The Canadian Press

Toronto-Dominion Bank (TSX:TD) reported first-quarter results that beat analyst estimates in terms of both profit and revenue, including record earnings at its Canadian personal and commercial banking operations.

TD Bank’s net income rose to $1.3 billion in its latest quarter, essentially doubling the $653 million that it earned a year earlier, the bank announced Thursday.

TD’s Canadian personal and commercial banking unit — which includes TD Canada Trust — accounted for more than half of overall profit during the quarter, rising 23 per cent from a year ago to $720 million.

“Our year is off to a great start after an excellent first quarter that featured record revenue of more than $5 billion, stable levels of loan losses and good expense management,” said Ed Clark, TD’s president and chief executive officer.

“These results display the earnings power of our Canadian retail business.”

The bank’s overall diluted earnings were $1.44 per share before adjustments and $1.60 after adjustments –beating analyst estimates of $1.35 per share.

The $5 billion in revenue reported by TD for the quarter was up about $900 million from a year before and also above analyst estimates compiled by Thomson Reuters.

TD Bank becomes the latest of Canada’s big banks to exceed Bay Street estimates, with only Royal Bank of Canada (TSX:RY) falling slightly short on Wednesday.

Bank of Nova Scotia (TSX:BNS), the last of Canada’s big banks to report financial results for their fiscal first quarter, will issue its numbers next week.

TD decreased its overall provision for credit losses to $517 million in the quarter from $630 million, the bulk of that at its Canadian personal and commercial banking, where provisions were increased to $315 million, up 18 per cent from the first quarter of fiscal 2009.

Provision for credit losses at business banking was $38 million, up 81 per cent from a year earlier, TD said.

TD Bank said it expects earnings to be strong through 2010 as revenue grows and margins stabilize. Provisions for credit losses on personal loans are expected to be stable, as well.

“Overall, we feel great about our results and the momentum we have going into this year,” Clark said.

“Economic weakness remains a challenge going forward, as does the regulatory uncertainty in the U.S. However, our capital levels remain robust and position us to emerge even stronger when the economic recovery is complete.”

Shares in the bank were up $1.20 or 1.8 per cent to $69.56 in morning trading on the Toronto stock market.