Toronto-Dominion Bank beat analysts’ estimates on an increase in revenue driven by strength in both its capital markets unit and growth in loans and deposits in the lender’s domestic retail business.

The lender earned $2 a share on an adjusted basis in the fiscal first quarter, it said in a statement Thursday, ahead of the $1.94 average estimate of analysts in a Bloomberg survey. It reported total revenue of $13.7 billion for the three months through January, beating forecasts of $12.2 billion.

Toronto-Dominion, which acquired U.S. investment bank Cowen Inc. last March, joined rival Royal Bank of Canada in getting a boost from capital markets. Earlier this week, Royal Bank also reported results that beat analysts’ estimates as stronger-than-expected performance from capital markets and wealth management countered an increase in loan-loss provisions and higher expenses.

At Toronto-Dominion, provisions for credit losses totaled $1 billion, more than the $944.1 million analysts had forecast.

The Canadian lender recorded a charge of $411 million before taxes tied to a special assessment by the U.S. Federal Deposit Insurance Corp. related to bank failures. Royal Bank, Canadian Imperial Bank of Commerce and Bank of Montreal recorded similar charges for the quarter.

TD is facing a U.S. Department of Justice probe into deficiencies related to its anti-money-laundering practices that contributed to it scrapping its planned acquisition of Memphis-based First Horizon Corp. last year. It could face a fine of between US$500 million and US$1 billion, according to analysts’ estimates.

To help rein in expenses, the lender took a $363 million pre-tax restructuring charge in the fourth quarter and recorded an additional $291 million in the first quarter. 

But those savings will not fall to the bottom line either this year or in 2025 as the bank has committed to higher spending on its risk and control infrastructure. “It can reasonably be assumed that these investment needs are another ripple effect from the bank’s regulatory issues in the U.S.,” Bank of Nova Scotia analyst Meny Grauman wrote in a research report last week.