(Reuters) – Canada’s second-biggest lender TD Bank reported a fall in fourth-quarter revenue on Thursday, harm by weak spot in its U.S. enterprise because of the affect of anti-money laundering points.
The lender in October turned the most important financial institution in U.S. historical past to plead responsible to violating a federal regulation geared toward stopping cash laundering and agreed to pay $3 billion in penalties.
TD has been hit by a uncommon asset cap imposed by regulators within the United States. The financial institution will scale back its property within the nation by 10% and promote as a lot as $50 billion of low-yielding bonds and reinvest the proceeds.
The financial institution’s U.S. retail enterprise posted an adjusted internet earnings of C$1.10 billion ($782.70 million) within the quarter, a lower of C$174 million from a 12 months earlier.
Analysts consider TD may look to get extra aggressive within the home market following the U.S. asset cap imposition.
The financial institution’s adjusted internet earnings fell to C$3.21 billion ($2.28 billion), or C$1.72 per share, within the three months ended Oct. 31, from C$3.49 billion, or C$1.82 per share, a 12 months earlier.
($1 = 1.4054 Canadian {dollars})
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)
