TORONTO ( TheStreet) -- Toronto-Dominion Bank's ( RBS) continuing expansion is paying off for the big Canadian bank despite the continued sluggish economy in the U.S. Toronto-Dominion, intent on significantly growing its market share in the U.S. banking markets, said Thursday that third-quarter profit surged 29%, fueled by strong retail banking results in Canada and continued expansion in the U.S. Toronto-Dominion recorded third-quarter profit of CA$1.18 billion (U.S. $1.12 billion), or CA$1.29 (U.S. $1.23) a share, it said in its latest fiscal quarterly earnings release. That compares to Toronto-Dominion's profit of CA$912 million (U.S. $868 million), or CA$1.01 a share (U.S. 96 cents), in the year-earlier quarter. The Canadian bank's fiscal third quarter ended on July 31. "Our third quarter results really tell the growth story of our retail businesses on both sides of the border," Toronto-Dominion's president and CEO Ed Clark said in the earnings release. "Canadian personal and commercial Banking
operations posted another record quarter - its third in a row - and our U.S. personal and commercial banking operations also reported the highest level of adjusted earnings since we entered this market." Toronto-Dominion's U.S. personal and commercial banking operations, under the subset TD Bank, recorded a profit of $271 million in for the quarter. On an adjusted basis, the segment's profit rose 30% from the year-earlier period, to $276 million, the company said. TD Bank's revenue rose 17% driven by "broad gains across the business, including deposit and loan growth, supported by an increase in retail fees," while the provision for U.S. credit losses dropped 23%, to $126 million, according to the release. "TD Bank had a very good quarter despite the uncertainty that continues to linger in the U.S. economy," said TD Bank's CEO Bharat Masrani said in the earnings release. "We remain pleased with the pace of our organic growth as we continue to lend to our customers. In fact, since the downturn started in 2007, we've grown our lending by 20%."
Toronto-Dominion Bank has made no secret that it wants to expand its banking operations in the U.S. The Canadian bank has been on an acquisition hunt in the U.S. over the past six years, starting with the former Banknorth of Portland, Maine and then Commerce Bancorp of Cherry Hill, N.J. Toronto-Dominion management has previously made reference to the fact that it is looking for a "Maine-to-Florida" presence. According to its website, TD Bank has $160 billion in assets and approximately 1,100 branches in the U.S. TD Bank agreed in May to acquire The South Financial Group ( TSFG) , a struggling regional bank located mainly in Florida and the Carolinas. TD Bank took no assistance from the Federal Deposit Insurance Corp., however it did get assistance from the U.S. Treasury, which agreed to sell South Financial's TARP-related preferred stock and warrants to TD at a discount. The deal is expected to close shortly after the Sept. 28 shareholder meeting, TD Bank said. During the quarter, it also bought two smaller Florida-based banks. TD Bank is employing the successful Commerce business plan, which used the tagline "America's Most Convenient Bank" and was a deposit-gathering machine, as its main banking platform in the states. Toronto-Dominion Bank shares were most recently trading up 0.5% on the New York Stock Exchange to $68.85. --Written by Laurie Kulikowski in New York. To contact the writer of this article, click here: Laurie Kulikowski. >To submit a news tip, send an email to: firstname.lastname@example.org.