Question-and-Answer SessionAjai BambawaleGroup Head & Chief Risk Officer Thanks for the question. So with the risk environment so heightened, Brian, I mean, there's naturally more than one thing that's top of mind for me, but let me call out the top 3. The first is geopolitical risk, okay? The landscape, as you know, is turbulent, and it's characterized by things like deglobalization, trade protectionism, the ongoing conflicts, the strained relations. And the way I'm looking at it is this risk is unlikely t ...

Question-and-Answer SessionAjai BambawaleGroup Head & Chief Risk Officer Thanks for the question. So with the risk environment so heightened, Brian, I mean, there's naturally more than one thing that's top of mind for me, but let me call out the top 3. The first is geopolitical risk, okay? The landscape, as you know, is turbulent, and it's characterized by things like deglobalization, trade protectionism, the ongoing conflicts, the strained relations. And the way I'm looking at it is this risk is unlikely t ...

Summary of TD Bank Group FY Conference Call - September 09, 2025 Company Overview - **Company**: TD Bank Group (NYSE: TD) - **Key Speaker**: Ajai Bambawale, Chief Risk Officer Key Points Industry and Economic Environment - **Geopolitical Risks**: The current geopolitical landscape is turbulent, characterized by deglobalization, trade protectionism, and ongoing conflicts, which are expected to have macroeconomic implications [3][4] - **Macroeconomic Uncertainty**: The macro environment is uncertain, driven by policy and trade issues alongside geopolitical risks. The U.S. economy shows resilience, while Canada is forecasted to experience low economic growth of 1.3% in 2025 and 1.4% in 2026 [6][7] - **Unemployment Rates**: Expected to rise in both Canada (from 7% to 7.3%) and the U.S. (to 4.4%) [6][7] - **Interest Rates**: Anticipated reductions in policy rates by 50 basis points in the U.S. and 75 basis points this calendar year [7] Credit Performance and Provisions - **Impaired PCLs**: The bank expects an increase in impaired provisions for credit losses (PCLs) in Q4 due to seasonal spending patterns, with a full-year expectation of 45 to 55 basis points [9][11] - **Credit Quality**: Overall credit quality remains strong, with no immediate impacts from tariffs at the borrower level. The bank has built reserves of $600 million to prepare for potential economic downturns [10][12] - **Tariff Impact**: The bank has factored tariff impacts into its macro scenarios, with a focus on industries sensitive to tariffs, which constitute about 9% of gross loans [14][19] Consumer Lending and Real Estate - **Real Estate-Secured Lending**: TD Bank has a significant real estate-secured lending portfolio of $407 billion in Canada, with a strong customer profile (average bureau score of 792) [22][23] - **Condo Market Pressure**: There is some pressure in the Canadian condo market due to lower population growth and macroeconomic uncertainties, but the bank's exposure is manageable [25][26] Anti-Money Laundering (AML) and Risk Culture - **AML Focus**: AML remains the bank's top priority, with a multi-year remediation program expected to be largely completed by the end of 2025. The bank is enhancing its risk culture and accountability across all lines of defense [28][33] - **Cultural Changes**: The bank is actively working on improving risk culture, leadership behaviors, and collaboration across departments following past AML events [30][31] Strategic Review and Risk Appetite - **Risk Appetite**: The bank maintains a principles-based risk appetite that has not changed despite current economic uncertainties. Underwriting standards remain consistent [37][38] - **Strategic Refresh**: A strategy refresh is underway, with excitement internally about upcoming changes and leadership, fully vetted by the risk organization [39] Additional Insights - **Reserves and Capitalization**: The bank is well-capitalized with reserves at 103 basis points, indicating a strong position to handle potential economic challenges [12][20] - **Monitoring and Stress Testing**: Continuous monitoring and stress testing of various scenarios, including tariff impacts, are part of the bank's risk management strategy [21][20] This summary encapsulates the key insights from the TD Bank Group FY Conference Call, highlighting the company's focus on risk management, credit quality, and strategic positioning in a challenging economic environment.

Core Viewpoint - The six major Canadian banks reported solid Q3 2025 earnings, with an upward trend in EPS despite macroeconomic headwinds, indicating a positive outlook for the sector [1][2]. Group 1: Earnings Performance - The average EPS of the six banks exceeded expectations by 8.1%, with the Royal Bank of Canada leading at 15.7% above expectations [1]. - The strong performance in capital markets and rising net interest margins offset the increase in manageable credit costs [1]. - The average CET1 capital ratio of these banks is 13.3%, suggesting they have excess capital to support growth [1]. Group 2: Future Outlook - The consensus EPS forecast for 2026 was raised by 2.0% following the Q3 earnings release, with a potential upside of 5%-10% for 2026 EPS [1]. - The anticipated USMCA trade agreement could act as a catalyst for increased corporate hiring and investment [2]. - Global buying interest and an improving macro outlook are expected to support bank stock valuations [2]. Group 3: Comparative Analysis - Canadian banks have a 2026 P/E ratio of 12.1, compared to 12.5 for U.S. banks and below 8 for European banks, indicating relatively higher valuations [3]. - The P/B ratio for Canadian banks stands at 1.6, while European banks are at 0.8 and U.S. banks at 1.7 [3]. - The significant weight of bank stocks in the Canadian TSX index (20%-25%) may attract global asset managers to increase their allocation to the Canadian market [3]. Group 4: M&A Potential - There is potential for mergers and acquisitions in the sector, contingent on macroeconomic clarity and the USMCA agreement [3]. - The Royal Bank of Canada is interested in expanding its wealth management business, including in Europe [3]. - The Montreal Bank is focused on enhancing its ROE in the U.S. market while remaining open to acquisitions within its footprint [3].

Summary of TD Bank (TD) 2025 Conference Call Company Overview - **Company**: TD Bank (TD) - **Date**: September 03, 2025 - **Speaker**: Leo Salom, Group Head of TD's U.S. Retail Business Macroeconomic Environment - The U.S. economy is described as resilient, with strong consumer performance and stable unemployment rates [5][6] - Concerns regarding tariffs have not significantly impacted the economy as initially feared, with investment dollars poised for certain industries like technology and biomedical [6][7] - Geopolitical risks and uncertainties regarding tariff frameworks remain, but the outlook for the U.S. market in 2026 is considered constructive [7] Credit Outlook - TD Bank has set aside a performing reserve of CAD 600 million to address potential stress in vulnerable industries due to tariffs [8][9] - The U.S. credit book has shown strong performance, with a PCL (Provision for Credit Losses) of CAD 230 million, down CAD 80 million quarter-on-quarter [8][9] - Lower-income segments are experiencing some stress, particularly in commercial real estate, but overall credit performance is sound [10][11] Retail Business Performance - The retail side remains stable, with no signs of stress in near-prime auto lending [12][13] - The bank does not operate in the subprime market, focusing instead on prime and near-prime lending [13] Anti-Money Laundering (AML) Initiatives - Significant progress has been made in AML remediation, with a dedicated team and the implementation of a new transaction monitoring platform [15][16] - The bank plans to spend CAD 500 million on AML remediation this year, with similar spending expected next year [19] - Investments in AML are expected to enhance overall operational efficiency and build a sustainable foundation for the bank [20] Balance Sheet Optimization - TD Bank has achieved a 10% headroom off the asset cap of CAD 434 billion, with total assets at CAD 386 billion [24][25] - The bank is focused on core loan growth and has posted growth in the last three quarters, with expectations for acceleration [30] Margin Outlook - The bank reported a net interest margin (NIM) of 3.19%, up 15 basis points quarter-on-quarter, driven by investment bond repositioning and reduced excess liquidity [31][32] - A moderate expansion in NIM is expected in the fourth quarter, with a constructive outlook for 2026 [32] Growth Strategies - TD Bank aims to enhance its wealth management and card businesses, with a focus on deepening relationships with existing clients [39][41] - The wealth management segment is seen as a significant growth opportunity, particularly for mass affluent clients [42][43] - Fee-based revenue is prioritized for growth, alongside traditional net interest income [45][46] Expense Management - The bank is investing in governance and control environments, with a focus on digital capabilities and technology modernization [50][51] - Expenses are expected to moderate in 2026, with a focus on productivity and optimizing the store network [52][53] Synergies with Wholesale Business - The integration of TD Cowen with the commercial bank is expected to enhance mid-market client relationships and fee revenues [55][56] AI and Operational Efficiency - AI is viewed as a significant lever for productivity and operational automation, with ongoing investments in model development and process reengineering [62][67] Key Takeaways - TD Bank has made substantial progress in its U.S. operations, with a focus on AML remediation, balance sheet restructuring, and enhancing profitability [69][70] - The bank's return on equity improved to 8.9%, with expectations for continued growth [71] - The long-term outlook for TD Bank in the U.S. is optimistic, with plans to build a more formidable competitive position in the marketplace [72][73]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Third Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20Third%20Quarter%202025%20Financial%20Highlights) TD Bank Group reported a significant increase in reported earnings for Q3 2025 compared to Q3 last year, primarily due to the absence of prior year's U.S. BSA/AML program charges. Adjusted earnings also saw a modest increase - Reported earnings were **$3.3 billion** in Q3 2025, compared with a loss of **$181 million** in Q3 2024[3](index=3&type=chunk) - Adjusted earnings were **$3.9 billion** in Q3 2025, up **6%** year-over-year[3](index=3&type=chunk) [Year-to-Date Financial Highlights](index=1&type=section&id=1.2%20Year-to-Date%20Financial%20Highlights) For the nine months ended July 31, 2025, reported net income significantly increased, while adjusted net income remained relatively flat compared to the prior year - Reported net income was **$17,258 million** for the nine months ended July 31, 2025, compared with **$5,207 million** for the corresponding period last year[9](index=9&type=chunk) - Adjusted net income was **$11,120 million** for the nine months ended July 31, 2025, compared with **$11,072 million** for the corresponding period last year[9](index=9&type=chunk) [CEO Statement](index=1&type=section&id=1.3%20CEO%20Statement) The CEO, Raymond Chun, highlighted strong Q3 performance driven by robust client activity and disciplined execution, attributing success to the diversified business model and positioning the bank for future growth - Raymond Chun, Group President and Chief Executive Officer, stated that the teams delivered another quarter of **strong performance**, driven by **robust client activity** and **disciplined execution**, underscoring the strength of the **diversified business model**[4](index=4&type=chunk) - The Bank is **well positioned** to build on this momentum as it competes, grows and builds for the future[4](index=4&type=chunk) [Business Segment Performance Overview](index=1&type=section&id=1.4%20Business%20Segment%20Performance%20Overview) All major business segments demonstrated strong performance, with Canadian Personal and Commercial Banking achieving record revenue and net income, U.S. Retail making significant balance sheet restructuring progress, Wealth Management and Insurance delivering strong underlying performance, and Wholesale Banking showing robust revenue growth [Canadian Personal and Commercial Banking](index=1&type=section&id=1.4.1%20Canadian%20Personal%20and%20Commercial%20Banking) - Canadian Personal and Commercial Banking net income was a **record $1,953 million**, an increase of **4%** year-over-year[4](index=4&type=chunk) - Revenue was a **record $5,241 million**, an increase of **5%**, primarily reflecting loan and deposit volume growth[4](index=4&type=chunk) - Canadian Personal Banking achieved **record year-to-date digital sales** in personal chequing, savings and cards combined[5](index=5&type=chunk) [U.S. Retail](index=1&type=section&id=1.4.2%20U.S.%20Retail) - Excluding contributions from The Charles Schwab Corporation, U.S. Retail reported net income was **$760 million (US$554 million)**, an increase of **$3,337 million (US$2,433 million)** year-over-year[6](index=6&type=chunk) - On an adjusted basis, U.S. Retail net income was **$956 million (US$695 million)**, down **18%** (18% in U.S. dollars) compared with the third quarter last year[6](index=6&type=chunk) - The Bank made **significant progress** in its balance sheet restructuring, completing its bond repositioning program and achieving its target **10% asset reduction**[7](index=7&type=chunk) [Wealth Management and Insurance](index=1&type=section&id=1.4.3%20Wealth%20Management%20and%20Insurance) - Wealth Management and Insurance net income was **$703 million**, an increase of **63%** year-over-year, driven by **record assets** and **record earnings** in Wealth Management, **strong insurance premiums growth** and **lower estimated losses from catastrophe claims**[10](index=10&type=chunk) - This quarter's revenue growth marks the **sixth consecutive quarter of double-digit growth**[10](index=10&type=chunk) - TD Asset Management reinforced its leading position as **Canada's 1 institutional asset manager** with **$2.5 billion** of new mandate wins secured globally and domestically[11](index=11&type=chunk) [Wholesale Banking](index=2&type=section&id=1.4.4%20Wholesale%20Banking) - Wholesale Banking reported net income for the quarter was **$398 million**, an increase of **26%** year-over-year[12](index=12&type=chunk) - Revenue for the quarter was **$2,063 million**, an increase of **15%** year-over-year, primarily reflecting **broad-based growth** across Global Markets and Corporate and Investment Banking[12](index=12&type=chunk) - TD Securities was awarded **Canada's Best Bank for Debt Capital Markets** by EuroMoney Awards for Excellence[13](index=13&type=chunk) [Capital Position & Board Appointments](index=2&type=section&id=1.5%20Capital%20Position%20%26%20Board%20Appointments) TD's Common Equity Tier 1 Capital ratio stood at 14.8%. The report also announced new board appointments, including Frank Pearn joining and John B. MacIntyre stepping into the Chair role - TD's Common Equity Tier 1 Capital ratio was **14.8%**[15](index=15&type=chunk) - Frank Pearn joined the Board of Directors effective August 27, 2025[14](index=14&type=chunk) - John B. MacIntyre will step into the role of Chair of the Board of Directors on September 1, 2025[14](index=14&type=chunk) [Financial Highlights Table (Table 1)](index=5&type=section&id=1.6%20Financial%20Highlights%20Table%20%28Table%201%29) This table provides a comprehensive overview of key financial metrics for the three and nine months ended July 31, 2025, compared to the corresponding periods in 2024, including reported and adjusted results for revenue, net income, EPS, and capital ratios Financial Highlights (millions of Canadian dollars, except as noted) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Total revenue – reported | 15,297 | 14,176 | 52,283 | 41,709 | | Total revenue – adjusted | 15,614 | 14,238 | 45,782 | 41,892 | | Net income (loss) – reported | 3,336 | (181) | 17,258 | 5,207 | | Net income – adjusted | 3,871 | 3,646 | 11,120 | 11,072 | | Reported diluted earnings per share (Canadian dollars) | $1.89 | $(0.14) | $9.72 | $2.76 | | Adjusted diluted earnings per share (Canadian dollars) | $2.20 | $2.05 | $6.19 | $6.09 | | Common Equity Tier 1 Capital ratio (%) | 14.8 | 12.8 | 14.8 | 12.8 | | Total assets (billions of Canadian dollars) | 2,035.2 | 1,967.2 | 2,035.2 | 1,967.2 | | Total deposits (billions of Canadian dollars) | 1,256.9 | 1,220.6 | 1,256.9 | 1,220.6 | | Total equity (billions of Canadian dollars) | 125.4 | 111.6 | 125.4 | 111.6 | [Management's Discussion and Analysis (MD&A)](index=4&type=section&id=Management%27s%20Discussion%20and%20Analysis%20%28MD%26A%29) [Significant Events](index=6&type=section&id=2.1%20Significant%20Events) This section details key events impacting the Bank's financial performance and strategic direction, including the sale of Schwab shares, the initiation of a new restructuring program, and ongoing remediation efforts for the U.S. BSA/AML program [Sale of Schwab Shares](index=6&type=section&id=2.1.1%20Sale%20of%20Schwab%20Shares) - On February 12, 2025, the Bank sold its entire remaining equity investment in The Charles Schwab Corporation, resulting in proceeds of approximately **$21.0 billion (US$14.6 billion)**[31](index=31&type=chunk) - The sale recognized a net gain of approximately **$8.6 billion (US$5.8 billion)** in the second quarter of fiscal 2025[31](index=31&type=chunk) - The transaction increased Common Equity Tier 1 (CET1) capital by approximately **238 basis points (bps)** in the second quarter of fiscal 2025[32](index=32&type=chunk) [Restructuring Charges](index=6&type=section&id=2.1.2%20Restructuring%20Charges) - The Bank initiated a new restructuring program in the second quarter of 2025 to reduce its cost base and achieve greater efficiency, expecting to incur total charges of **$600 million to $700 million** pre-tax over several quarters[33](index=33&type=chunk) - In Q3 2025, the Bank incurred **$333 million** pre-tax of restructuring charges, and **$496 million** pre-tax for the nine months ended July 31, 2025[33](index=33&type=chunk) - The program is expected to generate fully realized annual savings of **$550 million to $650 million** pre-tax, including savings from an approximate **2% workforce reduction**[33](index=33&type=chunk) [U.S. BSA/AML Program Remediation and Enterprise AML Program Improvement Activities](index=6&type=section&id=2.1.3%20U.S.%20BSA%2FAML%20Program%20Remediation%20and%20Enterprise%20AML%20Program%20Improvement%20Activities) - The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution announced on October 10, 2024[34](index=34&type=chunk)[36](index=36&type=chunk) - For fiscal 2025, the Bank continues to expect U.S. BSA/AML remediation and related governance and control investments of approximately **US$500 million** pre-tax, with similar investments expected in fiscal 2026[36](index=36&type=chunk) - Progress in Q3 2025 included the deployment of the first phase of **machine learning analysis** on transaction monitoring, **strengthened controls** for new business initiatives, and **focused training** for suspicious customer activity[45](index=45&type=chunk) [Corporate Overview and Reporting Basis](index=8&type=section&id=2.2%20Corporate%20Overview%20and%20Reporting%20Basis) This section provides an overview of TD Bank Group's corporate structure, its reporting methodology including the use of non-GAAP measures, details on its U.S. strategic cards portfolio, the impact of the Schwab investment and IDA Agreement, and updates on the Bank's strategic review [Corporate Profile](index=8&type=section&id=2.2.1%20Corporate%20Profile) - TD is the **sixth largest bank in North America by assets** and serves more than **28.1 million customers** globally[48](index=48&type=chunk) - TD had **$2.0 trillion** in assets on July 31, 2025[48](index=48&type=chunk) [Non-GAAP and Other Financial Measures](index=8&type=section&id=2.2.2%20Non-GAAP%20and%20Other%20Financial%20Measures) - The Bank utilizes **non-GAAP financial measures** such as 'adjusted' results to assess its businesses and overall performance, by adjusting for 'items of note' which management does not believe are indicative of underlying business performance[50](index=50&type=chunk) - Non-GAAP ratios include **adjusted net interest margin**, **adjusted basic and diluted earnings per share (EPS)**, **adjusted dividend payout ratio**, **adjusted efficiency ratio, net of ISE**, and **adjusted effective income tax rate**[50](index=50&type=chunk) [U.S. Strategic Cards](index=8&type=section&id=2.2.3%20U.S.%20Strategic%20Cards) - The Bank's U.S. strategic cards portfolio involves agreements with U.S. retailers where TD is the issuer of private label and co-branded consumer credit cards[51](index=51&type=chunk) - Under IFRS, TD presents the gross amount of revenue and PCL related to these portfolios, with the retailer program partners' share presented in the Corporate segment[51](index=51&type=chunk) [Investment in The Charles Schwab Corporation and IDA Agreement](index=8&type=section&id=2.2.4%20Investment%20in%20The%20Charles%20Schwab%20Corporation%20and%20IDA%20Agreement) - On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab, discontinuing the recording of its share of earnings from this investment[52](index=52&type=chunk) - The Bank continues to have a business relationship with Schwab through the amended insured deposit account agreement (2023 Schwab IDA Agreement), which extends the initial expiration date to **July 1, 2034**[55](index=55&type=chunk)[57](index=57&type=chunk) - The 2023 Schwab IDA Agreement provides for lower deposit balances in its first six years, followed by higher balances in later years, with a floor of **US$60 billion** after September 2025[55](index=55&type=chunk) [Strategic Review Update](index=9&type=section&id=2.2.5%20Strategic%20Review%20Update) - The Bank is conducting a strategic review across four pillars: **adjusting business mix and capital allocation**, **simplifying the portfolio and driving ROE focus**, **evolving the Bank and accelerating capabilities**, and **innovating to drive efficiency and operational excellence**[59](index=59&type=chunk)[62](index=62&type=chunk) - An update on the strategic review and the Bank's medium-term financial targets will be provided at an Investor Day on **September 29, 2025**[59](index=59&type=chunk) [Financial Results Overview](index=12&type=section&id=2.3%20Financial%20Results%20Overview) This section provides a detailed analysis of the Bank's financial performance for Q3 2025 compared to Q3 2024 and Q2 2025, and YTD 2025 vs. YTD 2024, covering net income, net interest income, non-interest income, provision for credit losses, insurance service expenses, non-interest expenses, and income taxes [Net Income](index=12&type=section&id=2.3.1%20Net%20Income) Net Income Comparison (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------- | :------ | :------ | :------- | :------- | | Reported net income | 3,336 | (181) | 17,258 | 5,207 | | Adjusted net income | 3,871 | 3,646 | 11,120 | 11,072 | - The increase in reported net income for Q3 2025 was primarily due to the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program in the third quarter last year[81](index=81&type=chunk) [Net Interest Income](index=13&type=section&id=2.3.2%20Net%20Interest%20Income) Net Interest Income Comparison (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :------ | :------ | :------- | :------- | | Reported net interest income | 8,526 | 7,579 | 24,517 | 22,532 | | Adjusted net interest income | 8,581 | 7,641 | 24,709 | 22,715 | - The increase in net interest income was primarily due to **higher revenue from treasury and balance sheet activities**, **volume growth in Canadian Personal and Commercial Banking**, and the impact of **balance sheet restructuring activities** and **higher deposit margins in U.S. Retail**[89](index=89&type=chunk)[93](index=93&type=chunk) [Non-Interest Income](index=13&type=section&id=2.3.3%20Non-Interest%20Income) Non-Interest Income Comparison (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------- | :------ | :------ | :------- | :------- | | Reported non-interest income | 6,771 | 6,597 | 27,766 | 19,177 | | Adjusted non-interest income | 7,033 | 6,597 | 21,073 | 19,177 | - The year-to-date increase in reported non-interest income was primarily reflecting the **gain on the Schwab sale transaction** in the Corporate segment[99](index=99&type=chunk) - The Q3 2025 increase in non-interest income was primarily reflecting **higher insurance premiums**, **fee-based revenue**, and **transaction revenue** in Wealth Management and Insurance and **higher fixed income trading-related revenue** and **underwriting fees** in Wholesale Banking[95](index=95&type=chunk) [Provision for Credit Losses (PCL)](index=13&type=section&id=2.3.4%20Provision%20for%20Credit%20Losses%20%28PCL%29) Provision for Credit Losses (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Total provision for credit losses | 971 | 1,072 | 3,524 | 3,144 | | PCL – impaired | 904 | 920 | 3,066 | 2,724 | | PCL – performing | 67 | 152 | 458 | 420 | - PCL for Q3 2025 decreased by **$101 million** compared to Q3 2024, largely due to **lower performing provisions**[101](index=101&type=chunk) - The Bank continues to expect total PCL for fiscal 2025 to be in the range of **45 to 55 bps**[104](index=104&type=chunk) [Insurance Service Expenses](index=14&type=section&id=2.3.5%20Insurance%20Service%20Expenses) - Insurance service expenses for Q3 2025 were **$1,563 million**, a decrease of **$106 million (6%)** compared to Q3 2024, primarily reflecting **lower estimated losses from catastrophe claims**[109](index=109&type=chunk) - Quarter-over-quarter, insurance service expenses increased **$146 million (10%)** compared to Q2 2025, primarily driven by **claims seasonality**[110](index=110&type=chunk) - Year-to-date, insurance service expenses were **$4,487 million**, an increase of **$204 million (5%)** compared to YTD 2024, primarily due to **increased claims severity**, partially offset by **lower estimated losses from catastrophe claims**[111](index=111&type=chunk) [Non-Interest Expenses and Efficiency Ratio](index=14&type=section&id=2.3.6%20Non-Interest%20Expenses%20and%20Efficiency%20Ratio) Non-Interest Expenses and Efficiency Ratio (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Reported non-interest expenses | 8,522 | 11,012 | 24,731 | 27,443 | | Adjusted non-interest expenses | 8,124 | 7,208 | 24,015 | 21,417 | | Reported efficiency ratio (%) | 55.7 | 77.7 | 47.3 | 65.8 | | Adjusted efficiency ratio, net of ISE (%) | 57.8 | 57.3 | 58.2 | 56.9 | - The decrease in reported non-interest expenses was primarily due to the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program in the third quarter last year[112](index=112&type=chunk) - Adjusted non-interest expenses increased due to **higher governance and control investments**, including costs for U.S. BSA/AML remediation, and **higher spend supporting business growth initiatives**[112](index=112&type=chunk)[119](index=119&type=chunk) [Income Taxes](index=15&type=section&id=2.3.7%20Income%20Taxes) Effective Income Tax Rate Comparison | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------ | :------ | :------- | :------- | | Reported effective income tax rate (%) | 21.3 | 187.7 | 13.2 | 31.5 | | Adjusted effective income tax rate (%) | 21.9 | 20.2 | 21.6 | 20.4 | - The year-over-year decrease in the reported effective income tax rate primarily reflects the tax impact of the non-deductible provision for the Bank's AML program in the prior year[122](index=122&type=chunk) - The adjusted effective income tax rate increased year-over-year primarily reflecting taxes associated with **Pillar Two legislation** and the impact of **higher adjusted pre-tax income**[123](index=123&type=chunk) [Economic Summary and Outlook](index=16&type=section&id=2.4%20Economic%20Summary%20and%20Outlook) The global economy is expected to slow in calendar 2025 due to decelerating cyclical momentum and trade barriers, particularly higher U.S. tariffs. TD Economics forecasts below 2% U.S. economic growth in 2025, with a rebound in 2026, and modest growth for Canada in 2025, with central banks expected to resume interest rate reductions - The global economy remains on track to **slow in calendar 2025** with decelerating cyclical momentum reinforced by trade barriers, with higher U.S. tariffs likely to persist[126](index=126&type=chunk) - TD Economics forecasts that the U.S. economy will grow at **below a 2% pace** over calendar 2025 before lifting back to **2% in calendar 2026**[127](index=127&type=chunk) - TD Economics expects the Bank of Canada to continue trimming interest rates, reaching **2.25%** by the end of calendar 2025, and the U.S. central bank to lower the federal funds rate to **3.50-3.75%** by the end of calendar 2025[128](index=128&type=chunk)[130](index=130&type=chunk) [How Our Businesses Performed (Segment Analysis)](index=16&type=section&id=2.5%20How%20Our%20Businesses%20Performed%20%28Segment%20Analysis%29) This section provides a detailed breakdown of the financial performance of each of TD Bank Group's four key business segments and the Corporate segment, highlighting key drivers, changes, and strategic initiatives [Canadian Personal and Commercial Banking](index=17&type=section&id=2.5.1%20Canadian%20Personal%20and%20Commercial%20Banking) Canadian Personal and Commercial Banking Performance (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :------ | :------ | :------- | :------- | | Net income | 1,953 | 1,872 | 5,452 | 5,396 | | Total revenue | 5,241 | 5,003 | 15,381 | 14,726 | | Net interest income | 4,239 | 3,994 | 12,397 | 11,639 | | Non-interest income | 1,002 | 1,009 | 2,984 | 3,087 | | Total PCL | 463 | 435 | 1,606 | 1,325 | | Non-interest expenses | 2,066 | 1,967 | 6,204 | 5,908 | | Return on common equity (%) | 32.5 | 34.1 | 31.0 | 33.9 | | Net interest margin (%) | 2.83 | 2.81 | 2.82 | 2.83 | - Average loan volumes increased **$22 billion (4%)** year-over-year, reflecting **3% growth in personal loans** and **6% growth in business loans**[140](index=140&type=chunk)[148](index=148&type=chunk) - Average deposit volumes increased **$20 billion (4%)** year-over-year, reflecting **4% growth in personal deposits** and **6% growth in business deposits**[140](index=140&type=chunk)[149](index=149&type=chunk) [U.S. Retail](index=18&type=section&id=2.5.2%20U.S.%20Retail) U.S. Retail Performance (millions of Canadian dollars, except as noted) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | U.S. Retail net income (loss) – reported (millions of Canadian dollars) | 760 | (2,399) | 1,222 | (1,022) | | U.S. Retail net income – adjusted (millions of Canadian dollars) | 956 | 1,167 | 2,961 | 3,546 | | Total revenue – reported (millions of US dollars) | 2,532 | 2,594 | 6,324 | 7,721 | | Total revenue – adjusted (millions of US dollars) | 2,720 | 2,594 | 7,952 | 7,721 | | Total PCL (millions of US dollars) | 231 | 276 | 860 | 841 | | Non-interest expenses – reported (millions of US dollars) | 1,732 | 4,133 | 5,051 | 7,928 | | Adjusted efficiency ratio (%) | 63.7 | 59.1 | 63.5 | 58.3 | - The Bank completed the repositioning of its U.S. investment portfolio by selling approximately **US$25 billion** of bonds for an aggregate loss of **US$1.3 billion** pre-tax since October 10, 2024[153](index=153&type=chunk) - The Bank now expects to reduce the U.S. Bank's assets by modestly more than **10%** from the asset level as of September 30, 2024[154](index=154&type=chunk) - Net interest margin is expected to **moderately expand** in the fourth quarter[178](index=178&type=chunk) [Wealth Management and Insurance](index=22&type=section&id=2.5.3%20Wealth%20Management%20and%20Insurance) Wealth Management and Insurance Performance (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Net income | 703 | 430 | 2,090 | 1,606 | | Total revenue | 3,673 | 3,349 | 10,774 | 9,598 | | Insurance service expenses | 1,563 | 1,669 | 4,487 | 4,283 | | Non-interest expenses | 1,155 | 1,104 | 3,459 | 3,178 | | Return on common equity (%) | 44.7 | 27.1 | 44.7 | 35.0 | | Assets under administration (billions of Canadian dollars) | 709 | 632 | 709 | 632 | | Assets under management (billions of Canadian dollars) | 572 | 523 | 572 | 523 | - Net income for Q3 2025 increased **63%** year-over-year, reflecting a **26% increase in Wealth Management net income** and a **$167 million increase in Insurance net income**[197](index=197&type=chunk) - Revenue for Q3 2025 increased **10%** year-over-year, reflecting **higher insurance premiums**, **fee-based revenue**, and **transaction revenue**[198](index=198&type=chunk) [Wholesale Banking](index=23&type=section&id=2.5.4%20Wholesale%20Banking) Wholesale Banking Performance (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :------ | :------ | :------- | :------- | | Net income – reported | 398 | 317 | 1,116 | 883 | | Net income – adjusted | 423 | 377 | 1,208 | 1,116 | | Total revenue | 2,063 | 1,795 | 6,192 | 5,515 | | Total PCL | 71 | 118 | 266 | 183 | | Non-interest expenses – reported | 1,493 | 1,310 | 4,489 | 4,240 | | Return on common equity – adjusted (%) | 9.9 | 9.4 | 9.7 | 9.4 | - Reported net income for Q3 2025 increased **26%** year-over-year, primarily reflecting **higher revenues** and **lower PCL**[211](index=211&type=chunk) - Revenue for Q3 2025 increased **15%** year-over-year, primarily reflecting **higher fixed income trading-related revenue** and **underwriting fees**[212](index=212&type=chunk) [Corporate Segment](index=24&type=section&id=2.5.5%20Corporate%20Segment) Corporate Segment Performance (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :----------------------- | :------ | :------ | :------- | :------- | | Net income (loss) – reported | (478) | (401) | 7,378 | (1,656) | | Net income (loss) – adjusted | (164) | (200) | (591) | (592) | - The higher reported net loss in Q3 2025 primarily reflects **higher net corporate expenses** and **restructuring charges**, partially offset by **higher revenue from treasury and balance sheet activities**[225](index=225&type=chunk) - The year-to-date increase in reported net income primarily reflects the **gain on the Schwab sale transaction** and **higher revenue from treasury and balance sheet activities**[227](index=227&type=chunk) [Quarterly Results](index=25&type=section&id=2.6%20Quarterly%20Results) This table provides a summary of the Bank's financial performance over the eight most recently completed quarters, including key reported and adjusted financial metrics such as revenue, net income, EPS, and capital ratios Quarterly Results (millions of Canadian dollars, except as noted) | Metric | Jul. 31, 2025 | Apr. 30, 2025 | Jan. 31, 2025 | Oct. 31, 2024 | Jul. 31, 2024 | Apr. 30, 2024 | Jan. 31, 2024 | Oct. 31, 2023 | | :--------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | :------------ | :------------ | :------------ | | Total revenue | 15,297 | 22,937 | 14,049 | 15,514 | 14,176 | 13,819 | 13,714 | 13,178 | | Net income (loss) – reported | 3,336 | 11,129 | 2,793 | 3,635 | (181) | 2,564 | 2,824 | 2,866 | | Net income – adjusted | 3,871 | 3,626 | 3,623 | 3,205 | 3,646 | 3,789 | 3,637 | 3,485 | | Basic earnings (loss) per share (Canadian dollars) | $1.89 | $6.28 | $1.55 | $1.97 | $(0.14) | $1.35 | $1.55 | $1.48 | | Diluted earnings (loss) per share (Canadian dollars) | 1.89 | 6.27 | 1.55 | 1.97 | (0.14) | 1.35 | 1.55 | 1.48 | | Adjusted diluted earnings per share (Canadian dollars) | 2.20 | 1.97 | 2.02 | 1.72 | 2.05 | 2.04 | 2.00 | 1.82 | | Return on common equity – reported (%) | 11.3 | 39.1 | 10.1 | 13.4 | (1.0) | 9.5 | 10.9 | 10.5 | | Return on common equity – adjusted (%) | 13.2 | 12.3 | 13.2 | 11.7 | 14.1 | 14.5 | 14.1 | 12.9 | [Balance Sheet Review](index=26&type=section&id=2.7%20Balance%20Sheet%20Review) Total assets decreased by $27 billion since October 31, 2024, to $2,035 billion, primarily due to decreases in cash, debt securities, and loans, partially offset by increases in trading assets and financial assets at FVOCI. Total liabilities also decreased by $37 billion, mainly from other liabilities, FVTPL financial liabilities, and deposits Selected Interim Consolidated Balance Sheet Items (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Total assets | 2,035,162 | 2,061,751 | | Total liabilities | 1,909,768 | 1,946,591 | | Total equity | 125,394 | 115,160 | | Loans, net of allowance for loan losses | 936,090 | 949,549 | | Total deposits | 1,256,922 | 1,268,680 | - The decrease in total assets reflects a decrease in **cash and interest-bearing deposits with banks ($55 billion)**, **debt securities at amortized cost ($26 billion)**, **loans ($14 billion)**, and **investment in Schwab ($9 billion)**[232](index=232&type=chunk) - The decrease in total liabilities reflects a decrease in **other liabilities ($23 billion)**, **financial liabilities designated at fair value through profit or loss ($13 billion)**, and **deposits ($12 billion)**[239](index=239&type=chunk) [Credit Portfolio Quality](index=27&type=section&id=2.8%20Credit%20Portfolio%20Quality) This section details the quality of the Bank's credit portfolio, including changes in impaired loans, allowance for credit losses, and an overview of real estate secured lending and sovereign risk exposures [Gross Impaired Loans and Allowance for Credit Losses](index=27&type=section&id=2.8.1%20Gross%20Impaired%20Loans%20and%20Allowance%20for%20Credit%20Losses) Gross Impaired Loans and Allowance for Credit Losses (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Gross impaired loans | 5,334 | 4,170 | | Net impaired loans | 3,672 | 2,905 | | Total allowance for credit losses | 9,705 | 8,838 | | Stage 3 allowance for loan losses | 1,662 | 1,265 | | Stage 1 and Stage 2 allowance for loan losses | 6,970 | 6,546 | - Gross impaired loans increased by **$1,164 million (28%)** year-over-year, reflecting formations outpacing resolutions across segments[247](index=247&type=chunk) - The Stage 1 and Stage 2 allowance for loan losses increased by **$474 million (6%)**, largely reflecting reserve build related to elevated uncertainty associated with policy and trade[249](index=249&type=chunk) [Real Estate Secured Lending](index=28&type=section&id=2.8.2%20Real%20Estate%20Secured%20Lending) Canadian Real Estate Secured Lending (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Total Canadian real estate secured lending | 407,181 | 396,105 | | Insured residential mortgages | 54,700 | 57,000 | | Uninsured residential mortgages | 214,435 | 216,069 | | Uninsured home equity lines of credit | 132,872 | 117,332 | - Balances with a remaining amortization longer than **30 years** primarily reflect Canadian variable rate mortgages where prior interest rate increases have resulted in a longer current amortization period[266](index=266&type=chunk) - The average loan-to-value for newly originated and newly acquired uninsured Canadian residential mortgages was **69%** as at July 31, 2025[269](index=269&type=chunk) [Sovereign Risk](index=30&type=section&id=2.8.3%20Sovereign%20Risk) Total Net Exposure by Region and Counterparty (millions of Canadian dollars) | Region | Total Exposure (July 31, 2025) | | :------------- | :----------------------------- | | Europe | 59,682 | | United Kingdom | 32,063 | | Asia | 17,627 | | Other | 6,749 | | Total | 116,121 | - The Bank's direct credit exposures outside of Canada and the U.S. totaled **$116,121 million** as at July 31, 2025[274](index=274&type=chunk) [Capital Position](index=30&type=section&id=2.9%20Capital%20Position) This section outlines TD Bank Group's regulatory capital position, adherence to Basel III and OSFI requirements, G-SIB indicators, and details on its equity structure, dividends, and share repurchase programs [Regulatory Capital Framework](index=30&type=section&id=2.9.1%20Regulatory%20Capital%20Framework) - TD manages its regulatory capital in accordance with OSFI's implementation of the Basel III Capital Framework[276](index=276&type=chunk) - The Domestic Stability Buffer (DSB) level increased from **3% to 3.5%** as of November 1, 2023[277](index=277&type=chunk) Regulatory Capital and TLAC Target Ratios | Capital | Pillar 1 Target (%) | DSB (%) | Pillar 1 & 2 Target (%) | | :-------------- | :------------------ | :------ | :---------------------- | | CET1 | 8.0 | 3.5 | 11.5 | | Tier 1 | 9.5 | 3.5 | 13.0 | | Total Capital | 11.5 | 3.5 | 15.0 | | Leverage | 3.5 | n/a | 3.5 | | TLAC | 21.5 | 3.5 | 25.0 | | TLAC Leverage | 7.25 | n/a | 7.25 | [G-SIB Indicators](index=31&type=section&id=2.9.2%20G-SIB%20Indicators) G-SIB Indicators (millions of Canadian dollars) | Category (and weighting) | Individual Indicator | Oct. 31, 2024 | Oct. 31, 2023 | | :----------------------- | :------------------------------------- | :------------ | :------------ | | Cross-jurisdictional activity (20%) | Cross-jurisdictional claims | 1,100,768 | 1,003,230 | | Size (20%) | Total exposures as defined for use in the Basel III leverage ratio | 2,228,986 | 2,112,677 | | Interconnectedness (20%) | Intra-financial system assets | 107,793 | 109,833 | | Substitutability/financial institution infrastructure (20%) | Payments activity | 61,946,928 | 53,446,393 | | Complexity (20%) | Notional amount of OTC derivatives | 23,945,530 | 21,198,657 | - The 'Payments activity' G-SIB indicator for October 31, 2024 and 2023 has been revised[285](index=285&type=chunk) [Capital Structure and Ratios](index=32&type=section&id=2.9.3%20Capital%20Structure%20and%20Ratios) Capital Ratios – Basel III | Capital Ratio | July 31, 2025 | October 31, 2024 | | :----------------------- | :------------ | :--------------- | | Common Equity Tier 1 Capital ratio (%) | 14.8 | 13.1 | | Tier 1 Capital ratio (%) | 16.5 | 14.8 | | Total Capital ratio (%) | 18.4 | 16.8 | | Leverage ratio (%) | 4.6 | 4.2 | - The Bank's CET1 Capital ratio increased from **13.1%** as at October 31, 2024, primarily attributable to the **sale of Schwab shares** and **internal capital generation**, offset by common shares repurchased for cancellation, RWA growth, and the impact of U.S. balance sheet restructuring[290](index=290&type=chunk) - The Bank's leverage ratio increased from **4.2%** as at October 31, 2024, primarily attributable to the **sale of Schwab shares** and **internal capital generation**, offset by common shares repurchased for cancellation, exposure increases, and the impact of U.S. balance sheet restructuring[291](index=291&type=chunk) [Future Regulatory Capital Developments](index=33&type=section&id=2.9.4%20Future%20Regulatory%20Capital%20Developments) - On February 12, 2025, OSFI deferred increases to the Basel III standardized capital floor level until further notice[294](index=294&type=chunk) - OSFI will notify the Bank at least **two years** prior to resuming an increase in the capital floor level[294](index=294&type=chunk) [Equity and Other Securities](index=33&type=section&id=2.9.5%20Equity%20and%20Other%20Securities) Equity and Other Securities (thousands of shares/units and millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Common shares outstanding | 1,708,113 | 1,750,272 | | Total common shares (Amount) | $24,879 | $25,356 | | Preferred shares – Class A (Amount) | $3,050 | $3,900 | | Other equity instruments (Amount) | $7,738 | $6,988 | - On July 31, 2025, the Bank redeemed all of its **14 million** outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares NVCC, Series 7, for approximately **$350 million**[295](index=295&type=chunk) [Dividends and Share Repurchase Programs](index=33&type=section&id=2.9.6%20Dividends%20and%20Share%20Repurchase%20Programs) - On August 27, 2025, the Board approved a dividend of **$1.05 per fully paid common share** for the quarter ending October 31, 2025[299](index=299&type=chunk) - The Bank's 2025 Normal Course Issuer Bid (NCIB) commenced on March 3, 2025, to repurchase for cancellation up to **100 million common shares** by February 28, 2026[304](index=304&type=chunk) - From the commencement of the 2025 NCIB to July 31, 2025, the Bank repurchased **45.5 million shares** for a total amount of **$4.1 billion**[304](index=304&type=chunk) [Risk Factors and Management](index=34&type=section&id=2.10%20Risk%20Factors%20and%20Management) This section outlines the Bank's approach to identifying, measuring, and managing various risks, including updates to its Enterprise Risk Framework, specific discussions on geopolitical, regulatory, credit, market, and liquidity risks, and details on funding strategies and maturity analysis [Geopolitical Risk](index=34&type=section&id=2.10.1%20Geopolitical%20Risk) - The evolution of geopolitical, policy, trade and tax-related risks, including new or elevated tariffs, has the potential to increase **economic uncertainty**, **market volatility**, disrupt **global supply chains and trade flows**, and deteriorate **business confidence**[309](index=309&type=chunk) - These risks can adversely impact the Bank's **financial condition**, **trading and non-trading activities**, **market liquidity**, **funding costs**, and **credit performance**[309](index=309&type=chunk) [Regulatory Oversight and Compliance Risk](index=34&type=section&id=2.10.2%20Regulatory%20Oversight%20and%20Compliance%20Risk) - Regulators have indicated the potential for escalating consequences for banks that do not timely resolve open issues or have repeat issues[311](index=311&type=chunk) - Failure to satisfy regulatory requirements could result in **fines**, **penalties**, **business restrictions**, **increased capital or liquidity requirements**, and other adverse consequences[311](index=311&type=chunk) - The evolving U.S. regulatory environment, with shifting supervisory and enforcement priorities, creates uncertainty and could have varying effects on the Bank and its subsidiaries[311](index=311&type=chunk) [Enterprise Risk Framework Updates](index=35&type=section&id=2.10.3%20Enterprise%20Risk%20Framework%20Updates) - In Q3 2025, the Bank updated its Enterprise Risk Framework, elevating **Financial Crime Risk** to a stand-alone Major Risk Category[315](index=315&type=chunk)[316](index=316&type=chunk) - Operational Risk was divided into two Major Risk Categories: **Operational Risk – Data, Technology and Cybersecurity**, and **Operational Risk excluding Data, Technology and Cybersecurity**[315](index=315&type=chunk)[317](index=317&type=chunk) - A new Executive Committee, the Remediation Subcommittee of the Enterprise Risk Management Committee, was convened to oversee the Bank's enforcement commitments and progress on required remediations[323](index=323&type=chunk) [Credit Risk Exposure](index=35&type=section&id=2.10.4%20Credit%20Risk%20Exposure) Gross Credit Risk Exposure – Standardized and Internal Ratings-Based (IRB) Approaches (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :----------------------- | :------------ | :--------------- | | Total retail | 832,953 | 821,951 | | Total non-retail | 1,474,678 | 1,487,996 | | Gross credit risk exposures | 2,307,631 | 2,309,947 | - Gross credit risk exposure (EAD) is the total amount the Bank is exposed to at the time of default of a loan, measured before counterparty-specific provisions or write-offs[320](index=320&type=chunk) [Market Risk](index=36&type=section&id=2.10.5%20Market%20Risk) - Market risk capital is calculated using the Standardized Approach under Basel III, and the Bank uses **Value-at-Risk (VaR)** as an internal management metric[324](index=324&type=chunk) Portfolio Market Risk Measures (millions of Canadian dollars) | Metric | As at July 31, 2025 | | :-------------------------- | :------------------ | | Interest rate risk | $7.5 | | Credit spread risk | $14.6 | | Equity risk | $12.0 | | Foreign exchange risk | $4.5 | | Commodity risk | $33.4 | | Idiosyncratic debt specific risk | $18.8 | | Total Value-at-Risk (one-day) | $40.5 | - As at July 31, 2025, an immediate and sustained **100 bps increase in interest rates** would have had a **negative impact of $3,330 million** on the Bank's Economic Value of Shareholders' Equity (EVE) and a **positive impact of $527 million** on Net Interest Income Sensitivity (NIIS)[346](index=346&type=chunk)[348](index=348&type=chunk) [Liquidity Risk](index=39&type=section&id=2.10.6%20Liquidity%20Risk) - TD follows a **disciplined liquidity management program**, targeting a **90-day survival horizon** under a combined bank-specific and market-wide stress scenario[351](index=351&type=chunk)[352](index=352&type=chunk) Summary of Unencumbered Liquid Assets (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :----------------------- | :------------ | :--------------- | | Total unencumbered liquid assets | 569,547 | 584,527 | | Total encumbered liquid assets | 393,462 | 357,542 | - Total unencumbered liquid assets decreased by **$15 billion** since October 31, 2024, as previous elevated liquidity surpluses were managed to more sustainable levels[357](index=357&type=chunk) [Funding Strategy](index=45&type=section&id=2.10.7%20Funding%20Strategy) - The Bank's primary approach to funding is to maximize the use of deposits raised through its personal, wealth and business banking channels, which were approximately **64% of the Bank's total funding**[392](index=392&type=chunk) Summary of Deposit Funding (millions of Canadian dollars) | Type | July 31, 2025 | October 31, 2024 | | :---------- | :------------ | :--------------- | | Personal | 650,186 | 641,667 | | Non-personal | 308,798 | 310,422 | | Total | 958,984 | 952,089 | Long-Term Funding by Type (July 31, 2025) | Funding Type | Percentage (%) | | :-------------------------- | :------------- | | Senior unsecured medium-term notes | 54 | | Covered bonds | 36 | | Mortgage securitization | 8 | | Term asset-backed securities | 2 | [Maturity Analysis of Assets, Liabilities, and Off-Balance Sheet Commitments](index=46&type=section&id=2.10.8%20Maturity%20Analysis%20of%20Assets%2C%20Liabilities%2C%20and%20Off-Balance%20Sheet%20Commitments) - The maturity analysis summarizes on-balance sheet and off-balance sheet categories by remaining contractual maturity[406](index=406&type=chunk) - Total assets were **$2,035,162 million** and total liabilities and equity were **$2,035,162 million** as at July 31, 2025[408](index=408&type=chunk) - Total off-balance sheet commitments were **$395,935 million** as at July 31, 2025[408](index=408&type=chunk) [Regulatory Developments Concerning Liquidity and Funding](index=48&type=section&id=2.10.9%20Regulatory%20Developments%20Concerning%20Liquidity%20and%20Funding) - In May 2025, OSFI released draft guidelines for its **2026 proposed amendments to Liquidity Adequacy Requirements (LAR)** for public consultation[416](index=416&type=chunk) - Proposals introduce deposit categorizations for measuring liquidity risks from structured notes and deposits sourced through non-bank financial intermediaries[416](index=416&type=chunk) - OSFI is also engaged in a public consultation focused on Pillar 2: the supervisory review process, aiming to implement an **internal liquidity adequacy assessment process (ILAAP)** in Canada[417](index=417&type=chunk) [Accounting Policies and Estimates](index=49&type=section&id=2.11%20Accounting%20Policies%20and%20Estimates) This section addresses the Bank's accounting policies under IFRS, significant judgments and estimates, and changes in accounting policies and internal controls, including the impact of ISSB standards and the deconsolidation of U.S. multi-seller ABCP conduits [ISSB – IFRS S1 and IFRS S2](index=49&type=section&id=2.11.1%20ISSB%20%E2%80%93%20IFRS%20S1%20and%20IFRS%20S2) - Canadian Securities Administrators (CSA) announced a pause in work on a new mandatory climate-related disclosure rule based on ISSB standards[419](index=419&type=chunk) - The Bank continues to assess the impact of adopting these standards and to monitor developments from various standard setters and regulators[419](index=419&type=chunk) [Securitization and Off-Balance Sheet Arrangements](index=49&type=section&id=2.11.2%20Securitization%20and%20Off-Balance%20Sheet%20Arrangements) - The Bank is involved with structured entities (SEs) that it sponsors, as well as entities sponsored by third parties[420](index=420&type=chunk) - Effective July 31, 2025, the Bank deconsolidated its U.S. multi-seller asset-backed commercial paper (ABCP) conduits due to a change in the Bank's exposure to variable returns[426](index=426&type=chunk) - TD's total potential exposure to loss through the provision of liquidity facilities for multi-seller conduits was **$57.6 billion** as at July 31, 2025[421](index=421&type=chunk) [Current Changes in Accounting Policies](index=49&type=section&id=2.11.3%20Current%20Changes%20in%20Accounting%20Policies) - There were no new accounting policies adopted by the Bank for the three and nine months ended July 31, 2025[423](index=423&type=chunk) [Accounting Judgments, Estimates, and Assumptions](index=49&type=section&id=2.11.4%20Accounting%20Judgments%2C%20Estimates%2C%20and%20Assumptions) - The Expected Credit Loss (ECL) model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking economic environment[425](index=425&type=chunk) - Management continues to exercise expert credit judgment in determining the amount of ECLs, including for risks related to elevated uncertainty associated with policy and trade[425](index=425&type=chunk) [Consolidation of Structured Entities](index=49&type=section&id=2.11.5%20Consolidation%20of%20Structured%20Entities) - Effective July 31, 2025, the Bank concluded that it no longer controls its U.S. multi-seller asset-backed commercial paper (ABCP) conduits and has therefore deconsolidated these conduits prospectively[426](index=426&type=chunk) - The deconsolidation resulted in a decrease of **$17,702 million** of Business and government loans, **$2,695 million** of Non-trading financial assets at fair value through profit or loss (FVTPL), **$77 million** of Other assets and **$19,332 million** of Other liabilities on the Interim Consolidated Balance Sheet[426](index=426&type=chunk) - Impacts on the Interim Consolidated Statement of Income as a result of deconsolidation are minimal[426](index=426&type=chunk) [Future Changes in Accounting Policies](index=49&type=section&id=2.11.6%20Future%20Changes%20in%20Accounting%20Policies) - There were no new accounting standards or amendments issued during the three and nine months ended July 31, 2025[427](index=427&type=chunk) [Changes in Internal Control over Financial Reporting](index=49&type=section&id=2.11.7%20Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - During the most recent interim period, there have been no changes in the Bank's policies and procedures and other processes that comprise its internal control over financial reporting, that have materially affected, or are reasonably likely to materially affect, the Bank's internal control over financial reporting[428](index=428&type=chunk) [Interim Consolidated Financial Statements (Unaudited)](index=53&type=section&id=Interim%20Consolidated%20Financial%20Statements%20%28Unaudited%29) [Interim Consolidated Balance Sheet](index=53&type=section&id=3.1%20Interim%20Consolidated%20Balance%20Sheet) The Interim Consolidated Balance Sheet as of July 31, 2025, shows total assets of $2,035,162 million and total liabilities of $1,909,768 million, with total equity at $125,394 million Interim Consolidated Balance Sheet (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Total assets | 2,035,162 | 2,061,751 | | Total liabilities | 1,909,768 | 1,946,591 | | Total equity | 125,394 | 115,160 | | Loans, net of allowance for loan losses | 936,090 | 949,549 | | Deposits | 1,256,922 | 1,268,680 | [Interim Consolidated Statement of Income](index=54&type=section&id=3.2%20Interim%20Consolidated%20Statement%20of%20Income) For the three months ended July 31, 2025, net income was $3,336 million, a significant increase from a loss of $181 million in the prior year. Total revenue increased to $15,297 million, driven by higher net interest income and non-interest income Interim Consolidated Statement of Income (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Net interest income | 8,526 | 7,579 | 24,517 | 22,532 | | Non-interest income | 6,771 | 6,597 | 27,766 | 19,177 | | Total revenue | 15,297 | 14,176 | 52,283 | 41,709 | | Provision for (recovery of) credit losses | 971 | 1,072 | 3,524 | 3,144 | | Non-interest expenses | 8,522 | 11,012 | 24,731 | 27,443 | | Net income (loss) | 3,336 | (181) | 17,258 | 5,207 | | Basic earnings (loss) per share (Canadian dollars) | $1.89 | $(0.14) | $9.73 | $2.77 | | Diluted earnings (loss) per share (Canadian dollars) | 1.89 | (0.14) | 9.72 | 2.76 | [Interim Consolidated Statement of Comprehensive Income](index=55&type=section&id=3.3%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the three months ended July 31, 2025, was $3,024 million, compared to $1,901 million in the prior year. This includes net income and various components of other comprehensive income (loss), such as unrealized gains/losses on financial assets and derivatives, and foreign currency translation adjustments Interim Consolidated Statement of Comprehensive Income (millions of Canadian dollars) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Net income (loss) | 3,336 | (181) | 17,258 | 5,207 | | Other comprehensive income (loss) | (312) | 2,082 | 2,805 | 3,312 | | Total comprehensive income (loss) | 3,024 | 1,901 | 20,063 | 8,519 | [Interim Consolidated Statement of Changes in Equity](index=56&type=section&id=3.4%20Interim%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The statement details changes in common shares, preferred shares, other equity instruments, treasury shares, contributed surplus, retained earnings, and accumulated other comprehensive income for the three and nine months ended July 31, 2025, and July 31, 2024. Total equity increased to $125,394 million by July 31, 2025 Interim Consolidated Statement of Changes in Equity (millions of Canadian dollars) | Metric | July 31, 2025 | July 31, 2024 | | :------------------------------------ | :------------ | :------------ | | Common shares | 24,971 | 25,222 | | Preferred shares and other equity instruments | 10,788 | 10,888 | | Retained earnings | 78,749 | 69,316 | | Accumulated other comprehensive income (loss) | 10,737 | 6,015 | | Total equity | 125,394 | 111,576 | [Interim Consolidated Statement of Cash Flows](index=57&type=section&id=3.5%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the nine months ended July 31, 2025, net cash used in operating activities was $(60,233) million, net cash used in financing activities was $(11,909) million, and net cash from investing activities was $71,240 million. Cash and due from banks at period-end was $5,517 million Interim Consolidated Statement of Cash Flows (millions of Canadian dollars) | Metric | YTD 2025 | YTD 2024 | | :------------------------------------ | :------- | :------- | | Net cash from (used in) operating activities | (60,233) | (24,757) | | Net cash from (used in) financing activities | (11,909) | (9,397) | | Net cash from (used in) investing activities | 71,240 | 34,703 | | Cash and due from banks at end of period | 5,517 | 7,245 | [Notes to Interim Consolidated Financial Statements](index=58&type=section&id=3.6%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures and explanations for the figures presented in the interim consolidated financial statements, covering the Bank's nature of operations, accounting policies, fair value measurements, credit quality, investments, deposits, equity, and regulatory capital [Note 1: Nature of Operations](index=58&type=section&id=3.6.1%20Note%201%3A%20Nature%20of%20Operations) - The Toronto-Dominion Bank is a bank chartered under the Bank Act (Canada), formed through amalgamation in 1955[487](index=487&type=chunk) - TD Bank Group serves customers in four business segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking[487](index=487&type=chunk) - The Interim Consolidated Financial Statements are prepared in accordance with International Accounting Standards 34 (IAS 34) and International Financial Reporting Standards (IFRS)[488](index=488&type=chunk) [Note 2: Current and Future Changes in Accounting Policies](index=58&type=section&id=3.6.2%20Note%202%3A%20Current%20and%20Future%20Changes%20in%20Accounting%20Policies) - There were no new accounting policies adopted by the Bank for the three and nine months ended July 31, 2025[494](index=494&type=chunk) - There were no new accounting standards or amendments issued during the three and nine months ended July 31, 2025[495](index=495&type=chunk) [Note 3: Significant Accounting Judgments, Estimates, and Assumptions](index=58&type=section&id=3.6.3%20Note%203%3A%20Significant%20Accounting%20Judgments%2C%20Estimates%2C%20and%20Assumptions) - The Expected Credit Loss (ECL) model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking economic environment[497](index=497&type=chunk) - Management continues to exercise expert credit judgment in assessing if an exposure has experienced significant increase in credit risk and in determining the amount of ECLs[497](index=497&type=chunk) - Effective July 31, 2025, the Bank deconsolidated its U.S. multi-seller asset-backed commercial paper (ABCP) conduits, resulting in balance sheet adjustments but minimal income statement impacts[498](index=498&type=chunk) [Note 4: Fair Value Measurements](index=59&type=section&id=3.6.4%20Note%204%3A%20Fair%20Value%20Measurements) - There have been no significant changes to the Bank's approach and methodologies used to determine fair value measurements for the three and nine months ended July 31, 2025[500](index=500&type=chunk) Total Financial Assets and Liabilities Not Carried at Fair Value (millions of Canadian dollars) | Metric | July 31, 2025 (Carrying Value) | July 31, 2025 (Fair Value) | | :------------------------------------ | :----------------------------- | :------------------------- | | Total financial assets not carried at fair value | 1,181,615 | 1,181,578 | | Total financial liabilities not carried at fair value | 1,281,017 | 1,280,533 | - There were no significant transfers between Level 2 and Level 3 of the fair value hierarchy during the three and nine months ended July 31, 2025, and July 31, 2024[511](index=511&type=chunk) [Note 5: Unrealized Securities Gains (Losses)](index=64&type=section&id=3.6.5%20Note%205%3A%20Unrealized%20Securities%20Gains%20%28Losses%29) Unrealized Gains (Losses) for Securities at Fair Value Through Other Comprehensive Income (millions of Canadian dollars) | Metric | July 31, 2025 (Fair Value) | October 31, 2024 (Fair Value) | | :------------------------------------ | :--------------------------- | :---------------------------- | | Total debt securities | 119,435 | 89,252 | | Total equity securities | 3,294 | 4,415 | | Total securities at FVOCI | 122,729 | 93,667 | Debt Securities Net Realized Gains (Losses) (millions of Canadian dollars) | Metric | Q3 2025 | YTD 2025 | | :------------------------------------ | :------ | :------- | | Debt securities at amortized cost | (337) | (1,533) | | Debt securities at fair value through other comprehensive income | (35) | (41) | | Total | (372) | (1,574) | - The net realized losses on debt securities include **$339 million (US$244 million)** for Q3 2025 and **$1,546 million (US$1,092 million)** for YTD 2025 of pre-tax losses related to the U.S. Retail segment's balance sheet restructuring initiative[528](index=528&type=chunk) [Note 6: Loans, Impaired Loans, and Allowance for Credit Losses](index=65&type=section&id=3.6.6%20Note%206%3A%20Loans%2C%20Impaired%20Loans%2C%20and%20Allowance%20for%20Credit%20Losses) Loans and Allowance for Credit Losses (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Total loans | 944,772 | 957,643 | | Total allowance for loan losses | 8,682 | 8,094 | | Total loans, net of allowance | 936,255 | 949,779 | | Gross impaired loans (July 31, 2025) | 5,334 | 4,170 | | Net impaired loans (July 31, 2025) | 3,672 | 2,905 | - The probability-weighted Expected Credit Losses (ECLs) for performing loans and off-balance sheet instruments were **$8,030 million** as at July 31, 2025, compared to base ECLs of **$7,733 million**[574](index=574&type=chunk) - The sale of **US$8.6 billion** of certain U.S. residential mortgage loans on March 26, 2025, resulted in a pre-tax loss of **US$507 million** for the nine months ended July 31, 2025[580](index=580&type=chunk) [Note 7: Investment in Associates and Joint Ventures](index=74&type=section&id=3.6.7%20Note%207%3A%20Investment%20in%20Associates%20and%20Joint%20Ventures) - On February 12, 2025, the Bank sold its entire remaining equity investment in The Charles Schwab Corporation, resulting in a net gain on sale of approximately **$9.2 billion** in Q2 2025[581](index=581&type=chunk) - The transaction increased Common Equity Tier 1 (CET1) capital by approximately **238 bps** in the second quarter of fiscal 2025[582](index=582&type=chunk) - The Bank continues its business relationship with Schwab through the amended insured deposit account agreement (IDA Agreement), which extends to **July 1, 2034**, and sets a deposit floor of **US$60 billion** after September 2025[584](index=584&type=chunk)[586](index=586&type=chunk) [Note 8: Other Assets](index=75&type=section&id=3.6.8%20Note%208%3A%20Other%20Assets) Other Assets (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Accounts receivable and other items | 14,114 | 12,931 | | Accrued interest | 5,635 | 5,509 | | Current income tax receivable | 4,274 | 4,061 | | Total | 29,654 | 28,181 | [Note 9: Deposits](index=75&type=section&id=3.6.9%20Note%209%3A%20Deposits) Deposits by Type and Country (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Total deposits | 1,256,922 | 1,268,680 | | Personal deposits | 650,185 | 641,667 | | Business and government deposits | 573,430 | 569,315 | | Term deposits in denominations of $100,000 or more | 523,000 | 546,000 | [Note 10: Other Liabilities](index=76&type=section&id=3.6.10%20Note%2010%3A%20Other%20Liabilities) Other Liabilities (millions of Canadian dollars) | Metric | July 31, 2025 | October 31, 2024 | | :------------------------------------ | :------------ | :--------------- | | Accounts payable, accrued expenses, and other items | 8,062 | 7,706 | | Accrued salaries and employee benefits | 5,713 | 5,386 | | Provisions | 1,651 | 3,675 | | Total | 30,185 | 51,878 | [Note 11: Subordinated Notes and Debentures](index=76&type=section&id=3.6.11%20Note%2011%3A%20Subordinated%20Notes%20and%20Debentures) - The Bank issued **EUR 750 million** of non-viability contingent capital (NVCC) fixed rate reset notes maturing on January 23, 2036[596](index=596&type=chunk) - The Bank issued **$1 billion** of NVCC medium-term notes maturing on February 1, 2035[597](index=597&type=chunk) - The Bank redeemed all of its outstanding **$3 billion 3.105%** NVCC medium-term notes due April 22, 2030, on April 22, 2025[599](index=599&type=chunk) [Note 12: Equity](index=77&type=section&id=3.6.12%20Note%2012%3A%20Equity) Shares and Other Equity Instruments Issued and Outstanding (thousands of shares or other equity instruments and millions of Canadian dollars) | Metric | July 31, 2025 (Number) | July 31, 2025 (Amount) | | :------------------------------------ | :--------------------- | :--------------------- | | Common Sh

Core Insights - Science World has received $240,000 in funding from TD Bank Group to support the Ken Spencer Science Park Re-Wild Project, aimed at restoring the park's ecosystem and enhancing biodiversity [1][3] - The project includes the introduction of pollinator habitats and the restoration of wetland areas, which will create a biologically rich environment [2][4] - Educational programs, such as Bioblitz events, are being developed to engage the community and track ecological progress [4][5] Funding and Support - TD Bank Group's funding is part of the TD Ready Commitment, which focuses on supporting green spaces in urban areas [3] - The funding will help create immersive educational environments and empower visitors to conserve natural areas [3] Project Details - The Ken Spencer Science Park spans over 35,000 square feet and has welcomed over 330,000 visitors since its reopening in March 2025 [8] - The project aims to restore over 4,000 square feet of the park, including at least 750 square feet for pollinator pathways [8] - The wetland revitalization has incorporated over 46 different aquatic and terrestrial plant types [8] Community Engagement - Over 355 participants have engaged in Bioblitz events, resulting in 206 observations of 110 different species [8] - The project aims to inspire the next generation of environmental stewards and field ecologists through hands-on learning experiences [4][5]

Group 1 - Toronto-Dominion Bank reported better than expected earnings, aligning with the performance of most Canadian banking peers [1] - The results indicate the company's ability to grow and provide value to investors [1] Group 2 - The article highlights the importance of dividend stocks for passive income and retirement planning [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Financial Data and Key Metrics Changes - The bank reported earnings of $3.9 billion and EPS of $2.20, with a strong quarter driven by robust fee and trading income [13][14] - The CET1 ratio was 14.8%, reflecting strong capital generation, and the bank repurchased 46 million shares for over CAD 4 billion [14][44] - Total bank TTPP increased by 13% year over year, with revenue growing by 10% driven by higher fee income and trading-related revenue [31][32] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking achieved record revenue, earnings, deposits, and loan volumes, with RESO volumes surpassing $400 billion [15][36] - U.S. Retail saw core loans grow by 2% year over year, with bank card balances up 12% reaching $3 billion [16][38] - Wealth Management and Insurance delivered record earnings and assets, with direct investing trades per day up 18% year over year [19][41] Market Data and Key Metrics Changes - The U.S. economy showed resilience despite trade uncertainties, with the bank's U.S. Retail segment expected to grow core loans without breaching asset limitations [8][28] - The bank's investment portfolio repositioning resulted in a $1.3 billion pretax loss but is expected to generate a $500 million NII benefit in fiscal 2025 [29][30] Company Strategy and Development Direction - The bank announced a strategic relationship with Fiserv to simplify its portfolio and reduce costs, enhancing client experience [11] - The bank is focused on digital and mobile leadership, with plans to share strategies at the upcoming Investor Day [21][22] - Ongoing investments in AML remediation and governance are expected to continue, with a focus on strengthening the bank's risk management capabilities [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Canadian and U.S. economies, highlighting the need for decisive leadership to navigate trade challenges [6][9] - The bank is positioned to manage through economic uncertainties with prudent provisioning and strong capital positions [50][51] - Future profitability is expected to improve despite ongoing remediation costs, with a focus on productivity initiatives [88][89] Other Important Information - The bank incurred restructuring charges of $333 million pretax in Q3, with expected annual savings of $550 million to $650 million [33][34] - The bank's allowance for credit losses increased to $9.7 billion, reflecting additional reserves for policy and trade uncertainties [50] Q&A Session Summary Question: Update on AML remediation and balance sheet restructuring - Management confirmed that the majority of management remediation actions are expected to be completed by the end of 2025, with some extending into 2026 and 2027 [91][92] Question: Impact of loan runoff on profitability - Management indicated that while there will be a runoff scenario, core underlying growth is still taking place in various segments, with expectations for revenue dynamics to remain strong [55][88] Question: Expense growth and its drivers - Management acknowledged that the majority of year-over-year expense growth is governance and control related, with ongoing investments in AML and other risk programs [65][66] Question: Capital markets activity and growth expectations - Management expressed confidence in continued growth in capital markets, with a diversified approach across various industries contributing to revenue [78][80]