For TD Bank, mortgage loan income posted a year-over-year increase for the fifth consecutive quarter. With customer demand increasing and mortgage originations outpacing the same period in 2020, TD Bank recorded a net mortgage loan growth of 4%. TD Bank's net interest margin (NIM) improved by 6 basis points and total adjusted revenue was up 7% year-over-year. One of the drivers of this strong performance was the Bank's focus on providing customers with digital services, such as mobile banking and other online solutions, which accounted for over 80% of total transactions during the quarter.
National Bank of Canada reported its fourth quarter results were largely in line with expectations. Its NIM expanded by 6 basis points when compared to the same quarter last year and was largely driven by personal and commercial banking. Revenue increased slightly due to higher loan and deposit volumes, while non-interest expenses were up 7%. The Bank's residential mortgage portfolio posted a year-on-year growth rate of 5%, while its commercial mortgage portfolio grew at a rate of 8%.
In summary, both TD Bank and National Bank of Canada performed well in their respective fourth quarters of 2021. TD Bank experienced an increase in mortgage loan income and net mortgage loan growth of 4%, while also emphasizing digital services such as mobile banking and other online solutions. Meanwhile, National Bank of Canada recorded a higher loan and deposit volumes, resulting in higher revenue and a slight expansion of its NIM. Both banks also saw notable growth in their residential and commercial mortgage portfolios. This indicates that in spite of the economic hardship brought about by the pandemic, both TD Bank and National Bank of Canada remain strong and resilient. Moving forward, they should maintain their focus on providing innovative digital banking solutions and further leveraging their mortgage portfolios to continue to achieve success.
This article was contributed on Aug 10, 2023