TD Bank Financial Group on Thursday reported a loss for the second quarter ended April 30.

TD said the results for the second quarter reflected steps announced on April 3, to restructure the bank’s wealth management business outside of North America and the U.S. equity options arm of its wholesale banking operation.

TD Bank posted a loss of $273 million, or 46¢ a share, including charges for the period ended April 30. That compares with profit of $156 million, or 20¢ per share, in the prior-year period.

The bank said total restructuring costs and impairment charges reduced its earnings by 95¢ per share for the quarter.

Restructuring costs of $21 million and impairment charges of $313 million totaling $334 million pre-tax ($328 million after-tax) were incurred against the wealth management business. For the wholesale business, restructuring costs of $72 million and impairment charges of $350 million amounted to $422 million pre-tax ($289 million after-tax).


“As we stated at our annual meeting last month, we were taking steps to eliminate losses in these businesses and that this would reduce our earnings for the second quarter, when the bulk of the charges would be taken,” said Ed Clark, TD Bank Financial Group president and CEO, in a statement. “We look forward to generating improved earnings as the restructuring plans are implemented.”

On an individual business level, performance was particularly strong for Personal and Commercial Banking, which posted double-digit earnings growth, with net income up by $42 million or 16% over last year.

Wealth Management remains profitable in Canada and the U.S. despite weakened market activity. Overall, Wealth Management reported a cash basis net loss for the quarter of $299 million, which includes after-tax restructuring costs and impairment charges of $328 million.

At April 30, 2003, the Bank’s Tier 1 capital ratio was 8.8% compared with 8.5% at Jan. 31, 2003 and 8.1% at October 31, 2002.