Company Reports

Toronto-Dominion is the second-largest Canadian bank. Around 55% of its revenue is domestic and around 40% is from the US. We think new CEO Raymond Chun is putting the bank on the right track. 2025 was a transitional fiscal year as TD is actively remediating its US anti-money-laundering system with elevated expenses and repositioning its US balance sheet for its asset cap growth limitations. TD also sold its 10.1% equity stake in Charles Schwab in February of 2025, which gives the bank excess capital to cover the costs of the balance sheet optimization and conduct share buybacks. TD reduced its share count by 3.5% in fiscal 2025 through buybacks, and we expect the bank to reduce its share count by around 3.8% in fiscal 2026. Divesting Schwab shares also helps the bank sharpen its focus. The balance sheet growth limitation on TD’s US retail bank means that the company will have to grow its domestic businesses faster; we view this as a positive, because TD’s Canadian businesses are moatier.

Toronto-Dominion reported strong fiscal third-quarter results. Adjusted EPS came in at CAD 2.77, up 26% from a year ago. The bank's third-quarter results translated into an adjusted return on equity of 16.0%, well above its fiscal 2026 target of 13.0%.

Toronto-Dominion is the second-largest Canadian bank. Around 55% of its revenue is domestic and around 40% is from the US. We think new CEO Raymond Chun is putting the bank on the right track. 2025 was a transitional fiscal year as TD is actively remediating its US anti-money-laundering system with elevated expenses and repositioning its US balance sheet for its asset cap growth limitations. TD also sold its 10.1% equity stake in Charles Schwab in February of 2025, which gives the bank excess capital to cover the costs of the balance sheet optimization and conduct share buybacks. TD reduced its share count by 3.5% in fiscal 2025 through buybacks, and we expect the bank to reduce its share count by around 3.8% in fiscal 2026. Divesting Schwab shares also helps the bank sharpen its focus. The balance sheet growth limitation on TD’s US retail bank means that the company will have to grow its domestic businesses faster; we view this as a positive, because TD’s Canadian businesses are moatier.

Toronto-Dominion reported strong fiscal second-quarter results. Adjusted EPS came in at CAD 2.38, up 21% from a year ago. The results translated into an adjusted return on equity of 14.4%, above its current fiscal 2026 target of 13.0%.

Toronto-Dominion reported strong fiscal first-quarter results. Adjusted EPS came in at CAD 2.44, up 21% from a year ago. The results translated into an adjusted return on equity of 14.2%, above its current 2026 target of 13.0%.

Toronto-Dominion's wholesale banking segment delivered strong performance in fiscal 2025, driven primarily by strong results from its trading business.

Toronto-Dominion is the second-largest Canadian bank. Around 55% of its revenue is domestic and around 40% is from the US. We think new CEO Raymond Chun is putting the bank on the right track. 2025 was a transitional fiscal year as TD is actively remediating its US anti-money-laundering system with elevated expenses and repositioning its US balance sheet for its asset cap growth limitations. TD also sold its 10.1% equity stake in Charles Schwab in February of 2025, which gives the bank excess capital to cover the costs of the balance sheet optimization and conduct share buybacks. TD reduced its share count by 3.5% in fiscal 2025 through buybacks, and we expect the bank to reduce its share count by around 3.8% in fiscal 2026. Divesting Schwab shares also helps the bank sharpen its focus. The balance sheet growth limitation on TD’s US retail bank means that the company will have to grow its domestic businesses faster; we view this as a positive, because TD’s Canadian businesses are moatier.

Toronto-Dominion Bank reported decent fiscal fourth-quarter results. Adjusted EPS came in at CAD 2.18, up 27% from a year ago. The bank expects around 6% to 8% growth in adjusted EPS for fiscal 2026.

Toronto-Dominion is the second-largest Canadian bank. Around 55% of its revenue is domestic and around 40% is from the US. We think new CEO Raymond Chun is putting the bank on the right track. 2025 will be a transitional year as TD is actively remediating its US anti-money-laundering system with elevated expenses and repositioning its US balance sheet for its asset cap growth limitations. TD also sold its 10.1% equity stake in Charles Schwab in February, which gives the bank excess capital to cover the costs of the balance sheet optimization and conduct share buybacks. TD has authorized a buyback plan of 100 million common shares, around 5.7% of shares outstanding. We think it’s a good use of capital and should be accretive to shareholders. Divesting Schwab shares also helps the bank sharpen its focus. The balance sheet growth limitation on TD’s US retail bank means that the company will have to grow its domestic businesses faster; we view this as a positive, because TD’s Canadian businesses are moatier.

Toronto-Dominion reported fiscal third-quarter results that were largely in line with our expectations. Adjusted EPS came in at CAD 2.20, up 7% from a year ago. Provisioning expenses declined by 28% sequentially, mostly from lower performing loan provisioning.

Toronto-Dominion reported fiscal second-quarter results that were basically in line with our expectations. Adjusted EPS came in at CAD 1.97, down 3% from a year ago. That said, investors should be aware that the trajectory of the Canadian economy still has heightened uncertainty related to tariffs.

On April 2, US President Donald Trump announced sweeping tariffs on goods imported from the rest of the world. Canada and Mexico were spared from these new tariffs; however, the previously announced tariffs on Canada are still in place, and the 25% global auto tariff has taken effect.

After taking a fresh look at Toronto-Dominion Bank, we are updating our fair value estimate to CAD 93/USD 65 per share from CAD 92/USD 65. We maintain our wide moat rating but downgrade our Capital Allocation Rating to Standard from Exemplary due to the firm’s US anti-money-laundering failures. We view the shares as fairly priced.

Toronto-Dominion is the second-largest Canadian bank. Around 55% of its revenue is domestic and around 40% is from the US. We think new CEO Raymond Chun is putting the bank on the right track. 2025 will be a transitional year as TD is actively remediating its US anti-money-laundering system with elevated expenses and repositioning its US balance sheet for its asset cap growth limitations. TD also sold its 10.1% equity stake in Charles Schwab in February, which gives the bank excess capital to cover the costs of the balance sheet optimization and conduct share buybacks. TD has authorized a buyback plan of 100 million common shares, around 5.7% of shares outstanding. We think it’s a good use of capital and should be accretive to shareholders. Divesting Schwab shares also helps the bank sharpen its focus. The balance sheet growth limitation on TD’s US retail bank means that the company will have to grow its domestic businesses faster; we view this as a positive, because TD’s Canadian businesses are moatier.

Toronto-Dominion reported solid earnings that were in line with our expectations with net revenue increasing 2% to CAD 14 billion. Meanwhile, diluted earnings per share were flat at CAD 1.55, which translated to a return on equity of 10.1%.

On Feb. 1, the Trump administration announced a 25% tariff on Canadian goods and a 10% tariff on Canadian oil and gas goods. The Canadian government announced a retaliatory tariff later on Feb. 1, starting with 25% tariffs on CAD 30 billion of US products like beverages, cosmetics, and paper products (effective on Feb. 4) and on an additional CAD 125 billion of US goods including cars and trucks (effective in three weeks).

Toronto-Dominion is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives approximately 55% of its revenue from Canada and 35% from the United States, with the rest from other countries. Toronto-Dominion has done an admirable job of focusing on its Canadian retail operations and growing into number-one or -two market share for most key products in this segment. The bank also has number-two market share for business banking in Canada. With over CAD 400 billion in Canadian assets under management and top-three dealer status in Canada, and being the number-one card issuer in Canada, Toronto-Dominion should remain one of the dominant Canadian banks for years to come.

Toronto-Dominion is one of the two largest banks in Canada by assets and one of six that collectively hold roughly 90% of the nation's banking deposits. The bank derives approximately 55% of its revenue from Canada and 35% from the United States, with the rest from other countries. Toronto-Dominion has done an admirable job of focusing on its Canadian retail operations and growing into number-one or -two market share for most key products in this segment. The bank also has number-two market share for business banking in Canada. With over CAD 400 billion in Canadian assets under management and top-three dealer status in Canada, and being the number-one card issuer in Canada, Toronto-Dominion should remain one of the dominant Canadian banks for years to come.

Wide-moat-rated Toronto-Dominion Bank reported weaker-than-expected fiscal fourth-quarter results on higher costs as it works to put its regulatory issues in the US behind it. Adjusted net revenue increased 12.5% to CAD 14.9 billion while adjusted net income fell 8% from last year to CAD 3.2 billion. These results translate to a return on equity of 11.7%, below the firm’s historical performance. TD Bank also suspended its medium-term financial targets of 7%-10% earnings per share growth and a 16% return on equity. While this was not surprising to see following the asset cap placed on its US operations, which will be a headwind for growth, it is still disappointing. That said, we do not expect to materially alter our CAD 88/USD 64 fair value estimate.

The Wall Street Journal reported that wide-moat-rated Toronto-Dominion Bank will face around USD 3 billion, or about CAD 4.15 billion, in penalties for its failure to have proper anti-money-laundering practices in place in its US operations. As part of the settlement, regulators are also expected to place an asset cap on the firm’s US business. Despite the size of such a settlement, we do not expect to materially alter our CAD 88/USD 64 fair value estimate for Toronto-Dominion as the amount of the fine roughly matches what was already included in our projections. That said, we still see the shares as roughly fairly valued, despite the market’s negative response to the Oct. 10 news.