TD Bank Group Reports Fourth Quarter and Fiscal 2025 Results
Executive Summary
- TD Bank Group reported Q4 2025 net income of C$3.28 bn (down 10% YoY) and adjusted net income of C$3.91 bn (up 22% YoY).
- Full‑year 2025 adjusted earnings per share rose to C$8.37, up from C$7.81 in 2024, driven by record revenue in Canadian Personal & Commercial Banking and strong U.S. Retail performance.
- The Bank completed the sale of its remaining Schwab stake (C$21 bn proceeds, C$8.6 bn net gain) and continued a major U.S. balance‑sheet restructuring program, reducing assets by ~10% and generating pre‑tax savings of ≈C$750 mn annually.
Key Details
- Quarterly Financial Highlights (Q4 2025 vs. Q4 2024)
- Reported diluted EPS: C$1.82 ↓ from C$1.97.
- Adjusted diluted EPS: C$2.18 ↑ from C$1.72.
- Reported net income: C$3,280 mn ↓ from C$3,635 mn.
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Adjusted net income: C$3,905 mn ↑ from C$3,205 mn.
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Full‑Year Financial Highlights (2025 vs. 2024)
- Reported diluted EPS: C$11.56 ↑ from C$4.72.
- Adjusted diluted EPS: C$8.37 ↑ from C$7.81.
- Reported net income: C$20,538 mn ↑ from C$8,842 mn.
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Adjusted net income: C$15,025 mn ↑ from C$14,277 mn.
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Segment Performance
- Canadian Personal & Commercial Banking: Record revenue C$5,305 mn (+5% YoY); net income C$1,865 mn (+2%).
- U.S. Retail: Net income C$719 mn (US$520 mn) ↑ 31% YoY; adjusted net income C$1,007 mn (US$726 mn) ↑ 29%.
- Wealth Management & Insurance: Net income C$699 mn (+50% YoY); record assets under administration C$759 bn.
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Wholesale Banking: Net income C$494 mn (+77% adjusted); revenue C$2,200 mn (+24%).
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Key Adjustments (Items of Note) – amortization of intangibles, acquisition & integration charges (Cowen), balance‑sheet restructuring costs, U.S. BSA/AML remediation expenses, and gains/losses on Schwab sale.
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Strategic Transactions
- Schwab Sale (Feb 12 2025): Disposed of remaining 10.1% economic interest; gross proceeds C$21.0 bn (US$14.6 bn); net gain C$8.6 bn (US$5.8 bn).
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U.S. Balance‑Sheet Restructuring: Sold US$31.9 bn of bonds (pre‑tax loss C$1.592 bn) and wound down US$22 bn of non‑core loan portfolios; reduced combined U.S. Bank assets to US$382 bn. Expected pre‑tax savings ≈US$750 mn annually.
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Capital Position – CET1 ratio 14.7%; Tier 1 16.4%; total capital 18.4%.
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Outlook & Guidance – Management expects stable net interest margins, continued cost‑discipline, and execution of the new enterprise strategy focused on deeper client relationships, simpler operating model, and disciplined capital management.
Notable Quotes
“Throughout 2025, we took decisive action to strengthen our bank and shape TD for the future… colleagues are driving a clear strategy to build deeper relationships and run a simpler and faster bank…” – Raymond Chun, Group President & CEO.