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Toronto-Dominion Bank increased its dividend as it reported a 2.4 per cent uptick in first-quarter profits to $2.41 billion, falling short of street expectations.

The lender’s earnings from its U.S. retail operations were strong, up 30 per cent from a year earlier, but net income from its Canadian retail operations slipped and wholesale banking reported a net loss of $17 million.

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The quarter also included a $607-million charge related to the long-term loyalty agreement with Air Canada, which had an impact of 24 cents per share, the bank said.

“TD’s retail segments in both Canada and the U.S. had a strong start to the year, with continued revenue growth and solid earnings,” chief executive Bharat Masrani said in a statement.

“However, market volatility and lower client activity impacted our wholesale segment in the quarter.”

The bank’s net income for its first quarter amounted to $1.27 per diluted share, up from $1.24 for the quarter ended Jan. 31 last year.