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TD Bank Group reported strong financial results in Q4 2025 with earnings of $3.9 billion and EPS of $2.18, delivering robust top-line growth and positive operating leverage. The bank announced a three-cent dividend increase to $1.08 per share and maintained a CET1 ratio of 14.7%, signaling confidence in its growth trajectory. CEO Raymond Chun highlighted strategic initiatives, particularly AI-driven projects contributing $170 million in value with expectations for further growth. The bank remains optimistic about achieving its 2026 guidance of 6-8% EPS growth and a 13% ROE, underpinned by consistent performance across Canadian and U.S. operations. The implementation of AI use cases and investment portfolio repositioning are expected to provide continued financial benefits. Management expressed a bullish outlook, citing strong business momentum and disciplined capital management as cornerstones for future success. Analyst inquiries focused on residential mortgage dynamics, capital allocation implications for buybacks, and the progress and future outlook of AML remediation efforts. Management reiterated their commitment to strategic priorities, emphasizing resilience in the face of economic uncertainties and potential market shifts.
Ray Chun opens by acknowledging strong quarter performance and economic challenges in trade dynamics.
TD implemented 75 AI use cases generating $170 million value; forecast $200 million in value for next year.
TD expects 6-8% EPS growth and 13% ROE targets for fiscal 2026.
Earnings of $3.9 billion, EPS at $2.18, and ROE up by 110 basis points YoY for Q4.
Announced a three-cent dividend increase, reflecting confidence in future growth.
Fiscal 2025 U.S. AML remediation investments were $507 million, aligning with guidance.
Fourth quarter saw an investment portfolio repositioning generating a $500 million pre-tax NII benefit.
Canadian personal and commercial banking achieved record revenue, deposits, and loan volumes in Q4.
U.S. retail expense growth expected in mid-single digits for the year, focusing on productivity initiatives.
TD delivered robust top-line growth and positive operating leverage, positioning well for the year ahead.
Earnings
$3.9 billion
EPS
$2.18
ROE
13%
110 basis points YoY
Dividend
$1.08 per share
Increased by three cents
CET1 Ratio
14.7%