Canadian banks continue the trend of reporting Q2 2023 losses.

Toronto Dominion Bank (TSX:TD) reported its Q2 2023 results on Thursday, highlighting its net income was C$3.35 billion during the quarter, down from $3.81 billion in the same quarter the previous year.

In a press release, the financial institution also said diluted earnings per share were $1.72 compared to $2.07 in Q20 2022, while adjusted net income was $3.75 billion compared to $3.71 billion.

Overall, net interest income was $3.37 billion, representing a $444 million increase from Q2 2022 or a 15 per cent increase . Loan volumes also increased by $31 billion, representing a 5 per cent growth in personal loans and 11 per cent in business loans.

Credit losses also amounted to $599 million in Q2 2023, up from just $27 million in Q2 2022. Meanwhile reported net income was $4.93 billion, down from $7.5 billion.

With the halfway mark of the year approaching, the bank said that following the termination of the merger agreement with First Horizon and the deterioration of the macroeconomic environment, it doesn’t expect to meet its medium-term adjusted earnings per share growth target range of seven to 10 per cent.

“As we enter the second half of 2023, TD’s businesses are strong, and our customer and client relationships continue to expand,” TD chief executive Bharat Masrani said. “We are successfully operating in an unpredictable operating environment, supported by robust capital and liquidity and the best bankers in the industry,”

The bank also said on Thursday that it plans to repurchase for cancellation up to 30 million of its common shares, which represents 1.6 per cent of the 1.83 billion common shares that were issued and outstanding as of April 30.

Shares of TD Bank (TD) are down 4.19 per cent to close Thursday’s trading session at C$77.78.

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