TD Bank Reports Decline in Fourth-Quarter Profit

(Reuters) – Canada's second-biggest lender TD Bank reported a fall in fourth-quarter profit on Thursday, impacted by weaknesses in its U.S. business due to anti-money laundering issues.

In October, TD Bank became the largest bank in U.S. history to plead guilty to violating federal anti-money laundering laws, resulting in $3 billion in penalties.

Furthermore, the bank has faced a rare asset cap imposed by U.S. regulators, requiring it to reduce its assets by 10% and sell up to $50 billion in low-yielding bonds for reinvestment.

The U.S. retail business reflected an adjusted net income of C$1.10 billion ($782.70 million) for the quarter, down C$174 million from the previous year.

Analysts suggest that TD may focus on being more competitive in the domestic market due to the U.S. asset cap.

Overall, the bank's adjusted net income decreased to C$3.21 billion ($2.28 billion), or C$1.72 per share, for the three months ending October 31, down from C$3.49 billion, or C$1.82 per share, the previous year.

> ($1 = 1.4054 Canadian dollars)