Retail will be the key driver to first quarter bank results due later this month, giving an advantage to Toronto Dominion Bank, says RBC Capital Markets analyst Andre-Philippe Hardy.
"In domestic retail divisions, on a year-over-year basis, we expect stronger wealth management revenues and robust growth in mortgages and consumer-related loans to more than offset higher loan losses," he said in a note to clients.
Mr. Hardy said TD Bank should continue to outperform its domestic peers with solid asset and revenue growth in Canada and the United States.
The bank's retail margins will expand in the first quarter, while sequential chargeoffs and loan loss provisions will stabilize, the analyst said.
He reiterated his Outperform rating and $80 price target, saying TD is a good name going into the quarter.