TD Bank Financial Group is reporting a loss for the fourth quarter ended October 3, citing challenges in the bank’s corporate loan portfolio.

The bank posted an operating loss of $42 million, or 10¢ a share, for the quarter. That compares with profit of $521 million, or 78¢, in the prior-year period.

TD said loan loss provisions in the fourth-quarter stood at $950 million, up from $190 million in the year-ago period.

Fourth-quarter revenue rose to $1.4 billion from $1.3 billion, while return on equity was negative 2.1%, down from positive 16.8% in the prior-year period.

“Following on a very difficult third quarter, the fourth proved equally challenging. Our credit challenges in the corporate loan portfolio were compounded by a rapid deterioration in the U.S. utilities sector towards the end of the year,” said Charles Baillie, TD Bank Financial Group chairman and CEO.

TD Canada Trust reported record earnings for the quarter, with a fourth quarter performance of $287 million in operating cash earnings or 4% growth over the same period last year.

In its wealth management division, the bank said operating cash basis net income for the fourth quarter was $22 million, an increase of $3 million or 16% over the same prior year period and $2 million or 10% growth over the third quarter. Net income grew 16% over the prior year.

Assets under management totalled $112 billion at the end of the fourth quarter, down $10 billion or 8.2% from the third quarter, and 5.9% year-over-year. Assets under administration totalled $234 billion at the end of the fourth quarter.