TD Bank profit beats expectations as capital markets offset retail

TORONTO, Aug 27 (Reuters) - Toronto-Dominion Bank beat analyst expectations for third-quarter profit on Thursday as earnings from its wholesale business, which includes capital markets, jumped 81% from a year ago, offsetting declines in its Canadian and U.S. retail units.

Adjusted net income at Canada's second-largest lender fell to C$2.3 billion ($1.75 billion), or C$1.25 a share, in the three months through July, from C$3.3 billion, or C$1.79 per share, a year earlier.

Analysts had expected C$1.18 a share on average, Refinitiv Eikon data showed.

Provisions for credit losses (PCL) rose to C$2.2 billion from C$655 million a year earlier, although they were down from C$3.2 billion in the previous quarter. Estimates had called for PCL of C$2 billion.

($1 = 1.3144 Canadian dollars) (Reporting by Nichola Saminather; editing by Jason Neely)