TD Bank profit falls on hit from higher bad loan provisions, economic uncertainty
TD Bank signage is pictured in the financial district in Toronto on Sept. 8, 2023. (Andrew Lahodynskyj / The Canadian Press)
TD Bank reported a fall in second-quarter profit on Thursday, as the Canadian lender stockpiled money to cover for potential bad loans in an uncertain economic environment.
The results from the country's second-biggest bank offer a glimpse into the impact of the tariff chaos on the Canadian economy. Trade uncertainty is expected to result in higher credit losses and weaker loan growth as sentiment takes a hit from the changing outlook.
In the second quarter, TD's provision for credit losses jumped to $1.34 billion from $1.07 billion a year earlier.
'TD delivered strong results this quarter, with robust trading and fee income in our markets-driven businesses as well as deposit and loan growth in Canadian Personal and Commercial Banking,' CEO Raymond Chun said in a statement.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber, Reuters
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