Core Insights - The Toronto-Dominion Bank (TD) is recognized as one of the best value stocks for long-term investment, with recent price target increases from CIBC and BMO Capital [1][2][7] Financial Performance - For fiscal Q1 2026, TD reported earnings of C$4.0 billion, marking a 45% year-over-year growth, with adjusted earnings at C$4.2 billion, up 16% year-over-year [2] - The bank achieved record net income of C$2.044 billion, a 12% increase year-over-year, driven by a 7% rise in pre-tax, pre-provision earnings and reduced credit loss provisions [3] - Q1 2026 saw the highest quarterly credit card acquisitions in over a decade, facilitated by AI tools such as Branch Virtual Assistant and agentic AI in real estate lending [3] Business Segments - TD operates through four main segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking [4]

Financial Performance - The Toronto-Dominion Bank reported net earnings of CAD 4.2 billion for FQ1 2026, with an EPS of CAD 2.44, reflecting an 11% year-over-year revenue increase and a 19% rise in adjusted pre-tax, pre-provision profit [1] - The bank achieved a return on equity of 14.2% and experienced strong volume growth in its Canadian personal and commercial banking segments, which posted record results in deposits, loans, and earnings [1] Capital Management - The bank completed an $8 billion share buyback in January and launched a new $7 billion program, repurchasing approximately 84 million shares, which led to a slight decline in the CET1 ratio to 14.5% [2] - Management aims to manage the CET1 ratio towards a target of 13% by H2 FY2027 [2] Strategic Investments - The Toronto-Dominion Bank plans to invest approximately CAD 500 million in 2026 for US anti-money laundering remediation and targets CAD 1 billion in medium-term value from AI deployments [4] - The bank is maintaining over CAD 500 million in reserves to address potential policy and trade uncertainties, with credit provisions remaining within expectations at 43 basis points [4] Business Segments - The Toronto-Dominion Bank, along with its subsidiaries, offers a variety of financial products and services across Canada, the US, and internationally, operating in four segments: Canadian Personal & Commercial Banking, US Retail, Wealth Management & Insurance, and Wholesale Banking [5]

Core Viewpoint - Toronto-Dominion Bank Inc. stock is currently priced at $97.63, reflecting a slight decrease of 0.07% in the current market session, but has seen a significant increase of 2.31% over the past month and 64.96% over the past year, raising questions about its valuation despite current performance concerns [1] Group 1: Stock Performance - The stock price of Toronto-Dominion Bank Inc. is $97.63, with a 0.07% decrease in the current session [1] - Over the past month, the stock has increased by 2.31% [1] - In the past year, the stock has surged by 64.96% [1] Group 2: P/E Ratio Analysis - The P/E ratio is a key metric for investors, comparing the current share price to the company's earnings per share (EPS) [2] - A higher P/E ratio may indicate that investors expect better future performance, potentially suggesting overvaluation, but it could also reflect optimism about future dividends [2] - Toronto-Dominion Bank Inc. has a P/E ratio of 11.56, which is lower than the industry average P/E ratio of 14.68, suggesting the stock may be undervalued or expected to perform worse than peers [3]

Group 1 - TD Bank is investing in AI across various applications, achieving $170 million in value from AI technology in 2025 [3][4] - The bank aims to reach $1 billion in annual value from AI, emphasizing a strategy of scaling AI through repeatable patterns [4][8] - The generative AI virtual assistant has been deployed in over 1,000 branches in Canada, significantly improving response times for customer inquiries [5][6] Group 2 - TD Bank plans to reduce insurance claims costs by $150 million in the medium term through AI deployment and process improvements [8] - The bank's investments are expected to cut the time for fraud detection and increase the speed and accuracy of claims resolution [8] - Traditional AI and machine learning capabilities are also a focus for TD Bank, indicating a comprehensive approach to AI integration [7]

Investor Presentation TD Bank Group – Q1 2026 Title Slide S E C T I O N O N E 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, ...

Core Insights - TD Bank Group is prioritizing its U.S. anti-money laundering (AML) remediation program, leveraging artificial intelligence (AI) and machine learning to enhance its effectiveness [1][4]. AI and AML Program - The bank has made progress on its AML program and launched a new know-your-customer (KYC) platform for business users, aimed at centralizing customer information and improving insights for AML efforts [2][3]. - AI and machine learning capabilities are being integrated into the bank's transaction monitoring system, with additional models set to be deployed in the coming quarters [4]. Financial Goals and AI Impact - TD Bank aims to achieve a medium-term value of 1 billion Canadian dollars (approximately $731 million) from AI initiatives, with a target of annualized revenue uplift and cost savings of 500 million Canadian dollars (about $365 million) each [5][10]. - The bank is accelerating AI deployments to reduce delivery costs by utilizing repeatable patterns, exemplified by the introduction of a generative AI knowledge management solution in contact centers and across branches [11]. Cost Savings and Efficiency - AI is projected to support annualized cost savings of 2.2 billion to 2.5 billion Canadian dollars (around $1.6 billion to $1.8 billion) for the bank, enhancing operational efficiency [13][14].

TD Bank Group Reports First Quarter 2026 Results Report to Shareholders • Three months ended January 31, 2026 The financial information in this document is reportedin Canadian dollars and is based onthe Bank's unaudited Interim ConsolidatedFinancial Statements prepared in accordance with International FinancialReporting Standards (IFRS) as issued by theInternational Accounting Standards Board(IASB), unless otherwise noted. Certain comparative amountshave been revised to conform with the presentationadopted ...

Core Insights - Canada's largest banks are increasing their loan loss provisions due to economic uncertainty and rising living costs affecting households and businesses [1][2] - Despite setting aside these provisions, the banks reported multi-billion-dollar profits in the latest quarter [2] Loan Loss Provisions - Royal Bank of Canada added C$1.09 billion to its loan loss provisions, up from C$1.05 billion a year earlier [8] - Scotiabank increased its provisions by C$1.176 billion, slightly higher than the previous year [8] - TD Bank topped up its provisions by C$1.04 billion, a slight decrease from the prior year [8] - CIBC set aside an additional C$568 million, down from last year [8] - National Bank's provision for credit losses was C$244 million, down from C$254 million a year earlier [9] Housing Market Insights - Canada's total mortgage debt reached nearly C$2 trillion last year, with many households expected to apply for mortgage renewals [3] - The housing market is anticipated to remain "subdued" through most of 2026, with a potential housing recession if economic conditions worsen [7] - BMO's chief risk officer noted an increase in delinquencies, indicating stress in the Canadian consumer market [4][6] Economic Conditions - Interest rates significantly impact the affordability of mortgages and loans, with the Bank of Canada's benchmark rate currently at 2.25% [9] - CIBC's chief risk officer acknowledged ongoing economic softness, with fluctuating unemployment rates and uncertainty surrounding trade agreements [10][11]

Financial Data and Key Metrics Changes - The bank reported record earnings of CAD 4.2 billion and EPS of CAD 2.44, resulting in an ROE of 14.2%, up 100 basis points year-over-year [5][75] - Total Bank PTPP increased by 19% year-over-year, with revenue growing 11% year-over-year [22] - The CET1 ratio was 14.5%, with strong organic capital accretion during the quarter [6][32] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking achieved record revenue, earnings, deposit, and loan volumes, with average deposits rising 3% year-over-year [24] - In U.S. Banking, year-over-year earnings increased by 22%, with core loans growing by 2% [26] - Wealth management and insurance delivered record earnings and assets, with Direct Investing seeing a 97 basis points revenue share growth year-over-year [29][30] Market Data and Key Metrics Changes - The bank's impaired PCLs increased, reflecting a small number of borrowers across various industries, but overall credit performance was in line with expectations [5][33] - The U.S. proprietary credit card balances rose by 15% year-over-year, indicating strong growth in that segment [10] Company Strategy and Development Direction - The bank is focused on deepening relationships, simplifying operations, and executing with discipline, with a target of achieving a 13% CET1 ratio by the second half of fiscal 2027 [8][16] - The bank is leveraging AI to enhance efficiency and reduce costs, with a target of generating $1 billion in value from AI over the medium term [14][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 targets, citing strong momentum and positive macroeconomic conditions [7][75] - The bank expects PCLs to fall within a range of 40-50 basis points for fiscal 2026, indicating a stable credit outlook [36] Other Important Information - The bank completed a CAD 8 billion share buyback and initiated a new CAD 7 billion buyback program, demonstrating a commitment to returning excess capital to shareholders [6][32] - The restructuring program concluded with total charges of CAD 886 million, expected to yield annual cost savings of CAD 775 million [23] Q&A Session Summary Question: Potential to reach 16% ROE by 2027 - Management indicated that they are ahead of schedule on cost savings and confident in achieving the 16% ROE target [39][40] Question: Focus areas for U.S. loan growth - Management highlighted strong consumer lending growth, particularly in credit cards, and noted that mid-market lending is also performing well [41][42] Question: Credit performance and macro changes - Management explained that improved unemployment and GDP numbers contributed to the performing PCL release, while also addressing the migration of loans from performing to impaired [48][49] Question: NIM expansion and future expectations - Management attributed NIM expansion to loan repositioning, selective repricing, and favorable rate conditions, with modest expansion expected in the next quarter [54][56] Question: Changes in branch count and headcount - The increase in FTE was primarily due to the conversion of the Nordstrom portfolio, requiring additional staffing for call centers and collections [60][63] Question: Efficiency ratios and ROE targets - Management confirmed that while targets remain unchanged, the deployment of AI is expected to enhance efficiency and improve ROE over the long term [67][70]

Financial Data and Key Metrics Changes - The bank reported record earnings of CAD 4.2 billion and EPS of CAD 2.44, resulting in an ROE of 14.2%, up 100 basis points year-over-year [5][75] - Total Bank PTPP increased by 19% year-over-year, with revenue growing 11% year-over-year [22] - The CET1 ratio was 14.5%, with strong organic capital accretion during the quarter [6][32] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking achieved record revenue, PTPP, earnings, deposits, and loan volumes, with average deposits rising 3% year-over-year [24] - In U.S. Banking, year-over-year earnings increased by 22%, with core loans growing by 2% [26] - Wealth management and insurance delivered record earnings and assets, with ETF assets surpassing CAD 31 billion [29][30] Market Data and Key Metrics Changes - Impaired PCLs increased, reflecting a small number of borrowers across various industries, with gross impaired loans at CAD 5.59 billion [33][34] - The bank's provision for credit losses was 43 basis points, driven by the Wholesale Banking segment [34] - The efficiency ratio in U.S. Banking is expected to improve, with a target in the mid-fifties by fiscal 2029 [28] Company Strategy and Development Direction - The bank is focused on deepening relationships, simplifying operations, and executing with discipline, with significant opportunities to grow franchise relationships [13][17] - The bank is targeting CAD 2.2 billion to CAD 2.5 billion in annualized cost savings over the medium term, leveraging AI for efficiency [23][68] - The bank aims to achieve a 13% CET1 ratio by the second half of fiscal 2027, positioning itself for future growth [8][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 targets, with expectations for PCLs to fall within a range of 40-50 basis points [36] - The bank is optimistic about maintaining momentum across its businesses, with potential upside to EPS growth targets [8][75] - Management highlighted the importance of macroeconomic conditions in sustaining growth and performance [8][40] Other Important Information - The bank completed an $8 billion share buyback and initiated a new $7 billion buyback program, demonstrating commitment to returning excess capital to shareholders [6][32] - The bank's restructuring program concluded with total charges of CAD 886 million, expected to yield annual cost savings of CAD 775 million [22][23] Q&A Session Summary Question: Can you discuss factors that might prevent reaching a 16% ROE by 2027? - Management indicated strong momentum and confidence in achieving targets, with improvements in CET1 ratio and expense takeout contributing to ROE growth [39][40] Question: What areas are focused on growing the U.S. loan book? - Management highlighted strong consumer lending growth, particularly in credit cards, and noted good activity in mid-market lending [41][42] Question: Can you explain the credit performance and the release of performing loans? - Management attributed the release to improved macroeconomic conditions and the migration of loans from performing to impaired status [48][49]