Where are the Bank analysts ? Have they suddenly all gone blind ?TD bank is reporting flat profits because of a 39% Y/0Y drop in Provisions For Loan Losses from $557 million in Q32009 to $339 million in Q32010. Provisions For Loan Losses lower profits.How can Provisions For Loan Losses be reported as being lower when Gross Impaired Loans are 72% higher than the same quater last year ? TD reported Total Q32010 Gross Impaired Loans at $3,357 million up $1,410 or 72% higher than the $1,947 million reported for Q32009. Compared to the previous Q22010 quarter Gross Impaired Loans at $3,032 million are up $325 million or 11% to $3,357 million in Q32010.TD needs to explain why Provisions are down 39% while Gross Impaired Loans are up 72% indicating a much worse credit situation on a Year over Year basis.
The rise in Impaired Loans can mean big trouble for TD's profits in the coming quarters of 2010 and into 2010.Shareholders would be wise to sell now.
How many more "quarters" are you expecting in 2010? (before we start 2010 all over again) How is that short position going?
What I can't discern from the release is where the impared loans originate from; perhaps from the newly acquired US operations, perhaps not.However, it would seem that the FDIC guarantees for loans losses (up to 80%) as part of the acquisition terms would account for the acceptance per se, of the increase y/o/y #s.JMHO
Sounds like a very well thought out logical explanation.