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A person walks their dog past a TD branch in Vancouver.Isabella Falsetti/The Globe and Mail
Toronto-Dominion Bank TD-T reported a jump in first-quarter profit that topped analysts’ estimates on stronger performance across its businesses.
TD’s profit climbed 45 per cent to $4.04-billion, or $2.34 per share, in the three months that ended Jan. 31. Adjusted to exclude certain items, including restructuring charges, the bank said it earned $2.44 per share, topping the $2.26 per share analysts expected, according to S&P Capital IQ.
“TD delivered strong first quarter results, including record adjusted earnings and significant year-over-year adjusted return on equity growth, reflecting momentum across our businesses as we advance our investor day goals,” TD chief executive officer Raymond Chun said in a statement.
As TD cuts costs to address remediation efforts tied to its past anti-money-laundering failings, the bank took a final restructuring charge of $200-million pre-tax in the quarter. In the fourth quarter of last year, it said it expected to book a final $125-million charge in the first quarter of 2026.
“We continue to look at different ways of driving productivity and we found more opportunities to optimize,” TD chief financial officer Kelvin Tran said in an interview. “That’s across the board; there’s no specific area.”
The cuts include winding down certain businesses and reducing its real-estate footprint. In December, the bank said the restructuring would also include a 3-per-cent work-force reduction – an increase from the 2-per-cent cut it previously announced in May.
TD is the sixth major Canadian bank to report earnings for the fiscal first quarter. National Bank of Canada, Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of Commerce also reported higher profit that beat analysts’ estimates.
In the quarter, TD set aside $1.04-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That included $1.16-billion against loans that are still being repaid, based on models that use economic forecasting to predict future losses. In the same quarter last year, TD reserved $1.21-billion in provisions.
Total revenue climbed 18 per cent in the quarter to $16.56-billion and expenses increased 8 per cent to $8.75-billion, which the bank said was driven by restructuring charges, investments in its anti-money laundering remediation efforts and employee-related expenses.
Canadian personal and commercial banking profit was $2.04-billion, up 12 per cent from a year earlier, driven by higher revenue and lower provisions. Loan balances rose 5 per cent year over year.
Profit from the bank’s U.S. arm climbed to $1.04-billion as TD restructured its balance sheet and booked lower provisions.
The wealth management and insurance division generated $757-million in profit, up 11 per cent on higher fee-based revenues from asset growth.
Capital markets profit jumped 88 per cent to $561-million, driven by higher trading revenue and advisory fees.
