Toronto-Dominion Bank Posts CAD 4.2B Q1 Profit, Completes $8B Buyback
Toronto-Dominion Bank posted FQ1 net earnings of CAD 4.2 billion (EPS CAD 2.44) on an 11% revenue rise and 19% adjusted pre-tax profit increase, boosting ROE to 14.2%. The bank completed an $8 billion share buyback, launched a $7 billion program and reduced its CET1 ratio to 14.5%.
1. Q1 Financial Performance
Toronto-Dominion Bank reported net earnings of CAD 4.2 billion in FQ1 2026, translating to EPS of CAD 2.44. Revenue rose 11% year-over-year to drive a 19% increase in adjusted pre-tax, pre-provision profit and lift return on equity to 14.2%, with record volume growth in Canadian deposits, loans and earnings.
2. Capital Return Initiatives
The bank completed an $8 billion share buyback by repurchasing approximately 84 million shares in January and immediately launched a new $7 billion program. These repurchases reduced the common equity Tier 1 ratio to 14.5%, with management targeting a 13% ratio by the second half of FY2027.
3. Strategic Investments and Outlook
TD plans to invest approximately CAD 500 million in US anti-money laundering remediation during 2026 and aims to deliver CAD 1 billion in medium-term value from AI deployments. Credit provisions held at 43 basis points, and the bank maintains over CAD 500 million in reserves to address policy and trade uncertainties.