TD Bank (TD) Q1 2026 earnings summary

Executive summary

• Reported net income for Q1 2026 was $4,043 million, up 45% year-over-year; adjusted net income was $4,216 million, up 16% year-over-year, with adjusted EPS at $2.44 and ROE at 14.2%.

• All major business segments delivered record or strong earnings, driven by robust trading, fee income, and volume growth in Canadian Personal and Commercial Banking, Wealth Management & Insurance, and Wholesale Banking.

• Positive operating leverage achieved for the third consecutive quarter, with revenue up 11% year-over-year and expenses up 7%.

• Completed $8 billion share buyback and launched a new $7 billion program, repurchasing 84 million shares to date.

• Major restructuring program concluded with $886 million in charges, targeting $775 million in annual cost savings.

Financial highlights

• Total revenue (reported) was $16,585 million, up from $14,049 million year-over-year; net interest income rose 12% to $8,789 million; non-interest income increased 26% to $7,796 million.

• CET1 capital ratio at 14.5%, with 19 million shares repurchased in Q1, and strong organic capital accretion.

• Provision for credit losses (PCL) was $1,039 million, or 43 bps, with increases mainly in Wholesale and U.S. commercial lending.

• Allowance for credit losses decreased by CAD 144 million quarter-over-quarter, reflecting improved macro forecasts.

• Efficiency ratio improved to 52.8% (reported) and 57.1% (adjusted, net of ISE).

Outlook and guidance

• Fiscal 2026 PCLs expected to remain within 40–50 bps, with adjusted expense growth targeted at 3–4%.

• Targeting 6–8% adjusted EPS growth and 13%+ ROE for fiscal 2026, with CET1 ratio managed towards 13% by October 2027.

• U.S. Banking expected to achieve $2.9 billion in earnings for fiscal 2026.

• Medium-term targets include mid-to-high single-digit adjusted EPS growth, positive operating leverage, and a 40–50% dividend payout ratio.

• U.S. BSA/AML remediation and related investments expected to total approximately $500 million pre-tax for fiscal 2026.