TD Bank Fiscal 3rd-quarter Profit Down 8.5 Percent

ROB GILLIES

TORONTO (AP) — Toronto-Dominion Bank, North America's sixth largest bank by branches, reported a decline in third quarter profit on Thursday but easily beat expectations.

The Toronto-based bank earned $912 million Canadian (US$834 million), or $1.01 Canadian (US$92 cents) per share, for the quarter ended July 31, down from a year-earlier profit of $997 million Canadian, or $1.21 Canadian per share.

But stripping out one-time items, TD said its adjusted earnings improved to $1.3 billion Canadian (US$1.18 billion), or $1.47 Canadian (US$1.34) per share, compared with $1.1 billion Canadian, or $1.35 per share Canadian, reported a year ago. Analysts expected the bank to earn $1.23 per share.

TD CEO Ed Clark said the results exceeded his expectations and he credited an improved economic outlook to concerted action by central banks and governments as well as the resilience of the Canadian resale housing market.

There has been no crippling mortgage meltdown or banking crisis north of the border where TD is centered and where the financial sector is dominated by five large banks.