Record adjusted earnings signal a reset in TD’s growth story after a bruising year
TD Bank Group reported a stronger-than-expected start to fiscal 2026, with first‑quarter profit rising to $4.04 billion from $2.79 billion a year earlier as trading, wealth and Canadian retail operations all pulled more weight than in 2025.
The result amounted to reported diluted earnings of $2.34 per share, up from $1.55, while adjusted earnings climbed to $2.44 a share from $2.02. That beat the average analyst estimate of $2.26 per share compiled by LSEG Data & Analytics.
Reported net income grew 45% year over year, while adjusted earnings increased 16%, helped by lower credit costs and slimmer one‑off charges.
TD’s provision for credit losses fell to $1.04 billion from $1.21 billion, suggesting that expected loan losses had started to ease even as economic uncertainty persisted.
Canadian banking and AI investments
Canadian personal and commercial banking remained the profit engine, generating record net income of $2.04 billion, up 12% from a year earlier, on a 5% rise in revenue to $5.42 billion and lower credit provisions.
The unit booked record deposit and loan volumes and its highest quarterly credit‑card acquisitions in more than a decade, supported by “record existing client pre‑approvals and new client credit card deepening rates,” the bank said.
TD highlighted early use cases for artificial intelligence across its branch network, credit‑card business and real‑estate lending, including a GenAI “Branch Virtual Assistant” and “agentic AI capability in Real Estate Secured Lending to accelerate speed‑to‑decision.”
U.S. banking, markets and wealth rebound
US banking posted reported net income of $1.04 billion, up sharply from a year earlier, helped by balance‑sheet restructuring and lower provisions, partly offset by higher spending on governance and Bank Secrecy Act/anti‑money‑laundering remediation. On an adjusted basis, US banking earned $1.01 billion.
Wealth Management and Insurance delivered $757 million in net income, a record, as client assets and insurance premiums grew.
Wholesale banking also reported record revenue of $2.47 billion, up 24% year over year, with net income of $561 million driven by “strong execution across Global Markets, and Corporate and Investment Banking,” according to the bank.
Capital and restructuring
TD closed the quarter with a Common Equity Tier 1 capital ratio of 14.5%, remaining well above regulatory minimums even after absorbing $200 million in restructuring charges, largely tied to cost‑cutting initiatives, and a special credit from the reversal of a U.S. Federal Deposit Insurance Corp. assessment.
“TD delivered strong first quarter results, including record adjusted earnings and significant year‑over‑year adjusted return on equity growth, reflecting momentum across our businesses as we advance our Investor Day goals,” group president and chief executive Raymond Chun said.
“We are deploying AI‑enabled applications across TD, enhancing how we work, and creating new, intuitive and personalized experiences for our clients.”
Meanwhile, other Big Six banks have already reported their Q1 2026 financials, including CIBC, RBC, National Bank, BMO, and Scotiabank.
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