TD Bank Financial Group is reporting flat results for the third quarter ended July 31.

On an operating cash basis, net income for the quarter was $522 million, or 80¢ per common share. This compares to $511 million, or 80¢ per share in the same quarter last year. TD Canada Trust contributed $275 million to the bank’s cash earnings this quarter.

“A successful performance by TD Canada Trust and very solid earnings by TD Securities were strong contributors to our overall performance,” said TD chairman and CEO, Charlie Baillie.

“Although this was a flat quarter overall, we’re especially pleased with these results in the context of the challenging markets that have affected many of our businesses, particularly TD Waterhouse. With the acquisition of Canada Trust 18 months ago, we now have retail and wholesale businesses which give us balanced and sustainable growth.”

“We continue to focus on our strategic imperatives — achieving scale, maintaining momentum, being where banking is going and engaging in activities that are at least North American in scope — which we believe are critical to our ability to deliver consistent shareholder returns,” he added.

“TD Securities delivered strong earnings and return on equity,” noted Baillie. There was positive performance in derivatives, foreign exchange, fixed income and the public equity portfolio, as well as market share gains in corporate debt and equity underwritings, mergers and acquisitions and institutional equities. “With the diversity in its businesses, TD Securities is well positioned to manage the current weaker market conditions,” he said.

Also during the quarter, TD announced an increase to its provision for credit losses, for a full-year provision of $620 million, excluding increased general allowances of $300 million recorded during the first half of the year. TD recognized a charge of $190 million in the third quarter, with the remaining $190 million to be charged in the fourth fiscal quarter.

“With no indication of an end to the economic slowdown, it appears now that growth will not pick up in North America until very late in 2001 or early in 2002,” said Baillie. “Both the Federal Reserve and the Bank of Canada may add to the aggressive monetary easing with additional interest rate cuts in the fall of 2001. The Canadian economy will likely continue to outperform that of the United States, but a longer than expected U.S. slowdown would have a greater effect on Canada’s economic performance,” noted Baillie.