TD Bank (TSX:TD) says its profits grew to $1.33 billion in the second quarter as revenues strengthened.
The earnings were equal to $1.46 per share, compared to $1.18 billion or $1.30 a share in the same period a year earlier. However, the results missed analyst expectations, with TD posting adjusted earnings per share of $1.59. Analysts polled by Thomson Reuters were expecting profits to be a penny higher per share.
Revenue increased to $5.12 billion from $4.77 billion.
Provisions for credit losses, or the money put aside for bad loans, were reduced to $343 million compared with $365 million a year ago.
"We believe the North American economic picture is continuing to improve, but that improvement is gradual and will still take some time," said president and CEO Ed Clark in a release.
"We remain confident that 2011 will be a very good year for the bank as we continue to deliver strong operating results and invest for future growth."
In its Canadian banking division net income grew 11 per cent to $847 million from $761 million as it experienced strong volume growth in certain areas including business loans and deposits as well as growth in personal deposits, mortgages and indirect lending.
"This was the second best quarter on record for Canadian personal and commercial banking, despite fewer days in the quarter and, as expected, some slowing in personal banking volume growth from the exceptional levels seen in 2010," said Tim Hockey, head of Canadian banking.
In the United States, personal and commercial banking profits rose 31 per cent to US$315 million from $241 million.
TD had steadily expanded its U.S. operations in recent years, up and down the East Coast.
It also owns about 40 per cent of TD Ameritrade (Nasdaq:AMTD), a discount brokerage based in the U.S. Midwest. The bank now has more than 1,000 branches throughout the Northeast, Mid-Atlantic, Florida and Washington D.C. area.
TD has also been pushing to grow its retail business in Canada by introducing Sunday hours are more than 300 retail branches across the country.
The bank recently said it was in advanced talks to sell its stake in Maple Leaf Sports and Entertainment to the Ontario Teachers' Pension Plan in a move that would make it easier for the pension fund to sell its stake in the company.