Toronto-Dominion Bank today reported a $111 million increase in its profit for the fourth quarter ended October 31, helped by higher retail banking revenues.

“The fourth quarter capped a strong year for TD Bank Financial Group and confirmed that all three businesses are on strategy and that our strategies are working,” said Ed Clark, TD Bank president and CEO, in a release.

Net income at rose to $612 million, or 91¢ per share in the quarter ended Oct. 31, up from $501 million, or 74¢ per share in the year-before period.

Return on equity was 19.1%, up from 16.7% in the same quarter last year.

TD’s retail banking earnings increased 19% to $390 million. The bank said good volume growth in real estate secured lending, business deposits and insurance, combined with a boost from the Liberty Mutual and Laurentian acquisitions, contributed to solid revenue growth in the fourth quarter.

Revenue in the retail group grew by $124 million or 8% over last year. The bank said The outlook is for revenue growth to slow somewhat from the 8% rate this quarter although net interest margins are expected to remain stable in the short term based on an upward trend in short term interest rates.

As well, the bank saw strong growth from its insurance business.

A strong credit environment allowed the bank to record a reversal of credit losses of $73 million during the quarter after an $83 million reversal in the year-before quarter.

Wholesale banking income was flat at $126 million, while wealth management profit retreated 36% to $67 million, as trading volumes at the TD Waterhouse discount brokerage were hurt by softer financial markets.

Assets under administration in the wealth management group grew by $20 billion in 2004 to stand at $279 billion at the end of the fourth quarter.

Also today, the bank declared a quarterly dividend of 36¢ a share.

TD’s stock closed at $47.13 on the Toronto Stock Exchange on Tuesday. In Wednesday morning trading, TD shares fell 26¢ to $46.87.