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TD Bank Group’s profit slipped in the fourth quarter compared with a year ago, missing analyst estimates for adjusted earnings.

The bank says it earned $2.86 billion or $1.54 per share in the quarter ending Oct. 31, 3% down from $2.96 billion or $1.58 per share a year earlier.

Earnings were down as provisions for credit losses rose $221 million, or 28.5%, to $891 million.

For the full year, TD saw net income grow 3% despite challenges, said CEO Bharat Masrani.

“We generated earnings growth amidst a challenging macroeconomic environment while we made strategic investments to strengthen our business, deliver for our customers, and modernize and simplify our operations.”

On an adjusted basis for the quarter, TD says it had a net income available to shareholders of $2.88 billion, or $1.59 per diluted share, down from $3 billion, or $1.63 per, share last year.

Revenue was $10.34 billion, up from the $10.14 billion a year ago.

Analysts had $1.74 per share of adjusted earnings, on revenue of $9.85 billion, according to financial markets data firm Refinitiv.

The bank says Canadian and U.S. retail banking saw earnings rise. Canadian retail revenue derives from commercial banking, wealth and insurance businesses. Its revenue growth of 5% reflected increased loan and deposit volumes and higher revenue in the wealth and insurance businesses, the bank said in a release.

The release said that Canadian retail “continues to invest in front-line advisors and customer service specialists, to help customers feel confident about their financial future.”

Income from wholesale banking was down $126 million, or 44%, from a year earlier on impacts of derivative valuation charges connected to upgrades to the valuation system and related methodologies.

Earnings from the company’s stake in brokerage TD Ameritrade were US$219 million, up 25% from last year. On Nov. 25, TD announced it would exchange its 43% stake in TD Ameritrade for a 13.4% stake in Charles Schwab Corp. as part of Schwab’s proposed US$26-billion takeover of the brokerage.