The Toronto-dominion Bank Stock Earnings Reports

Q3 2025 highlights: TD reported strong results with net earnings of $3.9 billion and EPS of $2.20, revenue up ~10% YoY and adjusted pre-tax profit up ~13% YoY. The bank delivered positive operating leverage despite elevated governance & control and remediation costs. Capital and liquidity remain healthy (CET1 14.8%, average LCR 138%) and the bank is over halfway through its $8 billion buyback (46M shares repurchased, ~CAD 4B). Key strategic actions: completed a $25B notional investment portfolio repositioning (upfront pretax loss $1.3B) that should generate ~ $500M pretax NII benefit in FY25; completed the targeted ~10% U.S. asset reduction and expect to modestly exceed that; strategic relationship with Fiserv for TD Merchant Solutions; launched TD AI Prism and AI tools in TD Securities. U.S. AML remediation: major management remediation milestones are in place and the bank expects the majority of its management remediation actions to be completed by end of calendar 2025, with additional work into 2026–2027; remediation & governance spend is driving ~$500M pretax of U.S. remediation costs in FY25 and a similar level in FY26. Costs and productivity: announced restructuring charges of $600–700M pretax (Q3 incurred $333M) to drive ~ $550–650M pretax annual run-rate savings; fiscal 2025 expense growth expected at the upper end of 5–7% (assuming 2024 variable comp levels and U.S. cards portfolio). Credit and provisioning: impaired PCLs declined sequentially; the bank added performing overlays for policy/trade uncertainty bringing aggregate policy/trade-related reserves to ~ $600M (built over three quarters); FY25 PCLs expected in the 45–55 bps range. The bank will host an Investor Day on Sept 29 to provide medium-term strategy and additional detail.