May 27, 2010 / 11:05 AM / 8 years ago

UPDATE 1-TD Bank Q2 profit up as loan losses improve

* Q2 EPS C$1.30 vs C$0.59 yr-ago

* Q2 adjusted EPS C$1.36

* Just below expectations of C$1.38 EPS

TORONTO, May 27 (Reuters) - Toronto-Dominion Bank (TD.TO) said on Thursday its profit rose in the second quarter as loan losses fell to their lowest level in six quarters.

Canada’s second-largest bank said net income was C$1.18 billion ($1.12 billion), or C$1.30 a share, in the second quarter ended April 30. That compares to C$545 million, or 59 Canadian cents a share, in the same period a year earlier.

When one-time items are excluded, the bank said adjusted income C$1.36 a share.

Analysts on average were expected a per share profit of C$1.38, according to Thomson Reuters I/B/E/S.

TD said provisions for credit losses, or the amount of money the bank set aside to cover bad loans, fell to C$365 million in the quarter from C$772 million a year earlier.

Tier 1 capital, a key measure of the capital adequacy of a bank, was 12.0 percent, at the low end of Canadian peers but well above most global rivals.

In April, TD completed a small FDIC-assisted acquisition to bolster its U.S. retail banking operation which is concentrated on the U.S. east coast. The deal for three Florida banks, which was not expected to be material to earnings, included Riverside National Bank of Florida.

In May, TD bought another troubled U.S. lender, South Financial Group, in an unassisted deal that expanded its presence in Florida and added a foothold in North and South Carolina. ($1=$1.05 Canadian) (Reporting by Andrea Hopkins; Editing by Derek Caney)

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