close-up of the top of td canada trust tower building, toronto

TD Bank Group reported its provisions for credit losses soared to nearly $3.22 billion in its second quarter as it booked a profit of nearly $1.52 billion.

The bank’s provisions for credit losses were up from $633 million in the same quarter last year as the Covid-19 pandemic tore through the economy.

TD reported Thursday its profit for the quarter ended April 30 totalled 80 cents per diluted share, down from $3.17 billion or $1.70 per diluted share a year ago.

On an adjusted basis, the bank says it earned 85 cents per share in its most recent quarter, down from $1.75 in the same quarter last year.

Analysts on average had expected an adjusted profit of 89 cents per share for the quarter, according to financial markets data firm Refinitiv.

TD chief executive Bharat Masrani said the bank began the crisis from a position of strength, with a high quality balance sheet and strong liquidity and capital positions.

“The bank will continue to help our customers, colleagues and communities as we work to recover from the current crisis and work with governments, regulators and other stakeholders to rebuild our economies,” Masrani said in a statement.

TD said its Canadian retail banking operations earned $1.17 billion in the quarter, down from nearly $1.85 billion in the same quarter a year ago.

Provisions for credit losses in the Canadian retail business totalled $1.15 billion, up from $280 million a year ago as the economic outlook deteriorated.

The bank’s U.S. retail income, which included its U.S. retail bank and its investment in TD Ameritrade, totalled $336 million, down from $1.26 billion in the same quarter last year.

Wholesale banking, which includes the bank’s capital markets and investment banking operations, earned $209 million, down from $221 million a year ago.

TD’s corporate segment lost $202 million for the quarter compared with a loss of $161 million in the same quarter last year.