Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — The Toronto-Dominion Bank — Q1 2026 Earnings Presentation

44 slides from Toronto-dominion Bank's earnings presentation, Feb 26, 2026

  1. Slide 1: Quarterly Results Presentation

    Quarterly Results Presentation TD Bank Group – Q1 2026 – February 26, 2026 Title Slide SECTION ONE

  2. Slide 2: Caution Regarding Forward-Looking Statements

    Caution Regarding Forward-Looking Statements From time to time, the Bank (as defined in this document) 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

  3. Slide 3: Q1 2026 Performance

    Q1 2026 Performance Net Income EPS2 PTPP1,3 Growth (YoY) Total Assets Reported: $4.0B Reported: $2.34 Reported: 31.0% $2.1T Adjusted1: $4.2B Adjusted1: $2.44 Adjusted1: 18.9% Efficiency Ratio2 ROE2 ROTCE2 CET14 Reported: 52.8% Reported: 13.6% Reported: 16.3% 14.5% Adjusted, Net of ISE1: 57.1% Adjust

  4. Slide 4: Strong Momentum Across our Businesses

    Strong Momentum Across our Businesses Canadian Personal & Commercial Banking U.S. Banking  Record revenue, PTPP1, earnings, deposit and loan volumes  Continued progress on AML remediation, our #1 priority  RESL loans up 5% YoY with record Q1 originations in proprietary  Loans down 9% YoY, or up

  5. Slide 5: Deeper, Faster, Disciplined

    Deeper, Faster, Disciplined Deeper Relationships Simpler & Faster Disciplined Execution In Canada, record penetration rates for Rolled out Gen AI Virtual Assistant across Driving strong cost management & consumer & small business credit cards 1000+ branches in Canada deeper understanding of unit cos

  6. Slide 6: Q1 2026 Brand and Sustainability Highlights

    Q1 2026 Brand and Sustainability Highlights Announced multi-year Purchased ~US$23MM agreement with Charm to MassDevelopment bond to purchase carbon removal support affordable housing in credits Massachusetts Announced expansion of low-cost and 1 no-cost banking options for Indigenous Peoples from Ca

  7. Slide 7: U.S. BSA / AML Remediation

    U.S. BSA / AML Remediation1 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 remediation a

  8. Slide 8: Q1 2026 Highlights

    Q1 2026 Highlights P&L ($MM) Q1/26 QoQ YoY Reported Strong quarter Revenue 16,585 7% 18% Insurance Service Expenses (ISE) 1,622 1% 8% EPS of $2.34 (Adj1 $2.44, up 21% YoY) Revenue, net of ISE1,2 14,963 8% 19% PTPP1 $7.8B (Adj1 $5.9B, up 19% YoY, excl. U.S. Strategic Card Portfolio PCL 1,039 +$57 -$1

  9. Slide 9: Driving structural cost reduction across TD

    Driving structural cost reduction across TD Completed Restructuring Program  $200MM pre-tax / $148MM after-tax restructuring charges in Q1'26 Program size  Total restructuring program charges of $886MM pre-tax  Expect F'26 savings of ~$500MM pre-tax1 Impact on expenses  Expect fully realized ann

  10. Slide 10: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking P&L ($MM) Q1/26 QoQ YoY Record revenue, PTPP1, earnings, deposit & loan volumes Revenue 5,421 2% 5% PCL 436 -$101 -$85 Net income up 12% YoY; PTPP1 up 7% YoY Impaired 424 -$23 -$35 Revenue up 5% YoY Performing 12 -$78 -$50 Expenses 2,147 -1% 3%  Volume growth

  11. Slide 11: U.S. Banking

    U.S. Banking P&L (US$MM) (except where noted) Q1/26 QoQ YoY Reported Sustained business momentum Revenue 2,941 13% 42% PCL 212 -$8 -$106 Net income up >100% YoY (Adj1 up 22% YoY) Impaired 284 +$46 -$87 PTPP1 up >100% YoY (Adj1 up 7% YoY) Revenue up 42% YoY (Adj1 up 8%) Performing (72) -$54 -$19  Re

  12. Slide 12: Wealth Management & Insurance

    Wealth Management & Insurance Record earnings and assets P&L ($MM) Q1/26 QoQ YoY Net income up 11% YoY; PTPP1 up 12% YoY Revenue up 9% YoY Revenue 3,906 3% 9% Insurance Service Expenses (ISE) 1,622 1% 8%  Insurance: Higher insurance earned premiums Revenue, net of ISE1 2,284 4% 9%  Wealth Manageme

  13. Slide 13: Wholesale Banking

    Wholesale Banking Record revenue and earnings P&L ($MM) Q1/26 QoQ YoY Reported Revenue 2,470 12% 24% Net income up $262MM YoY (Adj1 up $221MM YoY) Global Markets 1,652 23% 29% PTPP1 up $442MM (Adj1 up $390MM) Corporate & Investment Banking 846 -7% 14% PCL 172 +$148 +$100 Revenue up 24% YoY Impaired

  14. Slide 14: Corporate Segment

    Corporate Segment P&L ($MM) Q1/26 Q4/25 Q1/25 Reported net loss of $359MM (Adj1 net loss of $153MM) Reported  Reported net loss includes items of note Net Income (Loss) (359) (497) (359) Adjustments for items of note  YoY higher revenue from treasury and balance sheet management activities, Amorti

  15. Slide 15: Capital

    Capital1 Disciplined capital and liquidity management QoQ CET1 ratio CET1 ratio 14.5%, down 15 bps QoQ 67 bps  Strong adjusted2 earnings net of dividends, partially offset by RWA growth (31) bps (excl. model / methodology updates and FX), delivering strong adjusted2 (18) bps (3) bps 4 bps 3 bps 1 b

  16. Slide 16: Gross Impaired Loan Formations

    Gross Impaired Loan Formations By Business Segment GIL Formations1: $MM and Ratios2 Highlights  Gross impaired loan formations increased 25 26 27 bps 21 23 4 basis points quarter-over-quarter, largely reflected in: $2,579 – The Wholesale Banking and U.S. $2,432 $2,433 commercial lending portfolios

  17. Slide 17: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Business Segment GIL: $MM and Ratios1 Highlights  Gross impaired loans increased 2 basis points 56 56 58 bps quarter-over-quarter, largely recorded in: 51 56 – The U.S. Commercial and Canadian consumer portfolios $5,594 $5,453 $5,420 $5,334 $5 / 6 bps $3 / 3 bps $3 / 3

  18. Slide 18: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Business Segment Highlights PCL: $MM and Ratios1,2,3 Wealth Management & Insurance  PCL increased quarter-over-quarter, Wholesale Banking largely reflected in Wholesale Banking $1,341 Canadian Personal & Commercial Banking  Partially offset by lower provisions

  19. Slide 19: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) Impaired and Performing Highlights PCL1 ($MM) Q1/25 Q4/25 Q1/26  Impaired PCL increased quarter-over-quarter, driven by: Total Bank 1,212 982 1,039 Impaired 1,216 943 1,164 – The Wholesale Banking and U.S. commercial lending portfolios Performing (4) 39 (125) Canad

  20. Slide 20: Allowance for Credit Losses (ACL)

    Allowance for Credit Losses (ACL) ACL1: $B and Coverage Ratios2 Highlights 101 103 101 99 99 bps  ACL decreased $144 million quarter-over-quarter, United States reflecting: $9.7 $9.7 $9.6 Canada $9.6 $9.6 – A $156 million impact of foreign exchange ‒ Improvement in the macroeconomic forecasts 57% 5

  21. Slide 21: Appendix

    Appendix 20 — TD QUARTERLY RESULTS PRESENTATION

  22. Slide 22: Q1 2026: Items of Note

    Q1 2026: Items of Note ($MM) EPS ($) Segment SFI Reference1 Pre-Tax After Tax Reported net income and EPS (diluted) 4,043 2.34 Items of note Amortization of acquired intangibles 34 26 0.01 Corporate Page 4, L13, L26 & L39 Restructuring charges 200 148 0.09 Corporate Page 4, L16, L28 & L42 Impact fro

  23. Slide 23: U.S. Strategic Card Portfolio

    U.S. Strategic Card Portfolio Illustrative Example of Accounting Assuming 10% decrease in partner share* ($MM) Mechanics: Before After Credit Card Portfolio 1,000 • TD collects revenue. Credit Loss Reserve 100 100 • TD establishes a reserve for the total Revenue 150 Partners' Share 80% 70% credit lo

  24. Slide 24: Q1 2026: PTPP & Operating Leverage

    Q1 2026: PTPP1 & Operating Leverage1 Modified for partners' share of SCP PCL, FX and Insurance Service Expense TOTAL BANK Q1 2026 Q4 2025 Q1 2025 SFI Reference Revenue Expenses Revenue Expenses Revenue Expenses Reported Results ($MM) 16,585 8,753 15,494 8,808 14,049 8,070 Page 2, L3 & L6 1 PTPP1 7,8

  25. Slide 25: 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 NII impact from 100 bps change in interest rates across the curve1 ($ in CAD Q1'26 Q4'25 ($ in CAD Q1'26 Q4'25 MM) MM) +100bps -100bps +100bps -100bps

  26. Slide 26: 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 +5.0% +1.8% +730 bps 8.7 5.1 5.2 79.2 8.2 71.9 11 6+ 90+ Q1/25 Q1/26 Medium-term Q1/25 Q1/26 Medium-ter

  27. Slide 27: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking Margins, Volumes and Efficiency Net Interest Margin (NIM)1 Average Loans ($B)2 583 585 594 607 615 126 128 129 131 134 2.81% 2.82% 2.83% 2.82% 2.83% 458 458 464 475 482 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Personal Commerical Efficiency R

  28. Slide 28: U.S. Banking

    U.S. Banking Margins, Volumes and Efficiency Net Interest Margin (NIM)1 Average Loans (US$B)2 193 187 180 177 175 3.38% 95 93 91 87 84 160 159 160 163 164 3.20% 3.01% 3.05% 3.12% 3.19% 3.25% 3.04% 98 93 89 90 91 2.77% 2.86% 3.00% Q4/24 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q2/25 Q3-25 Q4-25 Q1/26 1 Re

  29. Slide 29: Wealth Management & Insurance

    Wealth Management & Insurance Volumes and Efficiency Insurance Premiums ($MM) Average Loans ($B) 2,011 1,927 8.1 1,514 1,602 1,502 7.4 7.2 7.0 7.4 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Efficiency Ratio Average Deposits ($B) Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 WM&I 32.6% 32.3% 31.4% 3

  30. Slide 30: Wealth Management & Insurance

    Wealth Management & Insurance Wealth Revenue & NIAT ($MM) Wealth Assets ($B) 2,000 800 759 771 316 333 700 709 1,600 287 299 687 291 654 261 253 601 610 240 210 600 556 572 214 542 1,200 574 557 500 521 800 512 480 400 400 300 1,211 1,164 1,228 1,291 1,324 0 200 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q

  31. Slide 31: Wholesale Banking

    Wholesale Banking Q1/26 Revenue Q1/26 Loans1 -1% 4% 34% $2.5B 42% $93.9B 54% 67% Global Markets Corporate and Other2 Investment Canada United States International Banking 30 — TD QUARTERLY RESULTS PRESENTATION

  32. Slide 32: Gross Lending Portfolio

    Gross Lending Portfolio Period-End Balances ($B unless otherwise noted) Q4/25 Q1/26 Canadian Personal and Commercial Portfolio 614.5 619.3 Personal 479.5 482.1 Residential Mortgages 264.5 258.8 Home Equity Lines of Credit (HELOC) 147.9 156.4 Indirect Auto 32.1 32.0 Credit Cards 21.9 21.9 Other Perso

  33. Slide 33: 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 $102.9 $418B Variable Rate $87.3 Fixed Rate $78.9 $68.3 $40.1 $19.7 – 91% of RESL portfolio is amortizing4 $22.9 $38.2 $41.4 − 76% of HELOC portfolio is amortiz

  34. Slide 34: Canadian Personal Banking

    Canadian Personal Banking Highlights Canadian Personal Banking (Q1/26)1  Increase in gross impaired loans quarter-over-quarter largely recorded in the RESL portfolio, and primarily Gross Loans ($B) GIL ($MM) GIL/Loans (%) related to seasoning Residential Mortgages 258.8 467 0.18 Home Equity Lines o

  35. Slide 35: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Highlights Canadian Commercial and Wholesale Banking (Q1/26)  Gross impaired loans decreased quarter-over-quarter, driven Gross Loans GIL/Loans GIL ($MM) by: ($B) (%) Commercial Banking1 137.2 912 0.66 – The Canadian Commercial Banking portfolio Wholesale B

  36. Slide 36: U.S. Personal Banking

    U.S. Personal Banking Highlights U.S. Personal Banking (Q1/26)  Continued good asset quality in U.S. Personal Banking Gross Loans GIL GIL/Loans In USD unless otherwise specified ($B) ($MM) (%) Residential Mortgages 34.0 412 1.21 Home Equity Lines of Credit (HELOC)1 9.0 224 2.48 Indirect Auto 31.7 2

  37. Slide 37: U.S. Commercial Banking

    U.S. Commercial Banking Highlights U.S. Commercial Banking (Q1/26)  Gross impaired loans increased quarter-over-quarter, driven Gross Loans GIL GIL/Loans by a small number of borrowers across various industries In USD unless otherwise specified ($B) ($MM) (%) Commercial Real Estate (CRE) 28.2 493 1

  38. Slide 38: Provision for Credit Losses – Impaired

    Provision for Credit Losses – Impaired1 By Geographic Location Canada U.S. Total Bank Impaired PCL Rate - Personal 0.30% 0.30% 0.31% 1.60% 0.59% 0.29% 0.49% 0.50% 0.51% 0.26% 1.31% 1.31% 0.45% 1.21% 1.22% Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Q1/25 Q2'25 Q3/25 Q4/25 Q1/26 Q1/25 Q2/25 Q3/25 Q4/25 Q1/26 Canad

  39. Slide 39: Endnotes on Slides 2 to 4

    Endnotes on Slides 2 to 4 Slide 2 1. The Bank prepares its Interim Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS), the current generally accepted accounting principles (GAAP), and refers to results prepared in accordance with IFRS as the “repo

  40. Slide 40: Endnotes on Slides 5 to 10

    Endnotes on Slides 5 to 10 Slide 5 1. Source: Brand Finance Global 500 2026. Slide 6 1. As previously disclosed in the Bank’s 2024 MD&A, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a resolution (the "Global Res

  41. Slide 41: Endnotes on Slides 11 to 19

    Endnotes on Slides 11 to 19 Slide 11 1. Please refer to Slide 2, Endnote 1. 2. Includes AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment. Slide 12 1. Please refer to Slide 2, Endnote 1. Slide 13 1. Please refer to Slide 2, Endnote

  42. Slide 42: Endnotes on Slides 21 to 30

    Endnotes on Slides 21 to 30 Slide 21 1. This column refers to specific page(s) and line items of the Bank's Q1 2026 Supplementary Financial Information package. 2. Please refer to Slide 13, Endnote 2. 3. Please refer to Slide 2, Endnote 1. Slide 23 1. Please refer to Slide 2, Endnote 1. 2. Adjusts f

  43. Slide 43: Endnotes on Slides 31 to 37

    Endnotes on Slides 31 to 37 Slide 31 1. U.S. HELOC includes Home Equity Lines of Credit and Home Equity Loans. 2. Includes loans measured at fair value through other comprehensive income. Slide 32 1. Excludes revolving HELOC, Wholesale mortgage portfolio. 2. RESL Portfolio Current Loan to Value is c

  44. Slide 44: Investor Relations Contacts

    Investor Relations Contacts Phone: (416) 308-9030 or 1 (866) 486-4826 Email: tdir@td.com Website: https://www.td.com/investor-relations 43 — TD QUARTERLY RESULTS PRESENTATION

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