(Reuters) – TD Bank Inc posted a quarterly loss on Thursday after Canada’s second-largest bank set aside C$3.57 billion ($2.63 billion) for fines related to U.S. regulatory probes into its anti-money laundering program.
The U.S. regulatory investigations into the bank have been a major drag on TD shares over the past year, with investors concerned about the timeline for resolution and potential cost.
TD said Wednesday it expects to reach a global resolution to its anti-money laundering investigations by the end of the year, which will include monetary and non-monetary sanctions.
Analysts have warned that TD could face restrictions on its future growth in the United States as a result of the investigation, given the potential for non-monetary penalties such as asset caps.
Net loss was C$181 million, or 14 cents per share, in the three months ended July 31, compared with profit of C$2.88 billion, or C$1.53 per share, a year earlier.
TD Bank kicks off earnings season for Canadian banks, with other banks due to report results next week.
($1 = 1.3579 Canadian Dollar)
(Reporting by Arasu Kanagi Basil in Bengaluru; Editing by Vijay Kishore)