[Moo Brief] TD Bank Group takes $2.6B provision in Q3: Is it still a buy?

However, recent severe weather events have led to an uptick in insurance claims, affecting the profitability of both the insurance and wealth management divisions. The reported loss amounted to C$181 million (equivalent to $133 million), marking the bank's first quarterly net loss in nearly two decades since 2003.

Despite some positive momentum in recent weeks, TD Bank's stock has declined by 7.7% since the start of January and now trades close to $79 CAD, underperforming the TSX banking index, which has seen an 8.2% increase. On Thursday, TD's shares dropped around 3% in the Toronto market. Currently, TD Bank has nearly C$2tn ($1.5tn) of assets, with the US retail bank generating about a quarter of its Canadian counterpart. Yet, TD Bank reported strong adjusted quarterly earnings of $2.05 per share, surpassing the estimated $1.73 and highlighting the bank's robust, diversified business model and its ability to navigate through difficult periods.

"TD continues to work constructively with our regulators and law enforcement towards the resolution of our U.S. AML matters and looks forward to bringing additional clarity to our shareholders, clients, and other stakeholders," Chief Executive Bharat Masrani said in the press release. He said the bank's remediation program is "well underway." Scotiabank analyst Meny Grauman said he sees TD as a potential investment opportunity with good value, considering that "the market is now ascribing negative value to its U.S. business." TD executives have said they keep faith in the U.S. business. Masrani informed investors that the division has significant growth opportunities, noting the U.S. customer base is three times larger than Canada's.

TD Bank currently has a dividend yield of 5.13%, which is at the higher end of its historical yield range. If that's not enough to entice you to invest, consider that this yield is roughly double the 2.5% yield you would get from an average bank, as benchmarked against the SPDR S&P Bank ETF. You might consider adding the high-yield TD Bank to your portfolio as a similar investment in a bank facing what could be temporary issues.