May 25 Reuters Canada39;s two biggest lenders, TD and Royal Bank of Canada, missed analysts39; estimates for quarterly earnings on Thursday as tough economic conditions spurred the banks to make higher provisions for borrowers falling behind on repayments.

TD, which called off its 13billion acquisition of U.S.based First Horizon this month, said it does not expect to meet its mediumterm adjusted earnings growth target range of 7 to 10 due to the failure of the deal.

We39;re confident that this was the right decision, TD Chief Financial Officer Kelvin Tran said in an interview.

TD39;s bid for First Horizon was expected to boost its expansion into the United States, a strategic priority for the Canadian bank as it looks outside of its home market, but the collapse of the deal has left investors wondering where it will find its next avenue for growth.

Tran said the bank, Canada39;s secondbiggest lender, was still focused on its retail network expansion in the U.S. to accelerate organic growth.

TD said on Thursday it would buy back 30 million common shares.

While credit and its own deposit performances were solid, we do not believe that the less than 2 share repurchase plan will generate much valuation support, Barclays analyst John Aiken said.

For RBC, higherthanforecast expenses were the culprit in the quarter, Aiken said. Most of the big banks noted a rise in expenses related to technology investments and employeerelated costs.

We didn39;t foresee this…