Source: The Canadian Press

TD Bank Financial Group (TSX:TD) more than doubled its second-quarter profit but that was not enough to impress some analysts as it fell short of estimates.

The bank said Thursday its net income was nearly $1.2 billion, before adjustments, or $1.30 per diluted share, up from $545 million or 59 cents a share a year earlier.

On an adjusted basis, stripping out one-time items, TD’s net income was $1.2 billion or $1.36 per share — two cents short of what analyst had on average been expecting, according to Thomson Reuters.

TD’s revenue was nearly $4.77 billion, up $442 million or about 10% from the fiscal second quarter of 2009.

“Our U.S. operations delivered improving results despite an economic picture that remains less robust than what we’re seeing in Canada,” said chief executive Ed Clark in a release.

“We also saw the lowest level of loan losses in six quarters across the board.”

The bank’s Canadian personal and commercial banking division reported record earnings of $761 million, a 29% increase from $589 million a year earlier. Clark said that loan losses were starting to improve.

In the U.S., the retail banking wing generated a net income worth US$241 million, up 45% over the same period a year ago. Provisions for credit losses were down 37% to $162 million.

TD’s wealth management division increased net income by 42% to C$111 million on higher fee revenues and stronger trading volumes.

“The rebound in equity markets we saw at the beginning of this year continued to help us grow assets in the quarter and transaction activity also remained strong,” Clark said.

“With that said, we remain cautiously optimistic about wealth management as market volatility continues to exist.”

The wholesale banking, or investment banking, division reported a 27% rise in net income to $220 million.