TD Bank unveils cost-saving measures, sets revenue targets

Core Insights - Toronto-Dominion Bank (TD Bank) has announced a strategic plan to reduce costs while reinstating its growth guidance, aiming for a 16% adjusted return on equity and 7% to 10% growth in adjusted earnings per share by the end of fiscal 2029 [1][2] Cost Reduction and Growth Strategy - The bank plans to implement cost-saving measures amounting to C$2 billion to C$2.5 billion (approximately $1.4 billion to $1.8 billion) annually to achieve its targets [2] - Part of the savings will come from an ongoing restructuring initiative, with additional reductions expected through advancements in automation and artificial intelligence (AI), projected to save C$500 million annually [3] Business Expansion Plans - TD Bank aims to expand its fee-generating businesses, particularly in wealth management, by hiring 1,200 new advisers in Canada and 500 in the US to increase client engagement and product sales [3] Leadership and Governance Changes - TD Bank Group president and CEO Raymond Chun emphasized the bank's commitment to building a simpler, faster, and more efficient organization to outpace the market and accelerate growth [4] - The bank has initiated several changes, including a 2% workforce reduction and the sale of its stake in Charles Schwab, with proceeds funding a share buyback program valued between C$6 billion and C$7 billion [5][6] Shareholder Returns - TD Bank projects to return around C$15 billion in excess capital to shareholders by 2026, indicating a strong focus on delivering long-term value [6]