No investor likes a surprise net loss, and an unexpected quarterly deficit put Toronto-Dominion Bank's (NYSE: TD) stock in the doghouse on Thursday. The company's share price sagged by more than 2% in late-session trading, a steeper decline than the 0.8% slide of the S 500 index at the same time.

Toronto-Dominion's results for the fiscal third quarter of 2024 came out Thursday morning before market open. For the period, the lender's non-GAAP (adjusted) revenue was 14.2 billion Canadian dollars ($10.4 billion), an improvement over the CA$13.1 billion ($9.6 billion) of the same quarter of 2023.

However, there was a dramatic change on the bottom line, and not for the better. Toronto-Dominion flipped to a GAAP net loss of CA$181 million ($133 million) from the year-ago profit of CA$2.56 billion ($1.88 billion). The major reason for the stark difference was the CA$2.6 billion ($1.9 billion) the company set aside in the quarter for anticipated fines from the U.S. Department of Justice (DoJ). The federal agency is investigating the bank for its anti-money laundering (AML) practices.

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Source Fool.com