Toronto-Dominion Bank reported a strong third quarter for fiscal 2026, significantly exceeding analyst expectations with reported net income of $4,615 million and total revenue of $16,885 million. The performance was anchored by record-breaking earnings in the Canadian retail and Wholesale Banking divisions, which helped offset headwinds from increased U.S. regulatory remediation spending.
Key Highlights
- Reported diluted EPS of $2.74 beat the consensus estimate of $1.74, while adjusted diluted EPS rose 26% year-over-year to $2.77.
- Canadian Personal and Commercial Banking delivered record net income of $2,095 million, up 7% year-over-year, driven by 5% revenue growth and strong volume in loans and deposits.
- Wholesale Banking net income surged 87% year-over-year to $743 million, benefiting from heightened client activity and favorable market conditions that drove 25% revenue growth.
- Provision for Credit Losses (PCL) of $917 million was lower than the $1.15 billion expected, with impaired provisions reflecting improvements in business and government lending.
- Management increased the expected fiscal 2026 spend for U.S. AML remediation to approximately US$550 million from US$500 million due to expanded lookback activities.