Profits beat analysts' expectations after reporting higher fourth-quarter earnings on Thursday, driven by better performance in its U.S. retail, wealth management and wholesale banking segments.
TD's net income for the three months ended Oct. 31 was $3.28 billion, compared with $3.63 billion in the same period a year ago, resulting in net earnings per share of $1.82.
The company's adjusted net income (excluding the impact of one-time items) was $3.9 billion, compared with $3.2 billion last year, resulting in adjusted earnings per share of $2.18, beating analysts' expectations of about $2.01 per share.
The bank's fiscal 2025 net income was $20.5 billion, up from $8.8 billion last year, and its fiscal 2025 adjusted net income was $15.02 billion, up from $14.2 billion last year.
TD also announced it was increasing its quarterly dividend by three cents to $1.08 per share.
“TD had a strong fourth quarter, delivering strong fee and trading revenue in our marketplace business, as well as year-over-year volume growth in Canadian private and commercial banking, capping a strong year of performance,” CEO Raymond Chun said in a statement Thursday. “We have taken decisive action throughout 2025 to strengthen our bank and shape TD for the future.”
TD's U.S. Retail segment posted adjusted net income of approximately $1 billion, up $227 million, or 29 percent, from the year-ago fourth quarter.
John Aiken, an analyst at Jefferies Inc., said in a note that he is impressed by TD's “robust performance” in the U.S. retail segment.
Net income in the asset management and insurance segment increased year-over-year by $350 million to $699 million, while wholesale banking net income was $494 million, up $259 million from a year ago.
The bank also continued to take steps to “reduce its cost base and achieve greater efficiencies” in the fourth quarter, TD said, after taking on $190 million in restructuring charges. The restructuring program began in the second quarter.
“In connection with this program, the bank incurred restructuring costs of $686 million before taxes during the year ended October 31, 2025, which were primarily related to employee severance and other personnel-related costs, asset impairments and other rationalization actions, including certain business wind-downs, as well as
optimization,” the message says.
The Bank expects to incur additional restructuring charges in the next quarter of approximately $125 million before taxes to complete its restructuring program for a total charge of approximately $825 million before taxes.
“The restructuring program resulted in approximately $100 million in pre-tax savings in 2025,” TD said. “The bank expects the program to generate total annual pre-tax savings of approximately $750 million, including savings from an approximately three percent workforce reduction.”
In September, Canada's second-largest bank said it was aiming to cut billions of dollars in costs and boost growth while “getting back to winning ways.”
The bank, which suspended its medium-term targets in December last year, said it expects to achieve a return on equity (ROE) of 13 percent, increase earnings per share (EPS) by six to eight percent and reduce cost growth to three to four percent in fiscal 2026.
By fiscal 2029, the company expects return on equity to increase to 16 percent and earnings per share growth of seven to 10 percent.
Those goals are similar to those TD had before it suspended them last December, when it undertook a “broad and detailed” review of its strategy after being fined about $3.1 billion and ordered in October to limit the expansion of its retail banking business by the U.S. Justice Department and other regulators for failing to control money laundering activity at its branches.
In September, the bank said it wants to accelerate its growth, increase digital sales, improve the productivity of its branch network, expand sales capabilities in key segments and accelerate fee income growth in its wealth, insurance and securities segments.
• Email: [email protected]
