, return on equityand operating leverage. The company agreed in October to limit the growth of its U.S. operations as part of a deal with federal prosecutors.

“TD Bank faces challenges in 2024, but we have a strong bank with well-positioned businesses serving millions of customers,” TD Bank chief operating officer Spring Raymond said. “Anti-money laundering remediation is our top priority and we remain focused on strengthening risks and controls to meet our obligations.”

TD’s U.S.-listed shares fell 6.7% on Thursday. They have lost about 18% of their value this year.