Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Group — Q2 2026 Earnings Presentation

52 slides from Toronto-dominion Bank's earnings presentation, 2026

  1. Slide 1: Investor Presentation – TD Bank Group Q2 2026

    Investor Presentation TD Bank Group – Q2 2026 Title Slide SECTION ONE

  2. Slide 2: Caution Regarding Forward-Looking Statements

    Caution Regarding Forward-Looking Statements From time to time, TD Bank Group (“TD” or the “Bank”) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in

  3. Slide 3: TD Bank Group

    TD Bank Group Overview of TD Bank Group Credit Update Strong Balance Sheet & Capital Position 2 — TD INVESTOR PRESENTATION Q2 2026 NB: Explanatory endnotes are included on Slides 45-50.

  4. Slide 4: TD Snapshot

    TD Snapshot Our Businesses Canadian Personal & Commercial Banking ▪ Personal banking, credit cards and auto finance ▪ Small business, commercial banking, merchant solutions and equipment finance U.S. Banking Canadian Wealth ▪ Personal banking, credit cards and auto finance Q2 2026 P&C U.S. Mgmt. & ▪

  5. Slide 5: Top North American Bank

    Top 10 North American Bank Canadian North American Q2 2026 (C$ except otherwise noted) TD Bank Group Ranking1 Ranking2 Total assets $2,085B 2nd 6th Total deposits $1,243B 2nd 6th Market capitalization $241.7B 2nd 6th Reported net income (trailing four quarters) $14.9B 2nd 4th Adjusted net income3 (t

  6. Slide 6: Scaled, Diversified North American Bank

    Scaled, Diversified North American Bank Four Key Business Lines Canadian Personal & Commercial Banking Q2 2026 Reported Earnings Mix1 ▪ The Personal Bank is a premier retail banking franchise delivering personalized solutions through a full suite of products and services across deposits, investing,

  7. Slide 7: Deeper, Faster, Disciplined

    Deeper, Faster, Disciplined Deeper Relationships Simpler & Faster Disciplined Execution Canadian Personal Banking generated Realigning Small Business Banking to U.S. Banking ROE1 8.2% (Adj2 9.6%) ~$9B in closed referrals to Wealth this Canadian Personal Banking to accelerate and Wholesale Banking RO

  8. Slide 8: Canadian P&C Banking – F'26 Strategic Priorities

    Canadian P&C Banking – F'26 Strategic Priorities Deeper Relationships Simpler & Faster Disciplined Execution Outgrow Canadian population growth in Modernize and automate processes and Leverage automation, digital tools and AI- net new clients and lead in core banking platforms, and leverage AI to de

  9. Slide 9: U.S. Banking – F'26 Strategic Priorities

    U.S. Banking – F'26 Strategic Priorities Deeper Relationships Simpler & Faster Disciplined Execution Reimagine retail, providing capacity to Continue balance sheet restructuring Continue remediating the U.S. BSA/AML deliver advice enabled by digital efforts that simplify the business program and str

  10. Slide 10: Wealth Management & Insurance – F'26 Strategic Priorities

    Wealth Management & Insurance – F'26 Strategic Priorities Deeper Relationships Simpler & Faster Disciplined Execution Deepen client relationships with CPB, Simplify client experiences in Wealth by Reduce structural costs in Wealth CBB and TD Insurance, and drive referrals deploying new self-serve, d

  11. Slide 11: Wholesale Banking – F'26 Strategic Priorities

    Wholesale Banking – F'26 Strategic Priorities Deeper Relationships Simpler & Faster Disciplined Execution Strengthen client relationships by aligning Continue to simplify organizational Strengthen risk management and resources to priority sectors structure and hire top talent compliance by increasin

  12. Slide 12: Q2 2026 Performance

    Q2 2026 Performance Net Income EPS PTPP1 Growth (YoY) Total Assets Reported: $4.3B Reported: $2.43 Reported: (49.8%) $2.1T Adjusted1: $4.2B Adjusted1: $2.38 Adjusted1: 11.7% Efficiency Ratio ROE ROTCE2 CET1 Reported: 53.0% Reported: 14.7% Reported: 17.7% 14.3% Adjusted, Net of ISE1: 57.0% Adjusted1:

  13. Slide 13: Driving Structural Cost Reduction and AI Leadership

    Driving Structural Cost Reduction and AI Leadership Targeting ~$2-2.5B annualized savings over Adopting AI at scale medium-term1 Medium-term target value2 Distribution Technology & Data Transformation Modernization ~$500MM & ~$500MM Annualized Annualized ~$350-450MM ~$350-400MM Revenue Uplift Cost S

  14. Slide 14: U.S. BSA / AML Remediation

    U.S. BSA / AML Remediation1 Work on management remediation actions, including demonstrated sustainability, will continue through 2026 and 2027 2024 2025 2026 2027 2028 Internal Audit Validation and Monitor and Regulatory Engagement Following Monitor and Regulatory Review, additional management remed

  15. Slide 15: Digital leadership enables deeper engagement and growth

    Digital leadership enables deeper engagement and growth Canada1,2 U.S.1,2 Home & Auto Insurance1 Clients Digitally Engaged Mobile Users (millions)3 Mobile Users (millions)3 (% of total customers)5 +4.5% +1.3% +610 bps 8.8 5.2 5.2 74.0 80.1 8.4 11 6+ 90+ Q2/25 Q2/26 Medium-term Q2/25 Q2/26 Medium-ter

  16. Slide 16: Q2 2026 Brand and Sustainability Highlights

    Q2 2026 Brand and Sustainability Highlights Strong Employer Brand Sustainability Highlights ▪ Issued two green bonds totaling ~$1.8B across Canadian and European markets ▪ First bank to join CleanAI Initiative to advance AI solutions creating sustainable outcomes 2025 Sustainability Report ▪ Through

  17. Slide 17: TD Bank Group

    TD Bank Group Overview of TD Bank Group Credit Update Strong Balance Sheet & Capital Position 16 — TD INVESTOR PRESENTATION Q2 2026

  18. Slide 18: Well-reserved for elevated economic and credit uncertainty

    Well-reserved for elevated economic and credit uncertainty Allowance Coverage Ratio (bps)1 140 126 120 101 100 97 99 95 97 89 86 74 2 2 Q1’20 2020 2021 2022 2023 2024 2025 Q1'26 Q2'26 17 — TD INVESTOR PRESENTATION Q2 2026

  19. Slide 19: History of strong credit quality

    History of strong credit quality Net impaired loans and PCL ratios (bps) Net impaired loans as a % of net loans and acceptances (bps) Provision for credit losses as a % of net average loans and acceptances (bps) 100 46 48 46 45 47 Q2'26 39 41 43 43 38 32 34 41 40 41 Q2'26 37 37 36 34 34 33 39 20 25

  20. Slide 20: Gross Lending Portfolio

    Gross Lending Portfolio Period-End Balances ($B unless otherwise noted) Q1/26 Q2/26 Canadian Personal and Commercial Portfolio 619.3 623.3 Personal 482.1 482.8 Residential Mortgages 258.8 250.8 Home Equity Lines of Credit (HELOC) 156.4 164.2 Indirect Auto 32.0 32.3 Credit Cards 21.9 22.5 Other Perso

  21. Slide 21: Allowance for Credit Losses (ACL)

    Allowance for Credit Losses (ACL) ACL1: $B and Coverage Ratios2 Highlights 103 101 101 99 ▪ ACL decreased $147 million quarter-over-quarter, 97 bps United States reflecting: $9.7 $9.6 Canada $9.6 $9.7 $9.5 ‒ Lower impaired allowance in Wholesale Banking 56% 55% 55% 54% 53% ‒ Partially offset by a pe

  22. Slide 22: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Business Segment GIL: $MM and Ratios1 Highlights ▪ Gross impaired loans decreased 4 basis points quarter-over-quarter, mainly driven by: 56 56 58 54 bps 51 – Wholesale Banking segment $5,420 $5,594 $5,334 $5,281 $3 / 3 bps $3 / 3 bps $4,866 $4 / 5 bps $3 / 3 bps $5 / 7

  23. Slide 23: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Business Segment Highlights PCL: $MM and Ratios1,2,3 Wealth Management & Insurance ▪ PCL stable quarter-over-quarter Wholesale Banking $1,341 Canadian Personal & Commercial Banking $123 U.S. Banking (net) Corporate $1,039 $982 $1,001 $971 $71 $24 $172 $78 $622 $4

  24. Slide 24: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) Impaired and Performing Highlights PCL1 ($MM) Q2/25 Q1/26 Q2/26 ▪ Impaired PCLs decreased quarter-over-quarter, recorded in: Total Bank 1,341 1,039 1,001 Impaired 946 1,164 973 ‒ The Wholesale Banking, U.S. Banking, and Corporate segments Performing 395 (125) 28 Can

  25. Slide 25: Provision for Credit Losses – Impaired

    Provision for Credit Losses – Impaired1 By Geographic Location Canada U.S. Total Bank Impaired PCL Rate - Personal 0.30% 0.31% 0.32% 0.29% 0.49% 0.50% 0.51% 0.50% 0.26% 1.31% 1.31% 0.45% 1.21% 1.22% 1.22% Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Q2'25 Q3/25 Q4/25 Q1/26 Q2/26 Q2/25 Q3/25 Q4/25 Q1/26 Q2/26 Canad

  26. Slide 26: Canadian Personal Banking

    Canadian Personal Banking Highlights Canadian Personal Banking (Q2/26)1 ▪ Continued good asset quality in Canadian Personal Banking Gross Loans ($B) GIL ($MM) GIL/Loans (%) Residential Mortgages 250.8 512 0.20 Home Equity Lines of Credit (HELOC) 164.2 244 0.15 Indirect Auto 32.3 134 0.42 Credit Card

  27. Slide 27: Canadian Real Estate Secured Lending Portfolio

    Canadian Real Estate Secured Lending Portfolio Highlights Maturity Schedule ($B)1 ▪ Total Canadian real estate secured lending portfolio at $100.4 $418B Variable Rate $87.8 $81.0 Fixed Rate $38.9 $18.8 – 91% of RESL portfolio is amortizing4 $48.9 $56.5 $50.3 $16.6 $18.9 − 76% of HELOC portfolio is a

  28. Slide 28: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Highlights Canadian Commercial and Wholesale Banking (Q2/26) ▪ Gross impaired loans decreased quarter-over-quarter, driven Gross Loans GIL/Loans GIL ($MM) by: ($B) (%) Commercial Banking1 140.5 1,004 0.71 – Wholesale Banking portfolio Wholesale Banking 104.7

  29. Slide 29: U.S. Personal Banking

    U.S. Personal Banking Highlights U.S. Personal Banking (Q2/26) ▪ Lower gross impaired loans in U.S. Personal Banking Gross Loans GIL GIL/Loans driven by Cards and RESL portfolios In USD unless otherwise specified ($B) ($MM) (%) Residential Mortgages 33.8 378 1.12 Home Equity Lines of Credit (HELOC)1

  30. Slide 30: U.S. Commercial Banking

    U.S. Commercial Banking Highlights U.S. Commercial Banking (Q2/26) ▪ Gross impaired loans stable quarter-over-quarter Gross Loans GIL GIL/Loans In USD unless otherwise specified ($B) ($MM) (%) Commercial Real Estate (CRE) 27.8 461 1.66 Non-residential Real Estate 17.5 277 1.58 Residential Real Estat

  31. Slide 31: Non-Bank Financial Institutions (NBFI)

    Non-Bank Financial Institutions (NBFI) Highlights Business & Government Loans Composition ($B) ▪ Gross loans to the financial sector within our business & government portfolio represents $61.9 Financials ($B) $61.9B – Of which: $34.1B are loans to NBFI Investment Funds – Five-year average impaired l

  32. Slide 32: TD Bank Group

    TD Bank Group Key Themes Overview of TD Bank Group Credit Update Strong Balance Sheet & Capital Position 31 — TD INVESTOR PRESENTATION Q2 2026

  33. Slide 33: Capital

    Capital1 Disciplined capital and liquidity management QoQ CET1 ratio CET1 ratio 14.3%, down 26 bps QoQ 66 bps ▪ Strong earnings net of dividends and modest RWA growth drove strong (31) bps organic capital accretion this quarter (15) bps 1 bps (3) bps (3) bps (41) bps ▪ Share buyback program decrease

  34. Slide 34: Capital

    Capital1 Non-CET1 Capital Management Risk-Based TLAC Ratio2 Current Risk-based TLAC Ratio: 31.1%3 13.3% ▪ TD’s capital instruments are diversified by structure, market, and Published Minimum Risk-based TLAC Ratio: 25.0% currency, contributing to the resilience and stability of its capital 1.8% posit

  35. Slide 35: Disciplined Liquidity Management

    Disciplined Liquidity Management Liquidity Ratios5 Large base of personal and business deposits1 that make up 70% of the Bank's total funding 141% 141% 138% 138% 137% ▪ TD Canada Trust ranked #1 in Core Deposits2 – more 129% 130% 130% than 80% of clients onboard with a chequing or savings 119% accou

  36. Slide 36: Strong Credit Ratings

    Strong Credit Ratings Issuer Ratings1 Moody's S&P DBRS Fitch2 Senior Debt3 Ratings A2 A- AA (low) AA- Outlook Stable Stable Stable Stable Moody's S&P Fitch A1 A AA- Senior Debt3 / HoldCo4 Rating A2 A- A+ A3 BBB+ A TD Canadian U.S. TD Canadian U.S. TD Canadian U.S. Peers5 Peers6 Peers5 Peers6 Peers5

  37. Slide 37: Low Risk, Deposit Rich Balance Sheet

    Low Risk, Deposit Rich Balance Sheet Large base of stable retail and commercial deposits ▪ Personal and business deposits are TD's primary sources of funds – Customer service business model delivers stable base of “sticky” and franchise deposits ▪ Wholesale funding profile reflects a balanced secure

  38. Slide 38: Wholesale Term Debt Composition

    Wholesale Term Debt Composition Funding Strategy ▪ Wholesale term funding through diversified sources across domestic and international markets ▪ Manage to a stable funding profile that emphasizes funding assets and contingencies to the appropriate term ▪ Well-established C$100B Legislative Covered

  39. Slide 39: TD Global Legislative Covered Bond Program

    TD Global Legislative Covered Bond Program Key Highlights Covered Bond Collateral ▪ Canadian residential real estate property with no more than 4 residential units ▪ Uninsured conventional first lien assets with original loan to value ratio that is 80% or less Housing Market Risks ▪ Latest property

  40. Slide 40: TD Global Legislative Covered Bond Program

    TD Global Legislative Covered Bond Program Remaining Term Highlights 29% ▪ Pool comprises 100% uninsured 1st lien Canadian Residential Mortgages originated by TD 19% 13% 13% 12% ▪ All loans have original LTVs of 80% or lower. Current weighted average LTV is 58.61% 1 7% 5% ▪ The weighted average of n

  41. Slide 41: Bail-in Overview

    Bail-in Overview Step 1: Step 2: Step 3: Scope of Bail-in Pre-loss balance Losses diminish Convert NVCC then, sheet assets and equity if applicable, bail-in ▪ In Scope Liabilities. Senior unsecured long-term debt (original term to maturity of 400 or more days) that debt into equity is tradable and t

  42. Slide 42: Limited Recourse Capital Notes (LRCNs)

    Limited Recourse Capital Notes (LRCNs) LRCN Overview ▪ LRCN holders’ interests rank equally with other LRCNs and Preferred Shares and are senior to common shares. LRCNs are issued only to institutional investors with no trading restrictions within the U.S. nor, after 4 months, within Canada ▪ LRCN's

  43. Slide 43: Non-Viability Contingent Capital (NVCC)

    Non-Viability Contingent Capital (NVCC) ▪ Credit hierarchy is codified as a principle in regulatory and legislative documents in Canada In March 2023, OSFI issued this statement illustrating regulatory intent of the ▪ Point of Non-Viability trigger occurs when OSFI determines the bank is no longer v

  44. Slide 44: Net Interest Income Sensitivity (NIIS)

    Net Interest Income Sensitivity (NIIS) Strong deposit base and disciplined ALM management NII impact from 25 bps change in short-term interest rates1,2 NII impact from 100 bps change in interest rates across the curve1,2 ($ in CAD Q2'26 Q1'26 ($ in CAD Q2'26 Q1'26 MM) MM) +100bps -100bps +100bps -10

  45. Slide 45: Endnotes

    Endnotes 44 — TD INVESTOR PRESENTATION Q1 2026

  46. Slide 46: Endnotes on Slides 3 to 6

    Endnotes on Slides 3 to 6 Slide 3 1. Deposits based on total of average personal and business deposits during the quarter. U.S. Banking includes Schwab Insured Deposit Accounts (IDAs). 2. Total Loans based on total of average personal and business loans during the quarter. 3. Includes assets under a

  47. Slide 47: Endnotes on Slides 11 to 13

    Endnotes on Slides 11 to 13 Slide 11 1. Please refer to Slide 4, Endnote 3. 2. Please refer to Slide 3, Endnote 4. 3. Please refer to Slide 6, Endnote 3. 4. The Bank’s expectations regarding expense growth are based on the Bank’s assumptions regarding certain factors, including governance and contro

  48. Slide 48: Endnotes on Slides 14 to 23

    Endnotes on Slides 14 to 23 Slide 14 1. Numbers may not add due to rounding. 2. Canada: based on Personal Banking, Direct Investing (excluding self-serve transactions) and Business Banking. U.S.: based on U.S. retail banking and small business banking. 3. Users who have logged in via their mobile de

  49. Slide 49: Endnotes on Slides 24 to 32

    Endnotes on Slides 24 to 32 Slide 24 1. Stage 3 provision for (recovery of) credit losses (impaired) as a % of Average Net Loans and Acceptances, on a quarterly annualized basis. Primarily based on the geographic location responsible for recording the transaction. International not shown. Includes l

  50. Slide 50: Endnotes on Slides 33 to 40

    Endnotes on Slides 33 to 40 Slide 33 1. Please refer to Slide 32, Endnote 1. 2. Reflects debt outstanding as at, and converted at FX rate as at April 30, 2026. Numbers may not add due to rounding. 3. These measures have been calculated in accordance with OSFI's Total Loss Absorbing Capacity (TLAC) g

  51. Slide 51: Endnotes on Slides 41 to 43

    Endnotes on Slides 41 to 43 Slide 41 1. Initially, the assets held in the Trust will consist of the series of Preferred Shares issued in connection with each LRCN series. Following the issuance of the LRCNs, the assets held in the Trust may also consist of (i) common shares issued upon a Trigger Eve

  52. Slide 52: Investor Relations Contacts

    Investor Relations Contacts Phone: (416) 308-9030 or 1 (866) 486-4826 Email: tdir@td.com Website: www.td.com/investor 51 — TD INVESTOR PRESENTATION Q2 2026

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