TD Profits Surge on Strong Business Performance
Toronto-Dominion Bank (TD) has announced impressive first-quarter profits that have exceeded analysts’ expectations. The bank reported a profit increase of 45%, totaling $4.04 billion, or $2.34 per share, for the period ending January 31. After adjusting for restructuring charges and other specific items, TD’s earnings per share rose to $2.44, surpassing the anticipated $2.26 according to S&P Capital IQ.
Strong Business Performance Drives TD Profits
Raymond Chun, TD’s CEO, remarked on the stellar financial results, highlighting record adjusted earnings and substantial year-over-year growth in adjusted return on equity. This momentum is attributed to effective strategies aimed at achieving the bank’s long-term goals, as mentioned during their investor day.
Cost-Cutting Measures and Restructuring
The bank’s profit growth coincides with ongoing cost-cutting measures related to remediation efforts from past anti-money-laundering violations. In this quarter, TD recognized a final restructuring charge of $200 million before tax. The bank had anticipated a subsequent $125 million charge in the first quarter of 2026.
- Final restructuring charge in Q1 2026: $125 million
- Final restructuring charge this quarter: $200 million
Kelvin Tran, the CFO, stated that the bank continues to seek ways to enhance productivity across various business segments. This initiative includes reducing the workforce by 3%, an increase from a previously announced 2% cut.
Quarterly Financial Highlights
For the quarter, TD set aside $1.04 billion in provisions for credit losses. This included $1.16 billion allocated for loans that are currently being repaid. In the same quarter last year, the figure was slightly higher at $1.21 billion.
| Financial Metric | Q1 Current Year | Q1 Previous Year |
|---|---|---|
| Total Revenue | $16.56 billion | |
| Expenses | $8.75 billion | |
| Canadian Banking Profit | $2.04 billion | Up 12% |
| U.S. Arm Profit | $1.04 billion | |
| Wealth Management Profit | $757 million | Up 11% |
| Capital Markets Profit | $561 million | Up 88% |
Total revenue grew by 18% to $16.56 billion, while expenses saw a rise of 8% to $8.75 billion, partially due to restructuring charges and investments in anti-money laundering efforts.
As TD continues to navigate these changes, the bank remains optimistic about its ability to maintain strong profitability and meet its performance objectives. It joins other leading Canadian banks in reporting higher-than-expected earnings this fiscal quarter.
