TD Bank retires ‘inaccurate’ Penny Arcade coin-counting machines

 

TD Bank’s (formally known as Toronto-Dominion Bank, TSE:TD, Mkt cap 106.56B, P/E 13.33, Div/yield 0.55/3.84, EPS 4.30, Shares 1.85B) TD Bank NA has confirmed it is to take its much-maligned Penny Arcade coin-counting machines out of service for good, Reuters reports.

TD Bank retires Penny Arcade

TD Bank retires ‘inaccurate’ Penny Arcade coin-counting machines

Lawsuits are pending against TD Bank on behalf of customers who had used the machines, which contributed to the bank taking them out of service in early April for retesting.

The machines were expected to be brought back once performance requirements were met, but the bank has now decided against reintroducing them.

“We have determined that it is difficult to ensure a consistently great experience for our customers,” Michael Rhodes, TD Bank’s Head of Consumer Bank, said in a statement. “We will continue to assess the Penny experience and intend to appropriately address customer impact.”

In one of the pending lawsuits, filed in New York state court in Manhattan last month, New Yorker Jeffrey Feinman said the machines once gave him a receipt for US$25.44 when he deposited US$26 worth of coins, and US$30.05 when he deposited US$31.

In the case’s legal documents, it is claimed the Penny Arcades counted 29 billion coins in 2012. The service was free for account holders and charged an 8% fee for everyone else.

Florida attorney Michael Criden, who filed a class action over the issue last month in U.S. District Court in Miami, said he expected TD Bank to “right this wrong,” claiming that it has not only impacted commercial customers, but also “those children that brought in their ‘lemonade stand’ money to deposit in their savings accounts.”

TD Bank were not prepared to comment on the pending litigation when requested by Reuters.

The TD Bank AKA the Toronto-Dominion Bank operates as a bank in North America. The Bank conducts its business through segments, such as Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. Canadian Retail provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses, including credit cards, auto finance, wealth and insurance businesses. U.S. Retail consists of the Bank’s retail and commercial banking operations operating under the brand TD Bank, America’s Most Convenient Bank, and wealth management services in the United States. Wholesale Banking provides a range of capital markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, and meeting the daily trading, funding and investment needs of its clients. The Bank is also an online financial services firm.
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TD Bank Sees Profit Hit Off Back Of Restructuring Charge

TD Bank, formally known as Toronto-Dominion Bank (TSE:TD, Mkt cap 100.67B, P/E 13.30, Div/yield 0.51/3.75, EPS 4.09, Shares 1.85B) said it will be “fitter and faster” going forward after posting fiscal second-quarter profit that fell 6.5% on a year-over-year basis as a restructuring charge took its toll.

TD Bank fitter and faster

TD Bank said it will be “fitter and faster”

As Bloomberg News reports, the $228 million charge related to cost-cutting in the U.S. and Canada forced net income for the period ended April 30 down to $1.86 billion, or 97 cents a share, from $1.99 billion, or $1.04, a year earlier.

Excluding extraordinary items, adjusted earnings were $1.14 a share, surpassing the $1.11 average estimate of 14 analysts surveyed by Bloomberg. Analysts polled by Thomson Reuters were also expecting a similar return.

The Toronto-based lender pointed to cost-cutting measures such as “process redesign and business restructuring” in the quarter, as well as retail branch and real estate “optimization”.

This was evident in the firm’s headcount for the quarter, which stood at 330 employers fewer than the first quarters, with reductions in both Canadian and U.S. retail banking.

“The organizational and productivity changes we are making will enable us to become fitter and faster, to better meet our customers’ expectations, and adapt to the low-growth economic environment,” chief executive officer Bharat Masrani said in the statement.

Meanwhile, revenue climbed up 4.4% to $7.76 billion in the 12-month period, exceeding analysts’ estimates.

Broken down further, Toronto-Dominion’s U.S. operations reported adjusted profit of $626 million, up from $548 million the year previous. Canadian retail adjusted profit, which comprises wealth management and insurance, increased 6.4% to $1.44 billion, whilst wholesale-banking adjusted earnings jumped up 19% to $246 million.

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Canada Stockwatch – TD Bank Suggests It’s Now Less Opposed To Taking Risks

Canada Stockwatch – TD Bank, formally known as Toronto-Dominion Bank (TSE:TD, Mkt cap 100.21B, P/E 13.04, Div/yield 0.51/3.77, EPS 4.15, Shares 1.85B) has a reputation for being one of Canada’s most conservative banks, but the arrival of Bharat Masrani as chief executive might see it shed its risk-averse approach, analysts have suggested.

Canada Stockwatch TD Bank Risk

Canada Stockwatch – TD Bank Suggests It’s Now Less Opposed To Taking Risks

As the Financial Post reports, rival banks Royal Bank of Canada and Bank of Nova Scotia have both made significant moves recently, with the former announcing a $5.4 billion deal to buy Los Angeles-based City National Corp. Bank of Nova Scotia, meanwhile, took a fourth-quarter hit of $451 million as it set about restructuring.

Whilst TD Bank appears to be taking more tentative steps towards change, analysts are noticing a definite widening of its risk appetite, which Masrani suggests is indicative of the industry.

“We are in the risk-taking business, that’s what we do for a living,” said the bank’s former chief risk officer in his first annual meeting as TD’s CEO.

Peter Routledge, a financial services analyst at National Bank Financial, told the newspaper how Masrani has already had an influence on the bank’s corporate lending book since his appointment in November.

Routledge suggested that a bit more risk could yield welcome returns for Canada’s second-largest bank, adding that he’d like to see even more risk implemented in its strategy going forward.

Masrani hinted that this could happen sooner rather than later, with TD’s head of capital markets, Bob Dorrance, being encouraged to expand the TD Securities and wholesale banking franchise as much as possible, which could generate returns in the region of 15% to 20%.

However, Masrani cautioned: “Taking on bad risk is unforgiving for a long time.”
Canada Stockwatch – TD Bank’s net income grew by 1.56%, year over year, to $1.09 per share during the most recently completed quarter.

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TD Bank Reports Profit Rise

TD Bank will raise its quarterly dividend to 51 cents per share from 47 cents, a 9% hike.


TD Bank, formally known as Toronto-Dominion Bank (TSE:TD, Mkt cap 101.33B, P/E 13.25, Div/yield 0.51/3.72, EPS 4.14, Shares 1.85B) said it will prioritise organic growth ahead of acquisitions in 2015, after announcing moderate year-on-year profit growth last week.

TD Bank Reports Profit RiseAs the Financial Post reports, Canada's second-largest lender said that its net income rose to $2.06 billion, or $1.09 per share, in the first quarter ended Jan. 31, from $2.04 billion, or $1.07 per share, a year earlier.

Excluding one-time items, TD Bank earned $1.12 per share, which falls in line with the analyst average estimate, according to Thomson Reuters I/B/E/S.

Prior to the results, investors had feared that the sharp price drop in oil prices would have a damaging effect on the profits of Canadian banks, but Colleen Johnston, TD Bank's chief financial officer, says it has so far proved itself immune to the drop.

"We're really not seeing any direct effects to this point, but keeping a very close eye on this because needless to say, low oil prices are a negative for Canada overall," she told Reuters.

As a result, the lender has been able to raise its quarterly dividend to 51 cents per share from 47 cents, which represents a 9% hike.

Net income from the firm's Canadian retail business climbed 20% to $1.45 billion, while that from its U.S. retail arm shot up 27% to $625 million.

Wholesale banking, however, did not fare quite as well, falling 16.5% to $192 million in the first quarter ended Jan. 31, which has been attributed to lower fee-based revenue on reduced volumes.

TD Bank, therefore, will take a fairly considered approach to growth in 2015, Johnston explained. She said: "We don't feel that we're strategically disadvantaged in any of our businesses where we have to go and acquire something. If something came along that was really attractive financially and strategically we would consider it."

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Stockwatch – Toronto-Dominion Bank Falls Short Of Expectations In Q4

Stockwatch – Toronto-Dominion Bank’s net income rose to $1.75 billion in the fourth quarter.

Stockwatch – Toronto-Dominion Bank (TSE:TD, Mkt cap 96.87B, P/E 12.91, Div/yield 0.47/3.58, EPS 4.06, Shares 1.85B) has released its fourth quarter profit figures, which don’t quite live up to expectations, despite seeing its revenue and earnings rise.

Stockwatch Toronto-Dominion Bank net income $1.75 billion fourth quarter

Stockwatch – Toronto-Dominion Bank’s net income rose to $1.75 billion in the fourth quarter.

As Reuters reports, analysts had expected earnings (excluding special items) of $1.05 per share but the figure only came in at 98 cents per share.
However, Canada’s second-largest lender reported that its net income rose to $1.75 billion, or 91 cents per share, in the fourth quarter ended Oct. 31, from $1.62 billion, or 84 cents per share, in the same period a year ago.
The bank’s chief executive, Bharat Masrani, said he was content with the results, adding that he was particularly pleased to be ending the year with total adjusted earnings of $8.1 billion.
“Results for the year reflect good earnings from each of our businesses, driven by organic growth, strong fundamentals, and good results from recent acquisitions,” he continued.
Masrani cautioned, however, that he expects the operating environment to be more challenging in 2015, due to slow economic growth in Canada and sustained low interest rates, leading the bank to focus on organic growth.
In an interview with Reuters, Colleen Johnston, TD Bank‘s chief financial officer, said she remained optimistic that the bank can press on via this route.
“We are very focused on organic growth and we know we have lots of opportunities there. That’s not to rule out M&A (mergers and acquisitions), but we don’t have anything coming to fruition at this point,” she explained.

The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.