TD Bank quarterly profit jumps on higher rates boost

(Reuters) -Canada’s TD Bank posted a surge in fourth-quarter profit on Thursday as gains from higher interest rates boosted its personal and commercial business and helped offset weakness in underwriting and capital markets.

The lender set aside C$617 million in loan loss provisions, compared to a release of C$123 million a year earlier.

TD Bank joined peers Royal Bank of Canada, Bank of Nova Scotia and National Bank of Canada (OTC:) to mark higher funds this year to prepare for potential loan losses as worries of an economic downturn grow.

The bank’s personal and commercial business posted an 11% increase in net income, reflecting higher margins and strong volume growth. U.S. retail jumped 12%.

TD Bank’s results came as a sharp contrast to peers that reported lower quarterly profits for the three months ended Oct as a dearth of deals hurt their capital markets businesses.

Canada’s second-largest lender said net income, excluding one-off items, rose to C$4.07 billion, or C$2.18 per share, from C$3.87 billion, or C$2.09 per share, a year earlier.

Analysts had expected C$2.09 a share, according to Refinitiv data.

Overall net profit was C$6.67 billion, or C$3.62 per share, compared with C$3.78 billion, or C$2.04 per share.

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