TD Bank Group (TSX: TD) posted Q3 2026 net income of $4,62 billion, up from $3.34 billion a year earlier, while raising the expected fiscal-year cost of its US anti-money laundering remediation program.
On an adjusted basis, net income reached $4.67 billion, compared with $3.87 billion a year earlier. Adjusted diluted EPS was $2.77, up from $2.20 last year, beating the $2.47 analyst consensus cited by The Wall Street Journal, based on FactSet estimates.
Reported revenue climbed to $16.89 billion from $15.30 billion last year. Net interest income increased to $9.30 billion from $8.53 billion last year.
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Operating activities used $5.86 billion of cash during Q3, compared with using $21.69 billion a year earlier.
The reported efficiency ratio improved to 50.2% from 55.7% last year. Adjusted return on common equity rose to 16.0% from 13.2% last year.
Canadian Personal and Commercial Banking earned $2.10 billion, up from $1.95 billion last year while US Banking net income rose to $1.07 billion from $760.0 million. Wealth Management and Insurance earned $841.0 million from $703.0 million and Wholesale Banking delivered the largest percentage increase, with net income reaching $743.0 million from $398.0 million last year.
TD maintained its fiscal 2026 targets for adjusted ROE of approximately 13%, adjusted EPS growth of 6% to 8%, and CET1 capital above 13%. The bank moved its PCL outlook toward the lower end of its previous 40-to-50-basis-point range. Canadian and U.S. Banking both expect net interest margins to increase modestly in Q4 under current rate and competitive assumptions.
The larger change to guidance came from compliance spending. TD now expects fiscal 2026 US BSA/AML remediation and related governance and control investments of approximately US$550.0 million pre-tax, up from its previous US$500.0 million estimate because of higher costs associated with lookback activities. The bank incurred US$125.0 million of US BSA/AML remediation costs during Q3 and said significant remediation milestones remain through calendar 2027.
Provision for credit losses declined to $917.0 million from $971.0 million last year as gross impaired loans fell to $5.14 billion from $5.33 billion a year earlier, although total allowances for credit losses increased sequentially to $9.56 billion from $9.45 billion.
TD’s CET1 ratio finished Q3 at 14.3%, down from 14.8% a year earlier. The bank also maintained its quarterly dividend at $1.12 per share.
TD Bank last traded at $165.87 on TSX.
