TD Bank Group (TSX: TD) reported fiscal Q1 2026 results, posting reported net income of $4.04 billion, up from $2.79 billion a year earlier, translating to diluted EPS of $2.34.
The headline was strong, driven by higher revenue, lower year-over-year credit loss provisions, and improved operating leverage. Reported total revenue rose to $16.59 billion from $14.05 billion a year earlier, as net interest income increased to $8.79 billion from $7.87 billion and non-interest income rose to $7.80 billion from $6.18 billion.
Provision for credit losses declined year-over-year to $1.04 billion from $1.21 billion. However, insurance service expenses rose to $1.62 billion from $1.51 billion a year earlier and non-interest expenses increased to $8.75 billion from $8.07 billion. Despite this, the reported efficiency ratio improved sharply to 52.8% from 57.4%.
On adjusted basis, net income increased to $4.22 billion from $3.62 billion last year, translating to $2.44 earnings per diluted share. The adjustments included $34.0 million of amortization of acquired intangibles, $44.0 million tied to the terminated First Horizon Corporation acquisition-related capital hedging strategy, and $200.0 million of restructuring charges.
By segment, Canadian Personal and Commercial Banking again delivered the largest earnings contribution. Net income rose to a record $2.04 billion from $1.83 billion a year earlier on a record revenue of $5.42 billion.
US Banking posted the sharpest year-over-year swing with reported net income of $1.04 billion from $342.0 million last year. Revenue rose to $4.09 billion from $2.95 billion a year earlier.
Wealth Management and Insurance delivered record net income of $757.0 million, up from $680.0 million a year earlier, with its segment revenue jumping to $3.91 billion from $3.60 billion. On the other hand, Wholesale Banking reported record revenue of $2.47 billion, up from $2.00 billion a year earlier, leading to a net income of $561.0 million, up from $299.0 million.
CET1 was 14.5%, up from 13.1% last year while adjusted ROE increased to 14.2% from 13.2%.
On outlook, TD said its restructuring program ended January 31, 2026 with total pre-tax charges of $886.0 million and expects approximately $775.0 million of fully realized annual pre-tax savings.
The bank also maintained an expectation of roughly US$500.0 million pre-tax in fiscal 2026 for US BSA/AML remediation and related governance and control investments.
The bank declared a quarterly dividend of $1.08 per common share, up from $1.05 a year earlier and prior quarter.
TD Bank last closed at $132.96 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.
