(Reuters) – TD said it would not be able to meet its earnings growth target after its failed acquisition of U.S. regional lender First Horizon (NYSE:FHN), as the Canadian bank reported slight growth in its second quarter earnings on Thursday.

TD’s bid for First Horizon was expected to boost its expansion into the United States, a strategic priority for the bank as it looks outside of its home market, but the collapse of the deal has left investors wondering where its next avenue for growth lies.

The bank said it does not expect to meet its medium-term adjusted earnings growth target range of 7% to 10%.

Its bigger peer Royal Bank of Canada said earnings declined in the second quarter largely due to higher expenses and as tough economic conditions spurred lenders to make higher provisions for borrowers falling behind on repayments.

CIBC also reported a drop in quarterly earnings, but topped Bay Street estimates on a per share basis.

The results follow those of Bank of Montreal and Bank of Nova Scotia on Wednesday which showed a fall in earnings weighed by higher provisions, slower top-line growth and an increase in expenses.

RBC said it set aside C$600 million ($449 million) in bad loan provisions, compared with a provision reversal a year ago. CIBC’s provision for credit losses stood at C$438 million in the second quarter, up C$135 million from a year earlier.

RBC’s net income fell 14% to C$3.65 billion, or C$2.58 per share, for the three months ended April 30.

CIBC’s adjusted net income fell to C$1.63 billion from C$1.65 billion a year ago, but beat expectations on a per share basis. It earned C$1.70 per share, compared with analysts’ estimate of C$1.63 per share, according to Refinitiv data.

The banks noted a rise in expenses related to technology investments and employee-related costs.

TD said net income, excluding one-off items, was at C$3.75 billion or C$1.94 per share, compared with C$3.71 billion or C$2.02 per share, a year earlier.

($1 = 1.3372 Canadian dollars)