TD Bank Group (TSX: TD) reported its fiscal Q4 2025 results, posting reported net income of $3.28 billion, down from $3.64 billion last year. This translates to $1.82 diluted EPS, down from $1.97.
The softer headline was not a revenue problem so much as a mix and noise problem. Reported total revenue was $15.49 billion versus $15.51 billion a year ago, flat, as net interest income rose 8% to $8.55 billion while non-interest income fell 8% to $6.95 billion.
Below revenue, provisions for credit losses declined 11% to $982 million from $1.11 billion, while insurance service expenses dropped 32% to $1.60 billion from $2.36 billion.
Reported non-interest expenses increased 9% to $8.81 billion from $8.05 billion, including $190 million of restructuring charges, and professional, advisory and outside services climbed to $1.33 billion from $1.08 billion. The reported efficiency ratio worsened to 56.8% from 51.9%.
Adjusted revenue rose 8% to $16.03 billion from $14.90 billion, adjusted net income increased 22% to $3.91 billion from $3.21 billion, and adjusted diluted EPS jumped to $2.18 from $1.72. The quarter’s items of note were dominated by $485 million of balance sheet restructuring, $190 million of restructuring charges, and $44 million of Cowen integration costs.
Breaking it down, Canadian Personal and Commercial Banking revenue hit a record $5.31 billion, up 5%, and net income rose 2% to $1.87 billion. Net interest income grew 6% to $4.30 billion on volume growth and a 2 bp net interest margin lift to 2.82%, but PCL rose 25% to $537 million, including performing PCL of $90 million versus a $26 million recovery last year.
US Retail improved, with reported net income excluding Schwab rising 31% to $719 million from $548 million, and adjusted net income excluding Schwab rising 29% to $1.01 billion from $780 million. Revenue increased 7% on an adjusted basis, net interest margin widened to 3.25% from 2.77%, and PCL fell to $304 million from $389 million, while expenses rose to $2.50 billion from $2.32 billion, reflecting higher governance and control investments including US$155 million of US BSA/AML remediation costs.
Wealth Management and Insurance saw the cleanest upside. Net income doubled to $699 million from $349 million as estimated catastrophe losses dropped to $15 million from $1.02 billion. Revenue declined 4% to $3.79 billion because last year included $718 million of reinsurance recoveries, but net interest income still climbed 21% to $389 million, and AUA rose 17% to $759 billion while AUM increased 13% to $601 billion.
Wholesale Banking printed revenue increasing 24% to a record $2.20 billion, while reported net income more than doubled to $494 million from $235 million as PCL fell to $24 million from $134 million. Net interest income swung to a $66 million loss from $221 million of income, while trading-related revenue rose to $865 million from $633 million, and non-interest expenses grew 17% to $1.56 billion.
CET1 was 14.7%, up from 13.1%, reported ROE slipped to 10.7% from 13.4%, but adjusted ROE improved to 12.8% from 11.7%. Adjusted efficiency ratio net of insurance service expenses improved to 59.2% from 61.7%, even as reported efficiency worsened. Book value per share increased to $68.78 from $59.59.
The full-year numbers are headline-friendly but heavily shaped by Schwab. Reported net income rose to $20.54 billion from $8.84 billion and reported diluted EPS jumped to $11.56 from $4.72, helped by the sale of Schwab shares that generated $21.0 billion of proceeds and an $8.6 billion net gain.
Adjusted net income, which strips items of note, rose a more modest 5% to $15.03 billion from $14.28 billion, with adjusted diluted EPS up 7% to $8.37.
Operating cash flow was a $9.41 billion outflow in Q4 versus a $79.69 billion inflow last year, and a $69.65 billion outflow for the full year versus a $54.94 billion inflow.
The firm declared a quarterly dividend of $1.05 per common share, up from $1.02 a year ago.
TD last traded at $117.70 on the TSX.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
