TD Bank (TD) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong financial performance with reported net income of $3.3B–$3.336B, adjusted net income of $3.871B–$3.9B, and adjusted EPS of $2.20, driven by robust fee and trading income, and volume growth in Canadian Personal and Commercial Banking.

• Strategic actions included leadership and board renewal, partnership with Fiserv, completion of U.S. balance sheet restructuring, and continued U.S. BSA/AML remediation.

• Structural cost reduction initiatives and a new restructuring program are underway, targeting $550–$650 million in annual pre-tax savings.

• Sale of Schwab shares in Q2 2025 generated a net gain of $8.6B and boosted CET1 capital by 238 bps.

• Share buyback program ongoing, with 45.5–46 million shares repurchased for over $4 billion, and a commitment to an $8 billion NCIB.

Financial highlights

• Q3 2025 total revenue was $15.3B–$15.6B, up 8%–10% year-over-year, supported by higher fee income, trading revenue, and volume growth in Canadian banking.

• Provision for credit losses (PCL) was $971M, down $101M year-over-year, with impaired PCLs decreasing quarter-over-quarter.

• CET1 capital ratio stood at 14.8%, reflecting strong capital generation and share buybacks.

• Efficiency ratio was 55.7% reported, 57.8% adjusted; ROE was 11.3% reported, 13.2% adjusted.

• Allowance for credit losses was $9.7B as of July 31, 2025.

Outlook and guidance

• Fiscal 2025 adjusted expense growth expected at the upper end of 5%–7% range, reflecting governance, control, and business growth investments.

• U.S. BSA/AML remediation and related investments projected at ~$500 million pre-tax in both fiscal 2025 and 2026.

• Fiscal 2025 PCL results anticipated within the 45–55 bps range.

• U.S. Retail non-interest expenses expected to grow in the mid-single digit range for fiscal 2026.

• Strategic review underway, with new targets to be presented at Investor Day in September 2025.