Q2 2026 Toronto-Dominion Bank Earnings Call Transcript
Key Points
- The Toronto-Dominion Bank (TD) reported a 21% year-over-year increase in EPS and a 14.4% ROE, surpassing its targets.
- The bank achieved positive operating leverage for the fourth consecutive quarter, with expenses up only 3% year-over-year, excluding variable compensation and FX impacts.
- TD announced a $0.04 dividend increase, reflecting confidence in future growth and earnings power.
- Canadian Personal and Commercial Banking delivered record Q2 revenue, with real estate secured lending volumes growing 5% year-over-year.
- TD's Wealth Management and Insurance segments delivered record earnings and assets, with significant growth in digital investing and ETF assets.
- US Banking expenses increased by 10% year-over-year, driven by higher governance and control investments.
- AML remediation remains a top priority in US Banking, with ongoing costs impacting financial performance.
- The geopolitical environment and ongoing conflict in the Middle East pose potential risks to credit performance.
- Increased competition in the loan and deposit markets is pressuring margins in Canadian retail banking.
- The bank's provision for credit losses (PCL) remains stable but is expected to face pressure due to macroeconomic factors and geopolitical risks.
Good morning, everyone. Welcome to the TD Bank Group second-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, Hales.
Thank you, operator. Good morning, and welcome to TD Bank Group's second-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 second 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 of Wholesale Banking. Please turn to the next slide.
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