Toronto-Dominion Bank reported almost flat fourth-quarter profits on Thursday after loan-loss provisions and losses at TD Waterhouse offset strong positive contributions from its merged TD Canada Trust retail banking unit.

TD reported operating cash earnings, which exclude restructuring costs, in the fourth quarter ended October 31 were $521 million, or 79¢ a share, compared with $512 million, or 80¢ a share a year ago.

“Continued contributions from TD Canada Trust and TD Securities resulted in another solid quarter for the bank, despite an environment that continues to pose operating challenges,” said Charles Baillie, TD’s chairman and CEO.

The bank said it expects the economy to turn around significantly in the second half of 2002, at which time TD sees its growth to be quite robust. In the meantime, there is a “good deal of economic uncertainty” in the short term.

During the quarter, TD completed its integration of Canada Trust. The retail banking arm added $277 million in cash earnings in the fourth quarter, or 53% of the bank’s overall quarterly results.

TD Securities recorded a restructuring charge of $130 million, designed to reduce expenses in line with anticipated revenues.

Discount brokerage pulled down earnings after a sharp drop in customer stock trading. The firm reported its results earlier in the week.

For the year, the bank recorded profit on an operating cash basis of $2.16 billion, or $3.31 a share, compared with $2.02 billion, or $3.16 a share last year

Fourth quarter revenues were $2.6 billion, down from $2.7 billion last year. For the fiscal year, total revenues stood at $10.7 billion, up 5.2% from $10.2 billion last year.

Return on equity slid to 16.8% on a cash basis from 18% in the quarter, while annual return on equity was unchanged at 18%.

TD set aside $190 million through provision for credit losses, bringing the full-year provision for credit losses to $620 million. That excludes an increase of $300 million in the general allowance recorded earlier in the year.