Fourth-quarter reported net income fell
TD Bank Group’s latest results showed firmer underlying performance even as reported profit slipped under the weight of restructuring charges and balance sheet actions.
Fourth-quarter reported net income fell 10% year over year to $3.3 billion, or $1.82 per share, while adjusted earnings climbed 22% to $3.9 billion, or $2.18 per share.
Analysts surveyed by LSEG Data & Analytics had expected an adjusted profit of $2.03 per share.
Full-year reported net income more than doubled to $20.54 billion, with adjusted net income rising to $15.03 billion.
Fourth-quarter results included a $485 million pre‑tax charge tied to balance sheet restructuring in US Retail and other activities, $190 million in restructuring charges, and ongoing costs related to the Cowen acquisition and terminated First Horizon hedging strategy.
“TD had a strong fourth quarter, delivering robust fee and trading income in our markets-driven businesses as well as volume growth year-over-year in Canadian Personal and Commercial Banking, capping a year of strong performance,” Raymond Chun, group president and chief executive officer of TD Bank Group, said.
Canadian personal and commercial banking net income edged up 2% to $1.87 billion, with record revenue of $5.31 billion on higher loan and deposit volumes.
US retail, excluding prior Schwab contributions, posted a 31% increase in reported net income to $719 million, supported by balance sheet restructuring and lower credit provisions.
Wealth management and insurance net income rose to $699 million, driven by record wealth earnings and fewer catastrophe losses, while Wholesale Banking delivered record revenue of $2.2 billion and record adjusted net income of $529 million.
TD finished the year with a common equity tier 1 ratio of 14.7%, well above regulatory minimums.
The bank also entered 2025 from a position of strength, having reported adjusted net income of $14.3 billion in fiscal 2024.
“As we enter fiscal 2026, TD is well-positioned to navigate changing economic dynamics and support the aspirations and needs of our clients,” Chun said. “We will continue to invest in our businesses, innovate for our clients, and contribute to the communities and economies we support.”
Other top lenders, such as RBC, Scotiabank, and National Bank also reported higher Q4 earnings.
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