TD Bank (TD) Q1 2026 earnings summary

Executive summary

• Reported net income for Q1 2026 was $4,043 million, up 45% year-over-year; adjusted net income was $4,216 million, up 16% year-over-year, with adjusted EPS of $2.44 and ROE at 14.2%.

• All major business segments delivered record or strong earnings, driven by robust trading, fee income, and volume growth in Canadian and U.S. banking, as well as margin expansion.

• Completed $8B share buyback and launched a new $7B program, repurchasing 84 million shares to date.

• Concluded restructuring program with total charges of $886M pre-tax, expecting annual cost savings of $775M.

• Continued significant investments in U.S. BSA/AML remediation, with $500M pre-tax spend expected in 2026 and regulatory oversight extending into 2027.

Financial highlights

• Total revenue (reported) was $16,585 million, up from $14,049 million year-over-year; adjusted revenue up 11% year-over-year.

• Reported net income: $4.0B; Adjusted: $4.2B; Reported EPS: $2.34; Adjusted: $2.44 (up 21% YoY).

• CET1 capital ratio at 14.5%, with strong organic capital accretion and 19M shares repurchased in Q1.

• Efficiency ratio improved to 52.8% (reported) and 57.1% (adjusted, net of ISE).

• Provision for credit losses (PCL) was $1,039 million, with impaired PCLs increasing mainly in Wholesale and U.S. commercial lending.

Outlook and guidance

• Fiscal 2026 targets: 6-8% adjusted EPS growth, 3-4% adjusted expense growth, positive operating leverage, PCL ratio of 40-50bps, and CET1 ratio above 13% by October 2027.

• US Banking expected to achieve $2.9B in earnings for fiscal 2026.

• Medium-term (F'29) targets include mid-to-high single-digit adjusted EPS growth, positive operating leverage, and a dividend payout ratio of 40-50%.

• U.S. BSA/AML remediation and related governance/control investments expected to total approximately $500 million pre-tax for fiscal 2026.