First off, the positives. TD’s second quarter revenues are ahead of analyst forecasts. Revenue rises by more than 11% year-over-year to C$13.82bn ($10.11bn). The bank is boosted by a stronger than expected performance in its Canadian home market and in wealth management. Specifically, earnings in Canada and in wealth management are ahead by 7% and 19% to C$1.74bn and C$621m respectively.

The increase in Canadian personal and commercial banking earnings reflects revenue growth. This is partially offset by higher provisions for credit losses and non-interest expenses. Revenue was C$4.84bn, an increase of 10%, driven by volume growth and margin expansion.

Another positive is the performance of the bank’s capital markets unit. TD completed the acquisition of US-based Cowen a year ago. The combined capital markets division posts net income on an adjusted basis that more than doubles to C$441m.

On the other hand, reported net income takes a C$1bn hit due to one-time restructuring charges and provisions for AML issues in the US. Reported net income for the second quarter is down by 22.4% y-o-y to C$2.56bn.

US Retail reports net income of C$580m ($433m), a decrease of 59% y-o-y. On an adjusted basis, net income of C$1.27bn is down by 16% y-o-y.

The US retail bank unit continues to deliver loan growth with total average loan balances up 7% y-o-y.

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“TD delivered strong second quarter results, with earnings of $3.8bn and solid momentum across our franchise. We delivered significant positive operating leverage while continuing to invest in our business, including our risk and control infrastructure,” said Bharat Masrani, Group President and CEO, TD Bank Group