Toronto-Dominion Bank is reporting a return to profitability for the fourth quarter ended October 31, compared with a loss one year ago.

The bank says net income in the quarter was $501 million, or 73¢ a share, compared with a loss of $196 million, or 34 ¢ share, in the same quarter last year.

“I was confident that we had the strategies and expertise to deliver on our plan to reposition the bank but was pleasantly surprised at how quickly we were able to achieve our goal,” said Ed Clark, TD Bank president and CEO.

The bank says sharply lower provisions for bad loans helped the bank rebound from a year-earlier loss. Loan loss provisions for the quarter were $157 million, far lower than the $950 million reported a year ago.

Return on equity was 16.7% during the quarter, compared with negative 7.4% in the year-before period.

The bank’s Tier 1 capital position has improved to 10.5%, up from 9.7% at the end of last quarter and 8.1% at the end of fiscal 2002.

TD says wealth-management revenues rose 19%, helped by rising financial markets and an improved performance from TD Waterhouse, the bank’s discount brokerage. The bank has refused to comment on rumours that the unit is up for sale.

Retail banking revenue rose by 2% in the quarter, while wholesale banking revenue fell 11% from the a year ago.

Ed Clark also announced the appointment of Bob Dorrance to the position of vice chairman, TD Bank Financial Group, effective immediately. Dorrance, who retains his title as Chairman and CEO of TD Securities, will now be responsible for Wholesale Banking at TD.

The bank also announced a quarterly dividend of 32¢ per common share.