TFS Financial Corporation (TFSL) said Thursday that it earned of $16 million in the quarter that ended Dec. 31, an increase of 42.9% from the same period 2012.

With earnings per share of five cents the $11.4 billion-asset TFS Financial beat estimates of analysts polled by Bloomberg by a penny.

The substantial increase is directly attributable to a lower provision for loan losses, which declined 66.7%, to $6 million, year over year.

Net interest income was $67.8 million for the quarter, down less than 1%. The failure to increase net interest income was a result of lower yields on interest-earning assets.

Total noninterest income decreased by 37.8% to $5.1 million, year over year, while its noninterest expense increased slightly, to $42.9 million. The interest margin held steady at 2.47%.

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