(Reuters) -Toronto-Dominion Financial institution’s quarterly revenue beat estimates on Thursday, as strong development in private loans in Canada and the US overshadowed weak point in its wealth administration and insurance coverage unit.

The outcomes from Canada’s second-largest financial institution spherical up a blended quarter for lenders within the nation, as they acquired a lift from the Financial institution of Canada’s rate of interest hikes however needed to increase provisions for potential dangerous loans.

Earlier this week, information confirmed the Canadian financial system had unexpectedly stalled within the ultimate three months of 2022, bolstering the central financial institution’s case to carry off on additional charge hikes if costs eased as anticipated.

Canada’s largest lender Royal Financial institution of Canada too restated its forecast of a average recession this yr.

On Thursday, TD reported adjusted earnings of C$2.23 per share, greater than C$2.08 a yr earlier and beating analysts’ common estimate of C$2.20 a share, in keeping with Refinitiv IBES information.

Internet earnings at its Canadian private and business banking enterprise grew 7%, whereas its U.S. retail financial institution unit posted a development of 25%.

That helped soften a success from wealth administration and insurance coverage, the place the online earnings fell 14%.

Contributing to a 58% hunch within the financial institution’s total web revenue was its settlement this week to pay $1.2 billion to resolve a litigation by former Allen Stanford traders, who had accused TD of contributing to the imprisoned financier’s huge Ponzi scheme.

Individually, TD mentioned it was not anticipating to win regulatory nod for its $13.4 billion deal for U.S.-based First Horizon (NYSE:) Corp by Might 27, which is the prolonged deadline the businesses had set to shut the deal.

“We’re in discussions with First Horizon a couple of potential additional extension past Might 27,” TD Chief Government Officer Bharat Masrani mentioned.

($1 = 1.3613 Canadian {dollars})