(Reuters) -Canada’s TD Bank reported a fall in first-quarter profit on Thursday as its U.S. business grapples with the fallout of money laundering compliance failures.
Last year, TD became the biggest bank in U.S. history to plead guilty to money laundering failures in the country and agreed to pay a landmark $3 billion fine.
2025 is set to be a transition year for TD as it focuses on restructuring its balance sheet to comply with the U.S. asset cap and works on fixing its compliance problems.
TD’s U.S. retail business earnings fell 61% to C$342 million ($238.59 million) in the quarter from a year earlier.
The bank’s net income fell to C$2.79 billion ($1.95 billion) in the three months ended January 31, from C$2.82 billion a year earlier.
On a per-share basis, TD earned C$1.55 in the quarter, the same as last year.
TD’s provision for credit losses rose to C$1.21 billion in the quarter from C$1 billion a year earlier.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid and Shreya Biswas)
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