TD Bank is reporting flat results for the second quarter ended April 30.

On an operating cash basis, earnings per share for the second quarter were 84¢, in line with last year. Return on common equity for the quarter was 18.7%, down from 19.5% in the prior year. Net income for the quarter was $546 million, compared to $537 million the prior year.

“Strong performances by TD Canada Trust and TD Securities during the quarter provided solid results despite challenging markets,” said TD chairman and CEO Charlie Baillie. “While TD Waterhouse experienced a weaker quarter, overall our businesses adapted to changing market conditions while maintaining their focus on achieving scale, maintaining momentum, being where banking is going, and engaging in activities that are at least North American in scope.”

Looking toward the rest of the year, Baillie warned that growth may remain subdued. “As anticipated, economic growth has slowed in North America and market performance may continue to be less than hoped until the end of the year. However, there is still positive growth in our major markets,” said Baillie. “In particular, consumer spending and the housing market still have considerable momentum. We believe that we are well positioned to deal with the shifting market conditions and we will be using our resources and energies to create innovative solutions for whatever challenges might lie ahead.”

Total operating revenue for the quarter was $2.6 billion, down 7% from last year. As Baillie noted, retail banking had a good quarter, as did its wholesale investment business. “TD Securities had a solid quarter, as strong results from its derivative, fixed income, and foreign exchange businesses more than offset some reduction from new equity issuance, loan syndications, private equity and high yield bond financing,” Baillie said. “Despite challenging markets, TD Securities’ diversified mix of businesses has provided consistent earnings and a high return on equity.”

Discount brokerage suffered, as TD Waterhouse slumped sharply. TD Wealth Management also saw revenues and earnings decline due to challenging market conditions. This resulted in lower transaction volumes at TD Evergreen, and a smaller proportion of equities in assets under management.

“TD Mutual Funds led the industry with the top sales in Canada for January, February and March 2001. Thanks in large part to our multi-channel distribution approach and exceptional branch-based sales efforts, we were able to achieve $1.6 billion in new sales over that time,” Baillie said. He added that TD Quantitative Capital achieved solid asset growth of $2.3 billion during the quarter.