UPDATE 1-TD Bank profit rises on strong retail lending
(Adds segment details, analyst and CFO comments)
By Cameron French
TORONTO May 22 (Reuters) - Toronto-Dominion Bank said on Thursday that its quarterly profit rose 16 percent as recent credit card and wealth management acquisitions boosted Canadian and U.S. retail lending.
Canada's second-largest bank said it had earned C$1.99 billion ($1.82 billion), or C$1.04 a share, in the second quarter ended April 30, compared with C$1.72 billion, or 89 Canadian cents a share, a year earlier.
Excluding a C$63 million charge for amortization of intangibles and other special items, the bank earned C$1.09 per share. That was ahead of analysts' expectations of C$1.02, according to Thomson Reuters I/B/E/S.
RBC Capital Markets analyst Darko Mihelic said the results had benefited from lower-than-expected loan-loss provisions. They fell to C$392 million from C$417 million, while he had expected them to rise to C$497 million.
"We view the quarter as strong," Mihelic said in a note. "However, at some point we would expect loan loss provisions to 'normalize' higher."
TD operates a 1,300-branch network on the U.S. East Coast in addition to its Canadian retail bank. It also owns about 40 percent of TD Ameritrade Holding Corp.
Canadian retail banking income rose 13 percent to C$1.33 billion as stronger business lending and the addition of the lucrative Aeroplan Visa credit card portfolio helped offset sluggish mortgage growth. Continued...