TD Bank Group Reports First Quarter 2026 Results

Executive Summary

• TD Bank Group reported record Q1 2026 results: reported net income of C$4.04 bn (+45% YoY) and adjusted net income of C$4.22 bn (+16% YoY).
• Diluted earnings per share rose to C$2.34 (reported) and C$2.44 (adjusted), up from C$1.55 and C$2.02 respectively a year earlier.
• All major business segments delivered double‑digit revenue or profit growth, with Canadian Personal & Commercial Banking posting record revenue (C$5.42 bn) and net income (C$2.04 bn).

Key Details

• Financial Highlights (YoY):
• Reported diluted EPS: C$2.34 vs. C$1.55 last year.
• Adjusted diluted EPS: C$2.44 vs. C$2.02 last year.
• Reported net income: C$4,043 m vs. C$2,793 m.

• Adjusted net income: C$4,216 m vs. C$3,623 m.

• Segment Performance:

• Canadian Personal & Commercial Banking – Revenue C$5,421 m (+5% YoY); Net income C$2,044 m (+12%). Record credit‑card acquisitions and loan/deposit volume growth (loans +5%, deposits +3%).
• U.S. Banking – Reported net income US$1,040 m (C$? ) (+45% YoY); Adjusted net income US$1,007 m (+16% YoY). Growth driven by balance‑sheet restructuring and lower credit‑loss provisions; offset by higher AML remediation costs.
• Wealth Management & Insurance – Net income C$757 m (+11% YoY); Revenue C$3,906 m (+9%). Strong insurance premium growth and fee‑based asset‑management revenue.

• Wholesale Banking – Net income C$561 m (+88% YoY); Revenue C$2,470 m (+24%). Record trading‑related revenue and higher lending/advisory fees.

• Capital Position:

• CET1 ratio: 14.5%.

• Total equity: C$125.6 bn (down from C$127.8 bn).

• Key Adjustments / Items of Note (Q1 2026):

• Amortization of acquired intangibles: –C$34 m (–C$8 m after tax).
• Restructuring charges: –C$200 m (–C$52 m after tax).
• Impact from terminated First Horizon Corp. capital‑hedging strategy: –C$44 m (–C$12 m after tax).

• FDIC special assessment: +C$44 m (after‑tax effect +C$11 m).

• Operational Highlights:

• Launch of Branch Virtual Assistant (GenAI) and scaling of AI‑driven real‑estate secured lending.
• Completion of Nordstrom credit‑card platform migration; anticipated US$145 m pre‑tax charge in Q2 2026 for future loss adjustments.

• Continued AI/ML investments across the bank, including KYC platform rollout and enhanced AML monitoring.

• Outlook & Guidance:

• Management expects modest stability in net interest margin for Q2 2026; continued focus on cost‑efficiency through restructuring (target pre‑tax annual savings ≈ C$775 m).
• Ongoing U.S. BSA/AML remediation budget ~US$500 m pre‑tax for FY 2026.

Notable Quotes

• “TD delivered strong first quarter results, including record adjusted earnings and significant year‑over‑year adjusted return on equity growth… we are investing in talent, technology and new capabilities to support our clients.” – Raymond Chun, Group President & CEO.