TD Bank TD-T reported a rise in third-quarter profit on Thursday, as the Canadian lender built lower cash reserves to cover potential customer defaults on loans.

While Canada is yet to achieve a trade deal with the United States, the outlook has improved considerably from early April, when U.S. President Donald Trump’s tariffs sparked fears of a trade war across North America.

Canadian banks had built higher provisions fearing a macroeconomic slowdown, anticipating defaults on commercial loans, credit cards, and mortgages.

TD’s provision for credit losses was $971-million in the reported period, down from $1.34-billion in the previous quarter. The lender had set aside $1.07-billion for rainy day funds last year.

TD’s shares have rallied over 37 per cent so far this year, as of last c

See Full Page