- TD (TSX:TD) reported net income of C$3.3 billion, up from a C$181 million loss last year, with adjusted earnings rising 6 per cent to C$3.9 billion
- Canadian banking hit record highs in revenue and deposits, U.S. Retail showed recovery despite restructuring, and Wealth Management surged 63 per cent in net income
- TD completed major balance sheet restructuring, launched AI tools in Wholesale Banking, and maintained a solid 14.8 per cent capital ratio
- Toronto-Dominion Bank stock (TSX:TD) opened at C$108.63
TD Bank (TSX:TD) has reported robust financial results for its Q3, which ended July 31, 2025, showcasing a strong rebound from last year’s losses and continued progress on its restructuring initiatives.
This content has been prepared as part of a partnership with TD Bank and is intended for informational purposes only.
Financial highlights
TD posted reported net income of C$3.3 billion, a sharp turnaround from a loss of C$181 million in Q3 2024. On an adjusted basis, net income rose 6 per cent year-over-year to C$3.9 billion. Reported diluted earnings per share (EPS) were C$1.89, compared to a loss of $0.14 last year, while adjusted EPS climbed to C$2.20, up from C$2.05.
Year-to-date figures also reflected strong performance, with reported net income reaching $17.3 billion, more than triple the $5.2 billion reported in the same period last year. Adjusted net income for the nine months was C$11.1 billion, slightly up from C$11.07 billion.
Segment performance
Canadian personal and commercial banking
This segment delivered a record net income of C$1.95 billion, up 4 per cent year-over-year, driven by record revenue of C$5.24 billion. Growth was fuelled by increased loan and deposit volumes, alongside strong digital sales in personal banking. TD also announced a strategic partnership with Fiserv to enhance its Merchant Solutions offering.
U.S. retail
Despite challenges, including the sale of its stake in Charles Schwab and ongoing BSA/AML remediation efforts, U.S. Retail reported net income of C$760 million (US$554 million), a significant improvement from last year’s loss. On an adjusted basis, income was C$956 million (US$695 million), down 18 per cent due to increased governance and control investments.
TD completed its bond repositioning program and achieved a 10 per cent asset reduction target, part of its broader balance sheet restructuring strategy.
Wealth management and insurance
This segment saw a 63 per cent increase in net income to C$703 million, driven by record assets, strong insurance premium growth, and lower catastrophe-related losses. TD Asset Management secured C$2.5 billion in new mandates, reinforcing its position as Canada’s top institutional asset manager.
TD Insurance continued its digital transformation, with over 75 per cent of clients digitally engaged, and its mobile app was rated Canada’s top home and auto insurance app by Apple and Google.
Wholesale banking
Wholesale Banking posted net income of C$398 million, up 26 per cent year-over-year, with adjusted income at C$423 million, a 12 per cent increase. Revenue rose 15 per cent to C$2.06 billion, driven by growth in Global Markets and Corporate and Investment Banking.
Restructuring and capital strength
TD incurred C$333 million in restructuring charges this quarter, part of a broader initiative expected to yield C$550–C$650 million in annual cost savings. Measures include workforce optimization, asset impairment, and real estate consolidation.
The bank maintained a Common Equity Tier 1 capital ratio of 14.8 per cent, reflecting its strong capital position.
Leadership updates
Frank Pearn joined TD’s Board of Directors on August 27, 2025. John B. MacIntyre will assume the role of Chair of the Board on September 1, 2025.
Outlook
CEO Raymond Chun emphasized TD’s resilience in a media release on these results.
“We are confident in the strength of our business model and the discipline of our teams to navigate shifting economic conditions while delivering for our clients and shareholders,” he said.
The bank said the global economy is expected to continue slowing throughout 2025, with weakening cyclical momentum further impacted by rising trade barriers. The current U.S. administration is likely to maintain elevated tariffs, which are contributing to higher inflation expectations by increasing costs and disrupting international supply chains. This presents a challenge for central banks worldwide, as they must determine whether the inflationary effects are temporary or more enduring.
TD Economics anticipates that interest rates will be lowered in response to mounting evidence of a global economic slowdown. In Canada, the central bank reduced its overnight rate to 2.75 per cent in March 2025 and has since paused to evaluate the implications of U.S. trade policies. TD Economics forecasts that the Bank of Canada will continue to ease rates, potentially reaching 2.25 per cent by year-end.
TD plans to present its revised strategy and financial targets at its upcoming Investor Day on September 29, 2025.
About TD Bank
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. TD is the sixth largest bank in North America by assets and serves more than 27.5 million customers. TD had $1.45 trillion in assets on April 30, 2025.
Toronto-Dominion Bank stock (TSX:TD) opened more than 3 per cent higher at C$108.63 and has climbed 32.20 per cent since the year began.
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