TD raises dividend 7% on higher profit

TD Bank has joined the list of Canadian banks raising its dividend in the third quarter, pushing it seven per cent higher on improved earnings.

The bank says its quarterly dividend will be 77 cents, an increase of five cents.

Meanwhile, the bank reported Thursday that quarterly net income rose to $1.7 billion, or $1.78 per share, from $1.49 billion or $1.58 a share, in the comparable year-earlier period.

After adjustments, the bank's net income was $1.82 billion or $1.91 per diluted share.

Revenue increased to $5.84 billion from $5.38 billion.

Analysts had estimated that, on average, the bank would earn $1.84 per share, according to Thomson Reuters. Revenues were projected at $5.79 billion.

TD raised its dividend in the first quarter of 2012 despite a drop in net income. In the second quarter, TD was the biggest gainer among Canadian banks, seeing profits rise nearly 21 per cent from the year-earlier period.

But chief executive Ed Clark warned at the time that slowing loan growth and persistently low interest rates could impact growth over the rest of the year.

Earlier this month, TD sold its U.S. insurance business to USI Insurance Services for an undisclosed price.

TD Bank is one of North America's biggest retail banks, with operations across Canada and in several parts of the U.S. northeastern and mid-Atlantic states.