TD Bank Group reported a fall in its fourth-quarter profit on Thursday, as Canada's second-largest lender set aside more rainy-day funds to cover for potential sour loans.

The bank's adjusted net income fell to C$3.51 billion ($2.58 billion), or C$1.83 per share, for the three months ended Oct. 31, from C$4.07 billion, or C$2.18 per share, a year earlier.

($1 = 1.3618 Canadian dollars)

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar and Pooja Desai)