Toronto Dominion Reports CAD4.2B Q1 Profit and Launches $7B Share Buyback
Toronto Dominion completed an $8 billion share buyback in January and launched a new $7 billion program, repurchasing 84 million shares and guiding toward a 13% CET1 ratio by H2 FY2027. The bank delivered record Q1 earnings of CAD 4.2 billion, EPS 2.44, ROE 14.2%, with revenue up 11% and pre-tax profit up 19%.
1. Capital Return Programs
Toronto Dominion completed an $8 billion buyback in January and launched a new $7 billion program, repurchasing approximately 84 million shares in Q1. Management reiterated its aim to manage toward a 13% CET1 ratio by the second half of fiscal 2027, noting a Q1 CET1 of 14.5%.
2. Q1 Financial Metrics
Net earnings reached CAD 4.2 billion with EPS of CAD 2.44 and ROE of 14.2%, marking record quarterly profits. Revenue rose 11% year-over-year and pre-tax, pre-provision profit increased 19%, while expenses grew 7% during the period.
3. Restructuring and Strategic Investments
The bank recorded CAD 200 million of restructuring charges in Q1, completing a CAD 886 million program that will yield CAD 775 million of annual pre-tax savings. Management targets CAD 2.2–2.5 billion of medium-term cost reductions and plans approximately CAD 500 million of AML remediation spending in FY26, plus CAD 1 billion of AI-driven value.
4. Segment Highlights
Canadian personal and commercial banking posted record revenue, deposits up 3%, and loan volumes up 5%, with stable net interest margin. U.S. banking earnings rose 22% on a 3.38% NIM, wealth management ETF assets exceeded CAD 31 billion, and wholesale banking delivered record revenue driven by markets and corporate activity.