Q1 2026 Toronto-Dominion Bank Earnings Call Transcript
Key Points
- The Toronto-Dominion Bank (TD) delivered record earnings of $4.2 billion and EPS of $2.44, with an ROE of 14.2%, up 100 basis points year-over-year.
- The bank achieved robust trading and fee income growth, volume growth in Canadian Personal and Commercial Banking, and margin expansion.
- TD completed an $8 billion share buyback and launched a new $7 billion share buyback, demonstrating strong capital return to shareholders.
- The bank's CET1 ratio was 14.5%, indicating a strong capital position with plans to manage towards a 13% CET1 ratio by the second half of fiscal 2027.
- TD's Wealth Management and Insurance segments delivered record earnings and assets, with significant market share gains and strategic investments in AI and digital capabilities.
- Impaired PCLs increased quarter-over-quarter in wholesale and US commercial lending, reflecting challenges with a small number of borrowers.
- The bank incurred restructuring charges of $200 million pretax, concluding a program with total charges of $886 million pretax.
- US Banking faced challenges with small business and lower-end community banking segments, showing sluggish growth due to economic uncertainties.
- The bank's AML remediation program in the US continues to require significant investment, with $500 million expected in fiscal 2026.
- TD's expenses increased 7% year-over-year, driven by variable compensation, foreign exchange, and the impact of the US strategic card portfolio.
Good morning, everyone. Welcome to the TD Bank Group first quarter 2026 earnings conference call. I would now like to turn the meeting over to Ms. Brooke Hales, Head of Investor Relations. Please go ahead, Ms. Hales.
Thank you, operator. Good morning, and welcome to TD Bank Group's first quarter 2026 results presentation. We will begin today's presentation with remarks from Raymond Chun, the bank's CEO; followed by Leo Salom, Group Head, US Banking, after which Kelvin Tran, the bank's CFO, will present our first quarter operating results. Ajai Bambawale, Chief Risk Officer, will then offer comments on credit quality, after which we will invite questions from analysts on the phone.
Also present today to answer your questions are Sona Mehta, Group Head, Canadian Personal Banking; Barbara Hooper, Group Head, Canadian Business Banking; Paul Clark, Group Head, Wealth Management and Insurance; and Tim Wiggan, Group Head, Wholesale Banking. Please turn to the next slide.
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