TD Bank Reports Flat Income In Q1 2025 Amid Rise In Credit Loss Provision
TD Bank Group (TSX: TD) has reported adjusted net income of $3.62 billion for the first quarter of fiscal 2025, narrowly down from $3.64 billion a year ago but significantly above the $3.21 billion recorded last quarter.
Reported net income of $2.79 billion for Q1 2025 dipped slightly from the $2.82 billion posted in the same period last year and declined from $3.64 billion last quarter. Diluted earnings per share on a reported basis remained flat year over year at $1.55, compared with $1.97 last quarter. Adjusted diluted EPS ticked up slightly to $2.02 from $2.00 a year ago.
On the revenue front, total revenue rose to $14.05 billion from $13.71 billion last year, but decreased from $15.51 billion recorded last quarter. The bank’s net interest income grew 5% year over year, coming in at $7.87 billion versus $7.49 billion in Q1 2024. However, non-interest income edged lower from $6.23 billion in the prior year’s quarter to $6.18 billion.
The Canadian Personal and Commercial Banking segment posted net income of $1.83 billion, up 3% year over year. Revenue reached a record $5.15 billion, a 5% increase driven by loan and deposit volume expansion.
On the US Retail segment, excluding the bank’s stake in The Charles Schwab Corporation, saw reported net income fall 79% year over year to $143 million. Adjusted net income declined 15% to $839 million. The firm said that results were impacted by substantial balance sheet restructuring charges, ongoing governance and control investments (particularly in BSA/AML remediation), and higher credit loss provision.
Wealth Management and Insurance net income rose 23% year over year to $680 million, while Wholesale Banking reported net income of $299 million, up 46% from Q1 2024.
While recognized in Q2 2025 rather than Q1, TD’s complete divestiture of its remaining equity stake in Schwab for proceeds of approximately US$14.6 billion is expected to yield a net gain of $8.6 billion. Pro forma estimates suggest an approximate 238 basis-point boost to TD’s Common Equity Tier 1 ratio from Q1 levels, with an anticipated rise to around 14.2% if the bank completes its planned $8.0 billion in share repurchases.
TD’s non-interest expenses of $8.07 billion in Q1 2025 showed a marginal rise from $8.03 billion a year ago. Management noted that expenses remain “somewhat elevated,” driven in part by integration costs, US remediation spending, and governance investments.
Provision for credit losses also increased to $1.21 billion from $1.00 billion in the same quarter last year and from $1.11 billion last quarter.
The bank declared dividends at $1.05 per fully paid common share payable on and after April 30, 2025.
TD last traded at $85.67 on the TSX.
Information for this briefing was found via Sedar and the sources 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.
