TD Bank Group reported a second-quarter profit of $3.35 billion, down from $3.81 billion in the same quarter last year as it set aside more money for bad loans.
The bank says the profit amounted to $1.72 per diluted share for the quarter ended April 30, down from a profit of $2.07 per diluted share a year earlier.
Revenue totalled $12.37 billion, up from $11.26 billion in its second quarter last year.
TD says its provisions for credit losses amounted to $599 million, up from $27 million a year ago.
On an adjusted basis, TD says it earned $1.94 per diluted share in its latest quarter, down from an adjusted profit of $2.02 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $2.07 per share, according to estimates compiled by financial markets data firm Refinitiv.
TD called off its US$13.4-billion deal to acquire U.S. bank First Horizon Corp. earlier this month, citing regulatory uncertainty around the takeover.
In its report Thursday, TD said that in light of that decision and the deterioration in the macroeconomic environment, the bank does not expect to meet its medium-term adjusted earnings per share growth target range of seven to 10 per cent.
"As we enter the second half of 2023, TD's businesses are strong, and our customer and client relationships continue to expand," TD chief executive Bharat Masrani said in a statement.
"We are successfully operating in an unpredictable operating environment, supported by robust capital and liquidity and the best bankers in the industry."
TD said its Canadian personal and commercial banking business earned $1.63 billion, up from $1.57 billion a year ago, while its U.S. retail operations earned $1.41 billion, up from $1.37 billion in the same quarter last year.
Meanwhile, TD's wealth management and insurance business earned $563 million, down from $668 million a year ago.
TD's wholesale banking arm earned $150 million, down from $359 million in the same quarter last year.
This report by The Canadian Press was first published May 25, 2023.
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