UPDATE 1-TD Bank profit falls 10 percent on insurance losses
* Insurance charge pulls profit lower
* Earnings before special items tops analyst estimates
* Bank hikes dividend by 5 percent
By Cameron French
TORONTO, Aug 29 (Reuters) - Toronto-Dominion Bank's quarterly profit fell 10 percent as Canada's No. 2 lender took C$418 million in insurance-related charges, but the result topped estimates and the bank hiked its dividend by 5 percent.
TD, the final large Canadian bank to report results for the period, warned last month it would take insurance charges for higher provisions in its auto lending unit as well as losses from floods in Alberta and Ontario during the summer.
The bank earned C$1.53 billion, or C$1.58 a share, in the third quarter ended July 31, compared with C$1.70 billion, or C$1.78 a share, a year earlier.
Excluding a C$59 million charge for the amortization of intangibles, a C$70 million gain on the change in fair value of derivatives hedging, and other items, the profit was C$1.65 a share. Analysts on average had expected C$1.55, according to Thomson Reuters I/B/E/S.
A bright spot was loan growth at TD's retail banking business, which has about 2,400 branches in Canada and the United States. Continued...