Retail boosts TD’S healthy Q2 profits

TORONTO — Stronger results from its retail operations in Canada and the U. S. helped drive profit up nearly 21 per cent in the second quarter, but TD Bank cautioned Thursday about the ability to maintain that pace for the remainder of the year.

The bank had a profit of $ 1.69 billion before adjustments, compared with $ 1.4 billion a year earlier. Earnings per share improved to $ 1.78 from $ 1.50, before adjustments.

After adjustments, the bank’s net income was up 14 per cent to $ 1.73 billion. Adjusted earnings per diluted share was $ 1.82, four cents higher than analysts expected, according to a poll by Thomson Reuters.

TD CEO Ed Clark said despite the growth, he expects slowing loan growth, persistently low interest rates and regulatory headwinds to continue to affect growth in the rest of the year.

The company has taken in adjusted earnings of $ 3.5 billion, or $ 3.68 in earnings per share in the first six months of 2012.

“We expect similar adjusted earnings and EPS numbers in the second half, which implies a lower growth rate for the balance of the year,” Clark told analysts on a conference call.

“We continue to work hard to stay in the seven to 10 per cent earnings growth increase range we’ve indicated before, despite increasing headwinds.”