This quarterly Earnings News Release (ENR) should be read in conjunction with the Bank's unaudited fourth quarter 2025 consolidated financial results for the year ended October 31, 2025, included in this Earnings News Release and the audited 2025 Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on TD's website at http://www.td.com/investor/. This ENR is dated December 3, 2025. Unless otherwise indicated, all amounts are expressed in Canadian dollars and have been primarily derived from the Bank's Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been revised to conform to the presentation adopted in the current period. Additional information including the 2025 MD&A relating to the Bank is available on the Bank's website at http://www.td.com, as well as on SEDAR+ at http://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's (SEC) website at http://www.sec.gov (EDGAR filers section).
Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures. For additional information about the Bank's non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document.
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year:
Reported diluted earnings per share were $1.82, compared with $1.97.
Adjusted diluted earnings per share were $2.18, compared with $1.72.
Reported net income was $3,280 million, compared with $3,635 million.
Adjusted net income was $3,905 million, compared with $3,205 million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last year:
Reported diluted earnings per share were $11.56, compared with $4.72.
Adjusted diluted earnings per share were $8.37, compared with $7.81.
Reported net income was $20,538 million, compared with $8,842 million.
Adjusted net income was $15,025 million, compared with $14,277 million.
FOURTH QUARTER ADJUSTMENTS, CHARGE (GAIN) FOR ITEMS OF NOTE:The fourth quarter reported earnings figures included the following items of note:
Amortization of acquired intangibles of $34 million ($26 million after-tax or 1 cent per share), compared with $60 million ($52 million after-tax or 3 cents per share) in the fourth quarter last year.
Acquisition and integration charges related to the Cowen acquisition of $44 million ($35 million after‑tax or 2 cents per share), compared with $82 million ($64 million after‑tax or 4 cents per share) in the fourth quarter last year.
Impact from the terminated First Horizon (FHN) acquisition-related capital hedging strategy of $49 million ($36 million after-tax or 2 cents per share), compared with $59 million ($45 million after-tax or 2 cents per share) in the fourth quarter last year.
Balance sheet restructuring of $485 million ($388 million after-tax or 23 cents per share) in respect of U.S. Retail and other activities, compared with $311 million ($234 million after‑tax or 13 cents per share) in respect of U.S. Retail activities, in the fourth quarter last year.
Restructuring charges of $190 million ($140 million after‑tax or 8 cents per share).
TORONTO, Dec. 4, 2025 /PRNewswire/ -- TD Bank Group ("TD" or the "Bank") today announced its financial results for the fourth quarter ended October 31, 2025. Reported earnings were $3.3 billion, down 10% compared with the fourth quarter last year, and adjusted earnings were $3.9 billion, up 22%.
"TD had a strong fourth quarter, delivering robust fee and trading income in our markets-driven businesses as well as volume growth year-over-year in Canadian Personal and Commercial Banking, capping a year of strong performance," said Raymond Chun, Group President and Chief Executive Officer, TD Bank Group. "Throughout 2025, we took decisive action to strengthen our bank and shape TD for the future. Together, colleagues are driving a clear strategy to build deeper relationships and run a simpler and faster bank with disciplined execution to exceed our clients' expectations and create value for our shareholders."
Canadian Personal and Commercial Banking delivered record revenue, deposit, and loan volumesCanadian Personal and Commercial Banking net income was $1,865 million, an increase of 2% compared with the fourth quarter last year, reflecting higher pre-tax, pre-provision earnings (PTPP)1,2, an increase of 6% year-over year, partially offset by higher provisions for credit losses (PCL). Revenue was a record $5,305 million, an increase of 5% year-over-year, primarily reflecting record loan and deposit volume growth.
Canadian Personal Banking delivered a record year in digital sales for day-to-day banking products, and a record fourth quarter in Real Estate Secured Lending originations, driven by speed and specialization. The Canadian Personal Bank saw continued momentum in client referrals to Wealth, delivering record referrals this year. This quarter, Canadian Business Banking reported strong loan growth from commercial lending and record fourth quarter retail auto originations, with approximately 90% in super prime and prime segments. Small Business Banking continued to deliver strong customer acquisition, supported by compelling offer campaigns and active front-line engagement.
U.S. Retail sustained business momentum and continued to execute against critical deliverablesU.S. Retail reported net income was $719 million (US$520 million), up 31% (29% in U.S. dollars) year-over-year, excluding contributions of $154 million (US$114 million) in the fourth quarter last year from the Bank's investment in The Charles Schwab Corporation. This primarily reflects the impact of U.S. balance sheet restructuring activities, lower PCL, and the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program in the fourth quarter last year, partially offset by higher governance and control investments. On an adjusted basis, net income was $1,007 million (US$726 million), up 29% (27% in U.S. dollars), compared with the fourth quarter last year, primarily reflecting the impact of U.S. balance sheet restructuring activities, and lower PCL, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation.
This quarter, U.S. Retail sustained its momentum with growth in core lending portfolios3, achieving its highest Bankcard acquisition quarter in seven years, and strong year-over-year client assets growth in U.S. Wealth. TD Bank ranked No.1 for the ninth consecutive year in total number of approved U.S. Small Business Administration loans in its Maine to Florida footprint4. In addition, the Bank earned the 2025 Great Places to Work Certification™ for the tenth year in a row5.
Wealth Management and Insurance results driven by record Wealth earnings and assetsWealth Management and Insurance net income was $699 million, an increase of $350 million year-over-year, driven by record earnings in Wealth Management and lower losses from catastrophe claims in Insurance.
This quarter, Wealth Management continued to drive growth with record sales of $1.6 billion in ETFs, trades per day up 37% year-over-year, and total assets exceeding a record $1.3 trillion. TD Advice sustained its momentum, with strong asset growth in Financial Planning. TD Insurance launched a next generation usage-based insurance program and mobile app that offers proactive driving insights and personalized pricing to reward safe driving.
Wholesale Banking delivered record revenue and net incomeWholesale Banking reported net income of $494 million for the quarter, an increase of $259 million year-over-year, primarily reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses. On an adjusted basis, net income was a record $529 million, an increase of 77% year-over-year. Revenue for the quarter was a record $2,200 million, an increase of 24% year-over-year, driven by broad-based strength across Global Markets, and Corporate and Investment Banking.
This quarter, TD Securities was named Canada's Best FX Bank at the 2025 Euromoney Foreign Exchange Awards, recognized for its innovation and client-focused approach to delivering seamless currency solutions6. In addition, TD Cowen advanced three places to No.6 in the U.S. Corporate Access 2025 Extel Survey, and earned the No.1 ranking in the Healthcare sector7.
CapitalTD's Common Equity Tier 1 Capital ratio was 14.7%.
Conclusion"As we enter fiscal 2026, TD is well-positioned to navigate changing economic dynamics and support the aspirations and needs of our clients. With deep roots in markets across Canada, the U.S. and increasingly around the world, we will continue to invest in our businesses, innovate for our clients, and contribute to the communities and economies we support. I want to thank our more than 100,000 colleagues for their tremendous efforts and unwavering commitment to our clients," said Chun.
The foregoing contains forward-looking statements. Refer to the "Caution Regarding Forward-Looking Statements" on page 3.
__________________________
1
PTPP is a non-GAAP financial measure, calculated by subtracting Canadian Personal and Commercial Banking segment's reported non-interest expenses from reported revenue. Reported revenue, Q4 2025: $5,305 million, Q4 2024: $5,064 million. Reported non-interest expenses, Q4 2025: $2,178 million, Q4 2024: $2,102 million. PTPP, Q4 2025: $3,127 million, Q4 2024: $2,962 million.
2
For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document.
3
Core loan growth is defined as growth in average loan volumes excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program
4
U.S. Small Business Administration 7(a) and 504 Lender Report, November 2025
5
Great Place To Work® Certified Company July 2025-July 2026
6
Euromoney Canada's Best Foreign Exchange 2025 Award
7
2025 Extel Survey for Corporate Access
Caution Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management's Discussion and Analysis (2025 MD&A) in the Bank's 2025 Annual Report under the heading "Economic Summary and Outlook", under the headings "Key Priorities for 2026" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, and in other statements regarding the Bank's objectives and priorities for 2026 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, targets and commitments, the Bank's anticipated financial performance and the outlook for the Bank's operations or the Canadian, U.S. and global economies.
Forward-looking statements are typically identified by words such as "will", "would", "should", "suggest", "seek", "believe", "expect", "anticipate", "intend", "ambition", "strive", "confident", "estimate", "forecast", "outlook", "plan", "goal", "commit", "target", "objective", "timeline", possible", "potential", "predict", "project", "foresee", "may", and "could" and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties, many of which are beyond the Bank's control and the effects of which can be difficult to predict, may cause actual results to differ materially from the expectations, predictions, forecasts, projections, estimates, targets, or intentions expressed in the forward-looking statements. Examples of such risk factors include: general business and economic conditions in the regions in which the Bank operates; geopolitical risk (including policy, trade and tax-related risks and the potential impact of any new or elevated tariffs or any retaliatory tariffs); inflation, interest rates and recession uncertainty; risks associated with the remediation of the Bank's U.S. Bank Secrecy Act (BSA)/anti-money laundering (AML) program and Enterprise AML program; regulatory oversight and compliance risk; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; risks associated with the insured deposit account agreement between the Bank and The Charles Schwab Corporation; technology and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank's technologies, systems and networks, those of the Bank's customers (including their own devices), and third parties providing services to the Bank; data risk; model risk; external fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including consumer protection laws and regulations, tax laws, capital guidelines and liquidity regulatory guidance; environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; ability of the Bank to attract, develop, and retain key talent; changes in foreign exchange rates, interest rates, credit spreads, equity prices and commodity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency, the value and market price of the Bank's common shares and other securities may be impacted by market conditions and other factors; the interconnectivity of financial institutions, including existing and potential international debt crises; increased funding costs and market volatility due to market illiquidity and competition for funding; and critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. For more detailed information, please refer to the "Risk Factors that May Affect Future Results" section of the 2025 MD&A, and the sections related to strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, compliance, financial crime, reputational, environmental and social risk in the "Managing Risk" section of the 2025 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings "Significant Events" or "Update on the Remediation of the U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program and Enterprise AML Program" in the relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank's forward-looking statements.
Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 MD&A under the headings "Economic Summary and Outlook" and "Significant Events", under the headings "Key Priorities for 2026" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable).
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.
This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release.
TABLE 1: FINANCIAL HIGHLIGHTS
(millions of Canadian dollars, except where noted)
As at or for the three months ended
As at or for the twelve months ended
October 31
July 31
October 31
October 31
October 31
2025
2025
2024
2025
2024
Results of operations
Total revenue, reported
$
15,494
$
15,297
$
15,514
$
67,777
$
57,223
Total revenue, adjusted1
16,028
15,614
14,897
61,810
56,789
Provision for (recovery of) credit losses
982
971
1,109
4,506
4,253
Insurance services expenses (ISE)
1,602
1,563
2,364
6,089
6,647
Non-interest expenses, reported
8,808
8,522
8,050
33,539
35,493
Non-interest expenses, adjusted1
8,540
8,124
7,731
32,555
29,148
Net income, reported
3,280
3,336
3,635
20,538
8,842
Net income, adjusted1
3,905
3,871
3,205
15,025
14,277
Financial positions (billions of Canadian dollars)
Total loans net of allowance for loan losses
$
953.0
$
936.1
$
949.5
$
953.0
$
949.5
Total assets
2,094.6
2,035.2
2,061.8
2,094.6
2,061.8
Total deposits
1,267.1
1,256.9
1,268.7
1,267.1
1,268.7
Total equity
127.8
125.4
115.2
127.8
115.2
Total risk-weighted assets (RWA)2
636.4
627.2
630.9
636.4
630.9
Financial ratios
Return on common equity (ROE), reported3
10.7
%
11.3
%
13.4
%
17.8
%
8.2
%
Return on common equity, adjusted1
12.8
13.2
11.7
12.9
13.6
Return on tangible common equity (ROTCE)1,3
12.9
13.6
17.8
21.9
11.2
Return on tangible common equity, adjusted1
15.4
15.8
15.4
15.8
18.0
Efficiency ratio, reported3
56.8
55.7
51.9
49.5
62.0
Efficiency ratio, adjusted, net of ISE1,3,4
59.2
57.8
61.7
58.4
58.1
Provision for (recovery of) credit losses as a % of net
average loans
0.41
0.41
0.47
0.47
0.46
Common share information, reported (Canadian dollars)
Per share earnings (loss)
Basic
$
1.82
$
1.89
$
1.97
$
11.57
$
4.73
Diluted
1.82
1.89
1.97
11.56
4.72
Dividends per share
1.05
1.05
1.02
4.20
4.08
Book value per share3
68.78
67.13
59.59
68.78
59.59
Closing share price (TSX)5
115.16
100.92
76.97
115.16
76.97
Shares outstanding (millions)
Average basic
1,698.2
1,716.7
1,748.2
1,726.3
1,758.8
Average diluted
1,701.5
1,718.9
1,749.3
1,728.0
1,760.0
End of period
1,689.5
1,707.2
1,750.1
1,689.5
1,750.1
Market capitalization (billions of Canadian dollars)
$
194.6
$
172.3
$
134.7
$
194.6
$
134.7
Dividend yield3
3.9
%
4.4
%
5.0
%
4.6
%
5.1
%
Dividend payout ratio3
57.6
55.4
51.8
36.2
86.1
Price-earnings ratio3
10.0
8.6
16.3
10.0
16.3
Total shareholder return (1 year)3
56.7
30.0
4.5
56.7
4.5
Common share information, adjusted (Canadian dollars)1
Per share earnings
Basic
$
2.19
$
2.20
$
1.72
$
8.38
$
7.82
Diluted
2.18
2.20
1.72
8.37
7.81
Dividend payout ratio
47.9
%
47.5
%
59.2
%
50.0
%
52.1
%
Price-earnings ratio
13.8
12.8
9.9
13.8
9.9
Capital Ratios2
Common Equity Tier 1 (CET1) Capital ratio
14.7
%
14.8
%
13.1
%
14.7
%
13.1
%
Tier 1 Capital ratio
16.4
16.5
14.8
16.4
14.8
Total Capital ratio
18.4
18.4
16.8
18.4
16.8
Leverage ratio
4.6
4.6
4.2
4.6
4.2
Total Loss Absorbing Capacity (TLAC) ratio
31.8
30.9
28.7
31.8
28.7
TLAC Leverage ratio
8.9
8.7
8.1
8.9
8.1
1
The Toronto-Dominion Bank ("TD" or the "Bank") prepares its Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as the "reported" results. The Bank also utilizes non-GAAP financial measures such as "adjusted" results and non-GAAP ratios to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for "items of note". Refer to the "How We Performed" section of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
2
These measures have been included in this document in accordance with the Office of the Superintendent of Financial Institutions Canada's (OSFI's) Capital Adequacy Requirements, Leverage Requirements, and TLAC guidelines. Refer to the "Capital Position" section in the Bank's 2025 MD&A for further details.
3
For additional information about this metric, refer to the Glossary in the Bank's 2025 MD&A, which is incorporated by reference.
4
Efficiency ratio, adjusted, net of ISE is calculated by dividing adjusted non-interest expenses by adjusted total revenue, net of ISE. Adjusted total revenue, net of ISE, Q4 2025: $14,426 million, Q3 2025: $14,051 million, Q4 2024: $12,533 million, 2025: $55,721 million, 2024: $50,142 million.
5
Toronto Stock Exchange (TSX) closing market price.
STRATEGIC REVIEW
In fiscal year 2025, the Bank conducted a comprehensive review of its businesses and functions to assess the Bank's positioning, performance, and growth opportunities. This review culminated in a new enterprise strategy that defines the path forward for the Bank. The strategy focuses on deepening client relationships, driving market leadership, and scaling profitably within the Bank's established risk appetite. Also as part of this review, the Bank reaffirmed its commitment to enhancing governance and control functions including its U.S. Bank Secrecy Act (BSA) and Anti‑Money Laundering (AML) compliance programs (collectively, the "U.S. BSA/AML program") compliance remediation program.
The Bank has, as part of this strategic review, identified opportunities to accelerate growth, including deepening relationships, evolving digital capabilities, allocating capital to high return businesses, structurally reducing costs, increasing fee income, and modernizing infrastructure and processes.
The resulting strategy is intended to deliver durable earnings growth and premium ROE, creating long-term value for the Bank's shareholders within its existing risk appetite. The Bank's ability to achieve these objectives over the medium-term is subject to inherent risks and uncertainties, as discussed in the "Risk Factors That May Affect Future Results" section of the Bank's 2025 MD&A, and others as noted in the "Caution Regarding Forward‑Looking Statements" section of this document.
The Bank's medium-term strategy is anchored in the three strategic pillars and corresponding objectives introduced at its 2025 Investor Day.
Deeper Relationships
Deeper Share of Wallet: Become Canada's leading relationship bank, increasing client depth across TD's footprint by putting clients at the centre, and seamlessly delivering products and services across channels
Deeper Digital Engagement: Transform distribution by scaling digital leadership across businesses and evolving branches into advice centres, while adding specialist capabilities and sales capacity through frontline growth
Deeper Fee Income: Enhance earnings durability by driving profitable growth across the Wealth Management and Insurance, and Wholesale Banking business segments, as well as the Bank's commercial banking business in Canada and the United States
Simpler & Faster
Simpler & Faster Client Experiences: Become a leader in client experience in Canada and the United States, with a focus on making processes simpler and faster
Simpler & Faster Operating Model: Evolve the operating model to reduce management layers, decrease complexity, and speed up decision making while shifting culture towards more leadership accountability
Simpler & Faster Technology, Leveraging Artificial Intelligence (AI): Enhance technology and data capabilities to ensure platforms are scalable, efficient, and resilient, while capturing revenue and cost efficiencies through the adoption of AI
Disciplined Execution
Disciplined Governance & Controls: Continue to invest to evolve governance, risk and control functions in line with the Bank's scale, complexity, and regulatory requirements
Disciplined Cost Management: Sustainably lower the Bank's expense base by delivering meaningful cost savings over the medium-term through reimagining processes, transforming distribution, and enabling technology and AI deployment
Disciplined Capital Management: Deploy capital with greater discipline to drive franchise leadership and scale, while delivering premium returns, including uplifting returns across U.S. Retail and Wholesale Banking
In conjunction with its strategy, the Bank has established Bank-wide targets8 including the following:
Fiscal Year 2026 Targets8
~13%
Adj.9 ROE
6-8%
Y/Y Adj.9 EPSGrowth
Positive
Adj.9 OperatingLeverage10
13%+
CET1 Ratio11
Medium-Term (Fiscal Year 2029) Targets8
~16%
Adj.9 ROE
7-10%
Adj.9 EPS Growth
Positive
Adj.9 OperatingLeverage10
Strong
CET1 Ratio
40-50%
DividendPayout Ratio12
__________________________
8
The Bank's fiscal 2026 and medium-term financial targets are based on forward-looking assumptions that have inherent risks and uncertainties. Results may vary depending on actual economic conditions, including the level of unemployment, interest rates, and economic growth or contraction, the operating environment, including regulatory requirements, political environment, and competitive landscape, and the Bank's assumptions on future business performance, including credit conditions and performance, inclusive of policy and trade uncertainty and borrower or industry specific credit factors and conditions, and foreign exchange impact. These assumptions are subject to inherent uncertainties and may vary based on factors outside the Bank's control, including those set out at the beginning of this document in the "Caution Regarding Forward Looking Statements" section. Refer to the "Risk Factors That May Affect Future Results" section of the Bank's 2025 MD&A for additional information about risks and uncertainties that may impact the Bank's estimates.
9
The Bank prepares its consolidated financial statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as the "reported" results. The Bank also utilizes non-GAAP financial measures such as "adjusted" results (i.e., reported results excluding "items of note") and non-GAAP ratios to assess each of its businesses and measure overall Bank performance. The Bank believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank's performance. Non-GAAP financial measures and non-GAAP ratios used in this presentation are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. Refer to "How We Performed" section of this document, for further explanation, reported basis results, a list of the items of note, and a reconciliation of adjusted to reported results.
10
Operating leverage is a non-GAAP measure. At the total Bank level, TD calculates operating leverage as the difference between the % change in adjusted revenue (for U.S. Retail in source currency) net of ISE, and adjusted expenses (for U.S. Retail in US$) grossed up by the retailer program partners' share of PCL for the Bank's U.S. strategic card portfolio. Collectively, these adjustments provide a measure of operating leverage that management believes is more reflective of underlying business performance.
11
Calculated in accordance with the OSFI's Capital Adequacy Requirements guideline.
12
For additional information about this metric, refer to the Glossary of the Bank's 2025 MD&A, which is incorporated by reference.
SIGNIFICANT EVENTS
a) Sale of Schwab Shares On February 12, 2025, the Bank sold its entire remaining equity investment in The Charles Schwab Corporation ("Schwab") through a registered offering and share repurchase by Schwab. Immediately prior to the sale, TD held 184.7 million shares of Schwab's common stock, representing 10.1% economic ownership. The sale of the shares resulted in proceeds of $21.0 billion (US$14.6 billion) and the Bank recognized a net gain on sale of $8.6 billion (US$5.8 billion). This gain is net of the release of related cumulative foreign currency translation from accumulated other comprehensive income (AOCI), the release of AOCI on designated net investment hedging items, direct transaction costs, and taxes. The Bank also recognized $184 million of underwriting fees in its Wholesale segment as a result of TD Securities acting as a lead bookrunner on the transaction.
The transaction increased CET1 capital by 238 basis points (bps). The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale. The Bank continues to have a business relationship with Schwab through the insured deposit account agreement ("Schwab IDA Agreement").
b) Restructuring ChargesThe Bank continued to undertake certain measures in the fourth quarter of 2025 to reduce its cost base and achieve greater efficiency. In connection with this program, the Bank incurred $686 million pre-tax of restructuring charges during the year ended October 31, 2025, which primarily related to employee severance and other personnel-related costs, asset impairment and other rationalization, including certain business wind-downs, and real estate optimization. Next quarter, the Bank expects to incur additional restructuring charges of approximately $125 million pre-tax, and to conclude the restructuring program with total restructuring charges of approximately $825 million pre-tax. The restructuring program generated savings of approximately $100 million pre-tax in 2025. The Bank expects the program to generate total pre-tax fully realized annual program savings of approximately $750 million, including savings from an approximate 3% workforce reduction13.
UPDATE ON THE REMEDIATION OF THE U.S. BANK SECRECY ACT/ANTI-MONEY LAUNDERING PROGRAM AND ENTERPRISE AML PROGRAM
As previously disclosed, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a resolution (the "Global Resolution") of previously disclosed investigations related to its U.S. BSA/AML program. The Bank and certain of its U.S. subsidiaries consented to orders with the Office of the Comptroller of the Currency ("OCC"), the Federal Reserve Board ("FRB"), and the Financial Crimes Enforcement Network ("FinCEN") and entered into plea agreements with the Department of Justice ("DOJ"), Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney's Office for the District of New Jersey. Details of the Global Resolution include: (i) a total payment of US$3.088 billion (C$4.233 billion), all of which was provisioned during the 2024 fiscal year; (ii) TD Bank, N.A. ("TDBNA") pleading guilty to one count of conspiring to fail to maintain an adequate AML program, failing to file accurate currency transaction reports ("CTRs") and launder money and TD Bank US Holding Company ("TDBUSH") pleading guilty to two counts of failing to maintain an adequate AML program and failing to file accurate CTRs; (iii) requirements to remediate the Bank's U.S. BSA/AML program; (iv) a requirement to prioritize the funding and staffing of the remediation, which includes Board certifications for dividend distributions from certain of the Bank's U.S. subsidiaries to the Bank; (v) formal oversight of the U.S. BSA/AML remediation through an independent compliance monitorship; (vi) a prohibition against the average combined total assets of TD's two U.S. banking subsidiaries (TDBNA and TD Bank USA, N.A.) (collectively, the "U.S. Bank") exceeding US$434 billion (representing the combined total assets of the U.S. Bank as at September 30, 2024) (the "Asset Limitation"), and if the U.S. Bank does not achieve compliance with all actionable articles in the OCC consent orders (and for each successive year that the U.S. Bank remains non-compliant), the OCC may require the U.S. Bank to further reduce total consolidated assets by up to 7%; (vii) the U.S. Bank being subject to OCC supervisory approval processes for any additions of new bank products, services, markets, and stores prior to the OCC's acceptance of the U.S. Bank's improved AML policies and procedures, to ensure the AML risk of new initiatives is appropriately considered and mitigated; (viii) requirements for the Bank and TD Group U.S. Holdings, LLC ("TDGUS") to retain a third party to assess the effectiveness of the corporate governance and U.S. management structure and composition to adequately oversee U.S. operations; (ix) requirements to comply with the terms of the plea agreements with the DOJ during a five-year term of probation (which could be extended as a result of the Bank failing to complete the compliance undertakings, failing to cooperate or to report alleged misconduct as required, or committing additional crimes); * an ongoing obligation to cooperate with DOJ investigations; and (xi) an ongoing obligation to report evidence or allegations of violations by the Bank, its affiliates, or their employees that may be a violation of U.S. federal law. The full terms of the consent orders and plea agreements are available on the Bank's issuer profile on SEDAR+ at www.sedarplus.com.
The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting the requirements to remediate the Bank's U.S. BSA/AML program. In addition, the Bank is also undertaking remediation of the Bank's enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs ("Enterprise AML Program").
For additional information on the risks associated with the remediation of the Bank's U.S. BSA/AML program and the Bank's Enterprise AML Program, see the "Risk Factors That May Affect Future Results, Remediation of the Bank's U.S. BSA/AML Program and Enterprise AML Program" section of the Bank's 2025 MD&A.
Update on the Remediation of the U.S. Bank Secrecy Act/Anti-Money Laundering Program and Enterprise AML ProgramThe Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. As at December 3, 2025, the Bank has completed the majority of its management remediation actions (the term "management remediation actions" is not a regulatory definition and is considered by the Bank to consist of the root cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing and implementation of controls, as well as the hiring of resources); however, significant work and important milestones remain for calendar 2026 and calendar 2027 including the Suspicious Activity Report lookback per the OCC consent order which management expects to complete in calendar 2027. For fiscal 2026, the Bank continues to expect U.S. BSA/AML remediation and related governance and control investments of approximately US$500 million pre-tax14. All management remediation actions will be subject to demonstrated sustainability and validation by the Bank's internal audit function (with such activities currently planned for calendar 2026 and calendar 2027), as well as the review by the appointed monitor, and, ultimately, the review and approval of the Bank's U.S. banking regulators and the DOJ. Following such independent reviews, testing, and validation, there could be additional management remediation actions that would take place after calendar 2027 in which case the overall remediation timeline may be extended. In addition, as the Bank undertakes the lookback reviews, the Bank may be required to further expand the scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The following graph illustrates the Bank's expected remediation plan and progress on a calendar year basis, based on its work to date.
The Bank's remediation timeline is based on the Bank's current plans, as well as assumptions related to the duration of planning activities, including the completion of external benchmarking and lookback reviews. The Bank's ability to meet its planned remediation milestones assumes that the Bank will be able to successfully execute against its U.S. BSA/AML remediation program plan, which is subject to inherent risks and uncertainties including the Bank's ability to attract and retain key employees, the ability of third parties to deliver on their contractual obligations, the successful development and implementation of required technology solutions, and data availability to complete the required lookback reviews. Furthermore, the execution of the U.S. BSA/AML remediation plan, including these planned milestones, will not be entirely within the Bank's control because of various factors such as (i) the requirement to obtain regulatory approval or non-objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators and/or the monitor. As of the date hereof, the Bank believes that it and its applicable U.S. subsidiaries have taken such actions as are required of them to date under the terms of the consent orders and plea agreements and is not aware of them being in breach of the same. For information about the Bank's AML governance framework, see the "Managing Risk" section of this MD&A.
While substantial work remains, the Bank made progress on remediating and strengthening its U.S. BSA/AML program over the first three quarters of fiscal 2025, including:
the DOJ and FinCEN approved the use of the same Independent Compliance Monitor on a go-forward basis;
improvements to transaction monitoring capabilities with the implementation of a new transaction monitoring system, the introduction of all planned scenarios into that transaction monitoring system as set out in the Bank's U.S. BSA/AML program remediation plan, and the deployment of the first phase of machine learning analysis in this system which will help improve the effectiveness and efficiency of the Bank's investigative teams;
enhanced and streamlined investigation practices including the implementation of technology which centralizes all new investigative cases in a single system to provide unified data sets to help manage financial crime risk with a single view of the customer;
implemented enhancements to cash deposit requirements at stores;
updated and enhanced policies, including those with respect to Know Your Customer (KYC) activities, and introducing revised escalation standards across all of U.S. Financial Crime Risk Management (FCRM);
introduced new reporting on workloads that has improved the Bank's ability to forecast resource needs;
strengthened controls and assessments relating to new business initiatives, including the establishment of a new Financial Crimes Risk Management subcommittee focused on reviewing and assessing new business products, services and geographies; and
the launch of focused training for the first and second lines of defense relating to suspicious customer activity for certain commercial products and services.
Specifically in the fourth quarter of fiscal 2025, the Bank made the following progress:
implemented an enhanced, streamlined system and end-to-end process for submitting unusual transaction referrals for frontline colleagues to improve the accuracy and efficiency by which the Bank submits unusual transaction reports;
deployed further machine learning enhancements to the Bank's transaction monitoring system to improve the efficacy and accuracy of the Bank's U.S. BSA/AML program;
deployed advanced risk detection capability to help identify and mitigate a high-risk criminal activity; and
made good progress against the lookback reviews required under the OCC consent order.
Going forward, the Bank's focus will be on continuing to remediate and strengthen its U.S. BSA/AML program, including:
continue enhancing its financial crime risk assessment methodologies and processes;
the multi-phase deployment of a new KYC strategic platform that will provide a single view of the customer to improve risk assessment capabilities;
further deployments of machine learning and specialized AI;
continued progress on lookback reviews as required under the OCC and FinCEN consent orders;
continued data enhancements with the deployment of dedicated FCRM data environments which will create a single source of truth in support of advanced detection capabilities; and
continued training and development of colleagues.
To help ensure that the Bank can continue to support its customers' financial needs in the U.S. while not exceeding the limitation on the combined total assets of the U.S. Bank, the Bank executed multiple U.S. balance sheet restructuring actions in fiscal 2025. Refer to "Update on U.S. Balance Sheet Restructuring" in the U.S. Retail segment section for additional information on these actions. For additional information about expenses associated with the Bank's U.S. BSA/AML program remediation activities, refer to the U.S. Retail segment section.
__________________________
13
The Bank's expectations regarding the restructuring program are subject to inherent uncertainties and are based on the Bank's assumptions regarding certain factors, including rate of natural attrition, talent re-deployment opportunities, years-of-service, execution timing of actions, decisions to expand on or reduce the restructuring actions (e.g., scope of real estate optimization, additional rationalizations), and foreign exchange translation impacts. Refer to the "Risk Factors That May Affect Future Results" section of the Bank's 2025 MD&A for additional information about risks and uncertainties that may impact the Bank's estimates.
14
The total amount expected to be spent on remediation and governance and control investments is subject to inherent uncertainties and may vary based on the scope of work in the U.S. BSA/AML remediation plan which could change as a result of additional findings that are identified as work progresses as well as the Bank's ability to successfully execute against the U.S. BSA/AML remediation program in accordance with the U.S. Retail segment's fiscal 2026 and medium term plan.
Strengthening of the Bank's Enterprise AML ProgramThe Bank continues to undertake remediation of the Enterprise AML Program, including a range of management remediation and enhancement actions (the term "management remediation and enhancement actions" is not a regulatory definition and is considered by the Bank to consist of root cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing, and execution of controls, as well as the hiring of resources). While the Bank has made progress on this remediation work, it is a multi-year endeavour and the remediation work remains ongoing. The timing of completion of the remediation work will not be entirely within the Bank's control, and is subject to regulatory feedback, internal review, challenge and validation. As previously disclosed, following the end of the first quarter of fiscal 2025, the Financial Transactions and Reports Analysis Centre of Canada ("FINTRAC") commenced a review of certain remediation steps that the Bank has taken to date to address the FINTRAC violations. This review is ongoing, and subject to the outcome, may result in additional regulatory actions.
The remediation and enhancement of the Enterprise AML Program is exposed to similar risks as noted in respect of the remediation of the Bank's U.S. BSA/AML Program (see also "Remediation of the U.S. BSA/AML Program" above). In particular, as the Bank continues its remediation and improvement activities of the Enterprise AML Program, it expects an increase in identification of reportable transactions and/or events, which will add to the operational backlog in the Bank's Financial Crime Risk Management (FCRM) investigations processing that the Bank currently faces, but is working towards remediating, across the Bank. In addition, on an ongoing basis, the Bank will continue to review and assess whether issues identified in one jurisdiction have an impact in other jurisdictions. Furthermore, the Bank's regulators or law enforcement agencies may identify other issues with the Bank's Enterprise AML Program, which may result in additional regulatory actions. These issues identified through the Bank's own review or by the Bank's regulators or law enforcement agencies may broaden the scope of the remediation and improvements required for the Enterprise AML Program.
While substantial work remains, the Bank made progress on remediating and strengthening the Enterprise AML Program over fiscal 2025, including the following during the first three quarters of fiscal 2025:
redesigning the FCRM organizational structure to better enable stronger collaboration, clear ownership, and a more agile response to evolving risk and regulatory expectations, including the consolidation of the Enterprise and the U.S. AML mandates under the leadership of the Global Head of FCRM;
completing a comprehensive transaction monitoring coverage assessment to identify areas requiring enhancements;
enhancing investigative processes through improved workflow and data management;
continued improvements in the Bank's process and procedural guidance, reinforced with targeted training across FCRM and individual business lines;
implementing a stronger monitoring and testing standard to improve control coverage and depth; and
launching technology initiatives to consolidate electronic document and data availability, to improve quality and timeliness of monitoring and to improve oversight of escalated AML issues.
Specifically in the fourth quarter of fiscal 2025, the Bank made the following progress:
continued improvement of the KYC controls to strengthen tracking and regulatory compliance, supporting ongoing customer due diligence efforts;
strengthened governance structures and first-line accountability in managing financial crime risks, driving cross-functional collaboration and standardized processes across KYC, Customer Exits and investigative activities;
enhanced the AML/Anti-Terrorist Finance Enterprise Policy to align with regulatory amendments; and
completed the rollout of the enhanced financial crime risk assessment methodology and related tools to strengthen identification and measurement of FCRM risks across clients, products and transactions, supported by improved data capabilities.
Going forward, the Bank's focus will be on continuing to remediate and strengthen its Enterprise AML Program:
continued enhancement and Enterprise-wide adoption of the new centralized case management tool, with the goal of strengthening oversight and investigations of identified FCRM risks;
ongoing advancement in transaction monitoring capabilities, including further refinement of customer risk rating methodologies;
continued investment in supporting advanced analytics, machine learning, and AI opportunities within FCRM; and
control enhancements from the execution of the enhanced financial crime risk assessment methodology and process.
HOW WE PERFORMED
ECONOMIC SUMMARY AND OUTLOOKThe global economy remains on track to slow in calendar 2025 with decelerating cyclical momentum reinforced by trade barriers. Higher U.S. tariffs appear likely to persist under the current administration. Inflation expectations have increased as the U.S. tariffs exert upward pressure on prices and complicate global supply chains. This puts global central banks in the challenging position of gauging whether any resulting inflation is a one-time shock or will prove persistent.
The U.S. economy has softened overall in calendar 2025, although growth has been volatile on a quarter-to-quarter basis, buffeted by swings in trade policy and the government shutdown. Smoothing through the volatility, consumer spending has slowed, and residential investment continues to contract, held back by elevated borrowing costs. Government spending is also declining, as cutbacks at the federal level and the U.S. government shutdown have temporarily restrained outlays. Business investment has managed to buck the trend, largely due to increased technology-related spending. TD Economics forecasts that a post-shutdown-related rebound in activity, lower interest rates, tax cuts, and a more business-friendly regulatory environment will lift growth back above 2% in calendar 2026.
U.S. economic data releases have been delayed due to the government shutdown, increasing uncertainty on recent economic trends. As of September 2025, hiring had lost momentum and the unemployment rate had risen to 4.4%, a new cycle high. At its latest meeting in October 2025, the Federal Reserve took further action to ensure against a slowing labour market by cutting its overnight rate by a quarter point to 3.75-4.00%. Inflation has remained somewhat elevated in recent months, but it is expected to cool after the one-time impact of tariffs has passed. TD Economics expects the Federal Reserve to lower the policy rate further over the coming months to 3.00-3.25%, close to most estimates of a "neutral" level. But the pace of interest rate cuts will depend on the evolution of the job and inflation data.
Canada's economy is estimated to have turned in a third straight year of modest economic growth in calendar 2025 as the impact of U.S. import tariffs on Canada's exports offset the boost from lower borrowing costs. The effect of elevated uncertainty around tariff policy has weakened business and consumer confidence about the future, and dampened spending. This soft hiring backdrop is expected to lift the unemployment rate from 6.9% in October 2025 to 7.3% by (calendar) year end. Immigration policy changes have also resulted in slower population and labour force growth, which is expected to limit the rise in the unemployment rate. New federal defense and infrastructure spending, an improvement in the housing market and firmer business investments are expected to drive a moderately stronger growth picture in 2026.
The Canadian central bank lowered its overnight rate to 2.25% in October 2025. Provided inflation evolves in line with the Bank's current forecast, the overnight rate is expected to remain unchanged over the next several quarters. A generally weaker U.S. dollar and a gradual improvement in Canada's economy are expected to lift the Canadian dollar. TD Economics expects the Canadian dollar to appreciate to the 73-74 U.S. cent range by mid-2026, although it is likely to be influenced by the path of U.S. trade policy.
HOW THE BANK REPORTSThe Bank prepares its Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as "reported" results.
Non-GAAP and Other Financial MeasuresIn addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios, supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as "adjusted" results, are utilized to assess the Bank's businesses and to measure the Bank's overall performance. To arrive at adjusted results, the Bank adjusts for "items of note", from reported results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted net interest margin, adjusted basic and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, and adjusted effective income tax rate. The Bank believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank's performance. Non-GAAP financial measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank's financial performance and position, and capital management measures depict the Bank's capital position, and both are explained in this document where they first appear.
U.S. Strategic CardsThe Bank's U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank's Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate's reported Net income (loss). The Net income included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements.
Investment in The Charles Schwab Corporation and Schwab IDA AgreementOn February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. For further details, refer to the "Significant Events, Sale of Schwab Shares" section of this document. The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale.
Prior to the sale, the Bank accounted for its investment in Schwab using the equity method. The U.S. Retail segment reflected the Bank's share of net income from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab. The Bank's share of Schwab's earnings available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank's 2025 Annual Consolidated Financial Statements.
Subsequent to the sale of the Bank's entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through the Schwab IDA Agreement.
On May 4, 2023, the Bank and Schwab entered into an amended Schwab IDA Agreement, with an initial expiration of July 1, 2034. Pursuant to the Schwab IDA Agreement, the Bank makes sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits are designated as floating-rate obligations. The FROA floor is set at US$60 billion.
Refer to Note 26 of the Bank's 2025 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
The following table provides the operating results on a reported basis for the Bank.
TABLE 2: OPERATING RESULTS, Reported
(millions of Canadian dollars)
For the three months ended
For the years ended
October 31
July 31
October 31
October 31
October 31
2025
2025
2024
2025
2024
Net interest income
$
8,545
$
8,526
$
7,940
$
33,062
$
30,472
Non-interest income
6,949
6,771
7,574
34,715
26,751
Total revenue
15,494
15,297
15,514
67,777
57,223
Provision for (recovery of) credit losses
982
971
1,109
4,506
4,253
Insurance service expenses
1,602
1,563
2,364
6,089
6,647
Non-interest expenses
8,808
8,522
8,050
33,539
35,493
Income before income taxes and share of net income from
investment in Schwab
4,102
4,241
3,991
23,643
10,830
Provision for (recovery of) income taxes
822
905
534
3,410
2,691
Share of net income from investment in Schwab
–
–
178
305
703
Net income (loss), reported
3,280
3,336
3,635
20,538
8,842
Preferred dividends and distributions on other equity instruments
191
88
193
565
526
Net income available to common shareholders
$
3,089
$
3,248
$
3,442
$
19,973
$
8,316
The following table provides a reconciliation between the Bank's adjusted and reported results. For further details refer to the "Significant Events" or "How We Performed" or "How Our Business Performed" sections of this document.
TABLE 3: NON-GAAP FINANCIAL MEASURES, Reconciliation of Adjusted to Reported Net Income
(millions of Canadian dollars)
For the three months ended
For the years ended
October 31
July 31
October 31
October 31
October 31
2025
2025
2024
2025
2024
Operating results, adjusted
Net interest income1,2
$
8,594
$
8,581
$
8,034
$
33,303
$
30,749
Non-interest income3
7,434
7,033
6,863
28,507
26,040
Total revenue
16,028
15,614
14,897
61,810
56,789
Provision for (recovery of) credit losses
982
971
1,109
4,506
4,253
Insurance service expenses
1,602
1,563
2,364
6,089
6,647
Non-interest expenses4
8,540
8,124
7,731
32,555
29,148
Income before income taxes and share of net income from
investment in Schwab
4,904
4,956
3,693
18,660
16,741
Provision for (recovery of) income taxes
999
1,085
695
3,975
3,355
Share of net income from investment in Schwab5
–
–
207
340
891
Net income, adjusted
3,905
3,871
3,205
15,025
14,277
Preferred dividends and distributions on other equity instruments
191
88
193
565
526
Net income available to common shareholders, adjusted
3,714
3,783
3,012
14,460
13,751
Pre-tax adjustments for items of note
Amortization of acquired intangibles6
(34)
(33)
(60)
(171)
(290)
Acquisition and integration charges related to the Schwab transaction4,5
–
–
(35)
–
(109)
Share of restructuring and other charges from investment in Schwab5
–
–
–
–
(49)
Restructuring charges4
(190)
(333)
–
(686)
(566)
Acquisition and integration-related charges4
(44)
(32)
(82)
(162)
(379)
Impact from the terminated FHN acquisition-related capital hedging strategy1
(49)
(55)
(59)
(205)
(242)
Gain on sale of Schwab shares3
–
–
1,022
8,975
1,022
Balance sheet restructuring2,3
(485)
(262)
(311)
(2,803)
(311)
Indirect tax matters2,4
–
–
(226)
–
(226)
Civil matter provision4
–
–
–
–
(274)
Federal Deposit Insurance Corporation (FDIC) special assessment4
–
–
72
–
(442)
Global resolution of the investigations into the Bank's U.S. BSA/AML program4
–
–
(52)
–
(4,233)
Less: Impact of income taxes
Amortization of acquired intangibles
(8)
(8)
(8)
(33)
(41)
Acquisition and integration charges related to the Schwab transaction
–
–
(9)
–
(23)
Restructuring charges
(50)
(85)
–
(176)
(150)
Acquisition and integration-related charges
(9)
(7)
(18)
(35)
(82)
Impact from the terminated FHN acquisition-related capital hedging strategy
(13)
(14)
(14)
(52)
(60)
Gain on sale of Schwab shares
–
–
–
407
–
Balance sheet restructuring
(97)
(66)
(77)
(676)
(77)
Indirect tax matters
–
–
(53)
–
(53)
Civil matter provision
–
–
–
–
(69)
FDIC special assessment
–
–
18
–
(109)
Total adjustments for items of note
(625)
(535)
430
5,513
(5,435)
Net income (loss) available to common shareholders, reported
$
3,089
$
3,248
$
3,442
$
19,973
$
8,316
1
After the termination of the merger agreement between the Bank and FHN on May 4, 2023, the residual impact of the strategy is reversed through net interest income (NII), Q4 2025: ($49) million, Q3 2025: ($55) million, 2025: ($205) million, Q4 2024: ($59) million, 2024: ($242) million, reported in the Corporate segment.
2
Adjusted net interest income excludes the following items of note:
i.
Balance sheet restructuring, 2025: $36 million in respect of U.S. Retail activities, reported in the U.S. Retail segment; and
ii.
Indirect tax matters, Q4 2024: $35 million, 2024: $35 million, reported in the Corporate segment.
3
Adjusted non-interest income excludes the following items of note:
i.
The Bank sold common shares of Schwab and recognized a gain on the sale, 2025: $8,975 million, Q4 2024: $1,022 million, 2024: $1,022 million, reported in the Corporate segment; and
ii.
Balance sheet restructuring, Q4 2025: $383 million, Q3 2025: $262 million, 2025: $2,665 million, Q4 2024: $311 million, 2024: $311 million in respect of U.S. Retail activities, reported in the U.S. Retail segment, and Q4 2025: $102 million, 2025: $102 million in respect of other activities, reported in the Corporate segment.
4
Adjusted non-interest expenses exclude the following items of note:
i.
Amortization of acquired intangibles, Q4 2025: $34 million, Q3 2025: $33 million, 2025: $136 million, Q4 2024: $33 million, 2024: $172 million, reported in the Corporate segment;
ii.
The Bank's own acquisition and integration charges related to the Schwab transaction, Q4 2024: $33 million, 2024: $88 million, reported in the Corporate segment;
iii.
Restructuring charges, Q4 2025: $190 million, Q3 2025: $333 million, 2025: $686 million, compared with 2024: $566 million under a previous program, reported in the Corporate segment;
iv.
Acquisition and integration-related charges, Q4 2025: $44 million, Q3 2025: $32 million, 2025: $162 million, Q4 2024: $82 million, 2024: $379 million, reported in the Wholesale Banking segment;
v.
Indirect tax matters, Q4 2024: $191 million, 2024: $191 million, reported in the Corporate segment;
vi.
Civil matter provision, 2024: $274 million, reported in the Corporate segment;
vii.
FDIC special assessment, Q4 2024: ($72) million, 2024: $442 million, reported in the U.S. Retail segment; and
viii.
Charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program, Q4 2024: $52 million, 2024: $4,233 million, reported in the U.S. Retail segment.
5
Adjusted share of net income from investment in Schwab excludes the following items of note on an after-tax basis. The earnings impact of these items was reported in the Corporate segment:
i.
Amortization of Schwab-related acquired intangibles, 2025: $35 million, Q4 2024: $27 million, 2024: $118 million;
ii.
The Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade, Q4 2024: $2 million, 2024: $21 million;
iii.
The Bank's share of restructuring charges incurred by Schwab, 2024: $27 million; and
iv.
The Bank's share of the FDIC special assessment charge incurred by Schwab, 2024: $22 million.
6
Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of acquired intangibles relating to the share of net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 4 and 5 for amounts.
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE1
(Canadian dollars)
For the three months ended
For the years ended
October 31
July 31
October 31
October 31
October 31
2025
2025
2024
2025
2024
Basic earnings per share, reported
$
1.82
$
1.89
$
1.97
$
11.57
$
4.73
Adjustments for items of note
0.37
0.31
(0.25)
(3.19)
3.09
Basic earnings per share, adjusted
$
2.19
$
2.20
$
1.72
$
8.38
$
7.82
Diluted earnings per share, reported
$
1.82
$
1.89
$
1.97
$
11.56
$
4.72
Adjustments for items of note
0.36
0.31
(0.25)
(3.19)
3.09
Diluted earnings per share, adjusted
$
2.18
$
