TORONTO, March 31 (Reuters) - Toronto Dominion Bank TD.TO ,
Canada's second biggest bank, said on Thursday that it expected
losses from bad loans in the oil & gas sector to be manageable
given its relatively small exposure to the energy sector.
TD has set aside a comparatively low amount to cover loans
that have turned sour. Gross impaired loans in the oil & gas
sector fell to C$86 million in the first quarter, from C$93
million in the fourth quarter. Other Canadian banks, such as
Bank Nova Scotia BNS.TO , have warned of much higher losses.
"We remain confident that any losses in our oil and gas
portfolio will be manageable given the small size of this
exposure relative to our overall balance sheet," Chief Executive
Bharat Masrani told shareholders at the bank's annual meeting.
Masrani said that Canada's core economic challenge stemmed
largely from a collapse in global commodity prices.
"It's causing a lot of pain in many parts of the country -
but we have been through tough times like this before - and
together we will get through them again," he said.
He added that Canada's banking system is sound and its banks
strong and said they would be willing and able to support
activities that can stimulate the economy and boost
productivity.