TD Bank (TD) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 2026 earnings with adjusted net income of $4.7 billion and adjusted EPS of $2.77, up 21% and 26% year-over-year, respectively; reported net income was $4.6 billion and reported EPS $2.74, both significantly higher than last year.

• Strong performance across Canadian, U.S., Wealth Management, and Wholesale Banking segments, with positive operating leverage and disciplined expense management.

• ROE increased to 15.8% reported and 16.0% adjusted; CET1 capital ratio at 14.3%, reflecting strong capital accretion and share buybacks.

• Significant progress in structural cost reductions, achieving CAD 900 million in savings for fiscal 2026 and on track for CAD 2-2.5 billion medium-term target.

• Accelerated investments in AI and innovation, with $195 million in value delivered year-to-date toward a $200 million target for fiscal 2026.

Financial highlights

• Q3 adjusted net income: $4,671 million (up from $3,871 million); reported net income: $4,615 million (up from $3,336 million) year-over-year.

• Q3 adjusted diluted EPS: $2.77 (up from $2.20); reported diluted EPS: $2.74 (up from $1.89) year-over-year.

• Revenue grew 8% year-over-year (reported: $16.9B, up from $15.3B), driven by margin expansion and volume growth in Canadian Personal and Commercial Banking.

• Expenses up 4% year-over-year (adjusted), with variable compensation, FX, and U.S. strategic cards portfolio as key drivers; reported expenses down 1%.

• Pre-tax, pre-provision earnings (PTPP) up 17% year-over-year (adjusted); efficiency ratio net of ISE at 55.2%.

Outlook and guidance

• Fiscal 2026 targets: adjusted ROE 13%+, adjusted EPS growth 6–8%, adjusted expense growth 3–4%, and PCL ratio at 40–50 bps.

• CET1 ratio expected to remain above 13% through fiscal 2027, with potential to return over CAD 13 billion in capital to shareholders.

• Net interest margin in both Canadian and U.S. Banking segments expected to modestly increase in Q4 2026 and into 2027.

• Fiscal 2026 PCLs now expected near the lower end of the previously guided range.

• Management expects continued positive momentum across all business lines, supported by strong capital and ongoing investments in talent, AI, and innovation.