TD Warns of $800 Million of Loan-Loss Provisions for U.S. Unit

Toronto-Dominion Bank said it expects to record about C$1.1 billion ($800 million) in loan-loss provisions for its U.S. retail division in its fiscal second quarter, the result of the coronavirus pandemic’s economic impact.

The Toronto-based lender also will have about C$600 million of set-asides tied to U.S. credit cards that consist primarily of its retailer partners’ share of provisions for credit losses, Toronto-Dominion said Friday in a statement. Those are fully offset through corporate non-interest expenses and won’t have an impact on earnings, the bank said. Its U.S. credit-card retail partners include Target Corp. and Nordstrom Inc.

While the ...