Q1 2025 Toronto-Dominion Bank Earnings Call Transcript
Key Points
- The Toronto-Dominion Bank (TD) delivered strong earnings of $3.6 billion and EPS of $2.02 in Q1 2025.
- The bank's CET1 ratio was 13.1%, and pro forma for the sale of its Schwab stake and share buyback, it would be approximately 14.2%, indicating a strong capital position.
- TD's Canadian Personal and Commercial Banking saw volume growth and strong trading and fee income in market-driven businesses.
- TD Auto Finance achieved record originations in Q1, adding new dealer floor plan relationships.
- TD's Wealth Management and Insurance segments delivered record revenue, earnings, and assets, with new accounts up 30% year-over-year.
- Tariff and trade risks are clouding the economic outlook, potentially impacting provisions and credit quality.
- Expenses increased 12% year over year, driven by governance and control investments and higher PCLs.
- US AML remediation remains a top priority, with significant costs expected, including $500 million in fiscal 2025.
- The bank's provision for credit losses increased to 50 basis points, reflecting policy and trade uncertainty.
- The strategic review is ongoing, with potential for further restructuring and cost optimization, which may impact future expenses.
Good morning, everyone and welcome to the TD Bank Group Q1 2025 earnings conference call. I would now like to turn the meeting over to Ms. Brook Hales, Head of Investor Relations.
Please go ahead, Ms. Hales.
Thank you, operator. Good morning, and welcome to TD Bank Group's first-quarter 2025 results presentation. We will begin today's presentation with remarks from Raymond Chun, the bank's CEO; followed by Leo Salom, President and CEO, TD Bank, America's most Convenient Bank; 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 prequalified analysts and investors 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; Tim Wiggan, Group Head, Wholesale Banking and President and CEO of TD Securities; and Paul
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