Businessman hand showing financial report on table

TD Bank Group beat expectations as its second-quarter profit more than doubled compared with a year ago and the bank recovered some of its provisions for credit losses.

TD said Thursday it earned $3.7 billion or $1.99 per diluted share for the quarter ended April 30, up from a profit of $1.5 billion or 80 cents per share a year ago.

The improvement came as TD posted a $377-million recovery of credit losses for its latest quarter compared with a provision for credit losses of $3.2 billion a year ago at the start of the pandemic.

TD CEO Bharat Masrani said TD reported strong results in the second quarter, reflecting the underlying strength of its diversified businesses, improving economic conditions and its prudent approach to managing risk.

“While we are encouraged by the progress being made on vaccinations, Covid-19 continues to be a factor in our lives and our focus remains on the safety of our people and on supporting the evolving needs of our customers and clients,” Masrani said.

Revenue at TD totalled $10.2 billion, down from $10.5 billion in the same quarter last year.

On an adjusted basis, TD said it earned $2.04 per diluted share in its latest quarter, up from 85 cents per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.76 per share, according to financial data firm Refinitiv.

TD said its Canadian retail business earned $2.18 billion, up from $1.17 billion a year ago, helped by a recovery of credit losses and record results in its wealth and insurance operations.

In the U.S., TD said its retail business, which includes its investment in Charles Schwab Corp., earned $1.32 billion, up from $336 million in the same quarter last year.

TD’s wholesale banking group, which includes its capital markets and investment banking operations, earned $383 million in its latest quarter, up from $209 million a year ago, as a recovery of credit losses was partially offset by lower revenue and higher non-interest expenses.