Dominion Bank(US:TD) Jing Ji Guan Cha Wang·2026-02-12 22:55Core Viewpoint - Toronto-Dominion Bank (TD) is facing significant regulatory, financial, and operational challenges, particularly related to an ongoing money laundering investigation by the U.S. Department of Justice, which may impact its growth in the U.S. market [1][2]. Regulatory Situation - The investigation into the money laundering case involving former Vice President Wilfredo Aquino of TD's New York branch is ongoing, with Aquino admitting to conspiracy charges on January 6, 2026, and facing a potential 20-year prison sentence [2]. - This case follows a $3 billion fine imposed on TD in October 2024 for anti-money laundering failures, which may lead to increased scrutiny of cross-border banking operations between the U.S. and Canada, limiting TD's growth in the U.S. due to prior settlement agreements [2]. Performance Strategy - TD reported better-than-expected results for Q4 2025, with earnings per share reaching CAD 2.18 and revenues of CAD 16.03 billion [3]. - The management has set growth targets for fiscal 2026, aiming for a 6%-8% increase in earnings per share and a 13% return on equity, alongside plans for a CAD 6-7 billion share buyback [3]. - The bank's ability to meet these targets while controlling spending growth will be crucial [3]. Company Business Status - TD is enhancing its anti-money laundering framework by adding over 700 new specialists and upgrading its monitoring systems [4]. - In wealth management, the bank launched a new plan in August 2025, targeting USD 10 billion in managed assets within two years [4]. - Ongoing challenges include macroeconomic uncertainties, fluctuations in credit quality, and potential changes in financial regulation [4].