Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — The Toronto-Dominion Bank — Q3 2025 Earnings Presentation

55 slides from Toronto-dominion Bank's earnings presentation, Aug 28, 2025

1. Slide 1: Quarterly Results Presentation

   Quarterly Results Presentation TD Bank Group Q3 2025 August 28, 2025

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: Decisive actions in F'25 to support TD's future

   Decisive actions in F'25 to support TD's future Leadership and Adjusting capital Simplifying Driving structural Board renewal deployment business portfolio cost reduction and with ROE focus efficiency Accelerated CEO Sold TD's 10.1% stake Sold ~US$9B Identified $550MM to transition in Schwab, releas

4. Slide 4: Q3 2025 Performance

   Q3 2025 Performance Net Income EPS2 PTPP1,3 Growth (YoY) Total Assets Reported: $3.3B Reported: $1.89 Reported: >100% $2.0T Adjusted1: $3.9B Adjusted1: $2.20 Adjusted1: 12.6% Efficiency Ratio2 ROE2 ROTCE2 CET 14 Reported: 55.7% Reported: 11.3% Reported: 13.6% 14.8% Adjusted, Net of ISE1,2: 57.8.% Ad

5. Slide 5: Strong Execution Across our Businesses

   Strong Execution Across our Businesses Canadian Personal & Commercial Banking U.S. Retail  Record revenue, earnings, deposit and loan volumes  AML remediation is the #1 priority  Record YTD digital sales in day-to-day products  Achieved ~10% asset reduction target and investment (personal chequi

6. Slide 6: Continued Adoption of our Digital Channels

   Continued Adoption of our Digital Channels Canadian P&C1 U.S. Retail1 Home & Auto Insurance Digital Adoption (% of total customers)2 +140bps +95bps End-to-End Digital Sales (% of all transactions)7 66.1 57.6 +1,320 bps 64.7 56.7 46.9 33.7 Q3/24 Q3/25 Q3/24 Q3/25 Mobile Users (millions)3 +5.9% +2.1%

7. Slide 7: Q3 2025 Sustainability Highlights

   Q3 2025 Sustainability Highlights  TD Bank N.A. earned an "Outstanding" rating on the Community Reinvestment Act performance evaluations, reflecting our longstanding support of financial literacy, affordable housing and local businesses1  TD Bank N.A. and TD Bank USA have held this rating in perfo

8. Slide 8: U.S. BSA / AML Remediation

   U.S. BSA / AML Remediation1 Complete majority of Management Remediation Actions in 2025 With significant work and important milestones remaining in 2026 and 2027 2024 2025 2026 2027 2028 Internal Audit Validation and Monitor and Regulatory Engagement Following Monitor and Regulatory Review, addition

9. Slide 9: U.S. Balance Sheet Restructuring

   U.S. Balance Sheet Restructuring1 Progress Update As of July 31, 2025, total assets of ~US$386B vs. US$434B asset limitation2  Loans reduced by ~US$4B reflecting run-off and additional sales in non-core loan portfolios in Q3'25  Paid down ~US$10B of borrowings using mainly proceeds from loan sales

10. Slide 10: Q3 2025 Highlights

    Q3 2025 Highlights Strong quarter P&L ($MM) Reported Q3/25 QoQ YoY EPS of $1.89 (Adj1 $2.20, up 7% YoY) Revenue 15,297 (33%) 8% PTPP $6.8B (Adj1 $5.4B, up 13% YoY, excl. U.S. Strategic Insurance Service Expenses Card Portfolio partners' share (SCP), FX, & ISE) (ISE) 1,563 10% (6%) Revenue up 8% YoY

11. Slide 11: Restructuring Program

    Restructuring Program Deliver structural cost reduction across the Bank Program size  Expect to incur total restructuring charges of $600MM to $700MM pre-tax over several quarters1  $163MM pre-tax / $122MM after-tax was incurred in Q2'25  $333MM pre-tax / $248MM after-tax was incurred in Q3'25 Im

12. Slide 12: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking Record revenue, earnings, deposit and loan volumes P&L ($MM) Reported Q3/25 QoQ YoY Net income up 4% YoY; PTPP up 5% YoY Revenue 5,241 5% 5% Revenue up 5% YoY PCL 463 -$159 +$28 Impaired 376 -$52 + $38  Volume growth Performing 87 -$107 -$10  Loan volumes up

13. Slide 13: U.S. Retail

    U.S. Retail Continued momentum & significant P&L (US$MM) (except where noted) progress on balance sheet restructuring Reported Q3/25 QoQ YoY Net income of US$554MM (Adj1 US$695MM) Revenue 2,532 38% (2%) PTPP of US$800MM (Adj1 US$988MM) PCL 231 -$80 -$45 Revenue down 2% YoY (Adj1 up 5%) Impaired 240

14. Slide 14: Wealth Management & Insurance

    Wealth Management & Insurance Strong underlying business P&L ($MM) performance Reported Q3/25 QoQ YoY Revenue 3,673 5% 10% Net income up 63% YoY; PTPP up 66% YoY Insurance Service Expenses 1,563 10% (6%)  Insurance impacted by severe weather events in (ISE) prior year Revenue, net of ISE 2,110 1% 2

15. Slide 15: Wholesale Banking

    Wholesale Banking Strong quarter driven by revenue growth P&L ($MM) Reported Q3/25 QoQ YoY Net income up 26% YoY (Adj1 up 12% YoY) Revenue 2,063 (3%) 15% PTPP up 17% (Adj1 up 7%) Global Markets 1,286 (10%) 23% Investment Banking 809 11% 4% Revenue up 15% YoY PCL 71 -$52 -$47 Impaired 63 +$2 -$46  H

16. Slide 16: Corporate Segment

    Corporate Segment Reported net loss of $478MM (Adj1 P&L ($MM) net loss of $164MM) Reported Q3/25 Q2/25 Q3/24  Reported net loss includes items of note Net Income (Loss) (478) 8,215 (401)  Higher revenue from treasury and Adjustments for items of note balance sheet activities partially offset Amort

17. Slide 17: Capital

    Capital1 Strong capital and liquidity QoQ CET 1 ratio management CET 1 ratio 14.8%, down 5 bps 61 bps QoQ (29) bps (5) bps 1 bp (8) bps  Strong internal capital generation (25) bps 0 bps +32 bps  Share buyback decreased CET 1 by 25 Adjusted Internal bps 14.9% Capital Generation 14.8%  Losses from

18. Slide 18: Gross Impaired Loan Formations

    Gross Impaired Loan Formations By Business Segment GIL Formations1: $MM and Ratios2 Highlights 28 25  Gross impaired loan formations 22 26 bps 21 increased quarter-over-quarter, driven by: $2,657 $2,432 – A small number of borrowers $292 / $2,433 $123 / 12 bps in the Wholesale Banking and 30 bps $3

19. Slide 19: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Business Segment GIL: $MM and Ratios1 Highlights 52 56 51 56 bps  Gross impaired loans 44 increase quarter-over-quarter, largely recorded in: $5,453 $5,334 – The Wholesale Banking $4,949 $5 / 6 bps $4 / 5 bps and U.S. Commercial $4,866 lending portfolios $5 / 6 bps $42

20. Slide 20: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Business Segment PCL: $MM and Ratios1,2,3 Highlights Wealth Management & Insurance  PCL decrease of 17 basis points Wholesale Banking $1,341 quarter-over-quarter reflected Canadian Personal & Commercial Banking $1,212 broadly across: $1,109 $123 U.S. Retail (net

21. Slide 21: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) Impaired and Performing PCL1 ($MM) Highlights Q3/24 Q2/25 Q3/25  Impaired PCL decrease quarter- Total Bank 1,072 1,341 971 over-quarter largely driven by: Impaired 920 946 904 − Canadian Personal & Performing 152 395 67 Commercial Banking segment Canadian Personal

22. Slide 22: Allowance for Credit Losses (ACL)

    Allowance for Credit Losses (ACL) ACL1: $B and Coverage Ratios2 101 103 Highlights 99  ACL increased $116 million 93 95 United States quarter-over-quarter, reflecting: Canada $9.1 $9.6 $9.6 $9.7 – Additional performing $8.8 reserves related to policy 56% 57% 56% 55% and trade uncertainty 56% – High

23. Slide 23: Appendix

    Appendix 24 23

24. Slide 24: Q3 2025: Items of Note

    Q3 2025: Items of Note ($MM) EPS ($) Segment SFI Reference1 Pre-Tax After Tax Reported net income and EPS (diluted) 3,336 1.89 Items of note Amortization of acquired intangibles2 33 25 0.01 Corporate Page 4, L13, L29 & L45 Acquisition and integration charges related to the Cowen acquisition 32 25 0.

25. Slide 25: U.S. Strategic Card Portfolio: Accounting

    U.S. Strategic Card Portfolio: Accounting Illustrative Example Values below are shown for illustrative purposes only. The percent share is representative of the agreements with the retailer card partners, but the exact split differs by partner. Illustrative Example $MM Credit Card Portfolio 1,000 Me

26. Slide 26: Q3 2025: PTPP & Operating Leverage

    Q3 2025: PTPP & Operating Leverage1,2 Modified for partners' share of SCP PCL, FX and Insurance Service Expense Q3 2025 Q2 2025 Q3 2024 TOTAL BANK SFI Reference Revenue Expenses Revenue Expenses Revenue Expenses Reported Results ($MM) 15,297 8,522 22,937 8,139 14,176 11,012 Page 2, L3 & L6 1 PTPP 6,

27. Slide 27: Net Interest Income Sensitivity (NIIS)

    Net Interest Income Sensitivity (NIIS)1 Strong deposit base and disciplined ALM management NII impact from 25 bps change in short-term interest rates2 NII impact from 100 bps change in interest rates across the curve2 ($ in Q3'25 Q2'25 ($ in Q3'25 Q2'25 CAD CAD MM) +25bps -25bps +25bps -25bps MM) +1

28. Slide 28: Customer Activity

    Customer Activity Canadian Personal and Commercial U.S. Retail Average Volumes Global Wealth Assets2 Banking Average Volumes ($B) (US$B)1 ($B) 5% 300 2 Year CAGR 1,400 12% 600 5% 250 0% 1,200 500 122 129 114 -1% 100 1,000 772 200 104 101 400 450 161 464 170 689 425 158 94 97 800 611 300 150 91 600 2

29. Slide 29: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking Margins, Volumes and Efficiency Net Interest Margin (NIM)1 Average Loans ($B)2 572 578 583 585 594 122 123 126 128 129 2.82% 2.83% 2.81% 2.80% 2.81% 450 454 458 458 464 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Personal Business Efficiency Rat

30. Slide 30: U.S. Retail

    U.S. Retail Margins, Volumes and Efficiency Net Interest Margin (NIM)1,2 Average Loans (US$B)3 3.20% 193 193 193 187 180 3.12% 3.05% 3.19% 3.01% 3.02% 97 96 95 93 3.04% 91 2.86% 3.00% 2.77% 96 97 98 93 89 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Reported Adjusted Adjusted excl. Li

31. Slide 31: Wealth Management & Insurance

    Wealth Management & Insurance Volumes and Efficiency Insurance Premiums ($MM) Average AverageLoans Loans($B) $B 2,011 6.9 7.4 7.2 7.0 1,853 1,831 1,602 6.7 1,514 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Efficiency Ratio Average AverageDeposits Deposits($B) $B 70.4% 65.7% 56.1% 54.

32. Slide 32: Wealth Management & Insurance

    Wealth Management & Insurance Wealth Revenue $MM Wealth Assets ($B) 1,738 1,737 600 1,669 1,594 1,558 1,600 287 299 709 291 687 236 233 651 654 632 240 210 198 214 572 188 556 542 1,200 500 523 530 521 512 448 480 800 415 400 400 1,160 1,211 1,228 1,137 1,164 0 300 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/2

33. Slide 33: Wholesale Banking

    Wholesale Banking Revenue Loans1 Q3 2025 Q3 2025 -2% 5% 39% $2.1B 39% $96.8B 56% 62% Corporate and Other2 Canada United States International Global Markets Investment Banking 33

34. Slide 34: Gross Lending Portfolio

    Gross Lending Portfolio Period-End Balances ($B unless otherwise noted) Q2/25 Q3/25 Canadian Personal and Commercial Portfolio 591.4 604.1 Personal 460.6 470.6 Residential Mortgages 267.4 266.5 Home Equity Lines of Credit (HELOC) 128.6 138.0 Indirect Auto 30.6 31.4 Credit Cards 21.0 21.6 Other Perso

35. Slide 35: Industries of Focus Policy and Trade Uncertainty

    Industries of Focus Policy and Trade Uncertainty Highlights  Gross loans to industries most Automotive, 19% Sundry exposed to policy and trade Remaining sectors Manufacturing & uncertainty were $87 billion1 individually <4% Wholesale, 16% – Representing ~9% of Total Bank gross loans Industries of F

36. Slide 36: Commercial Real Estate (CRE)

    Commercial Real Estate (CRE) Commercial Real Estate Portfolio Overview: Highlights $99B  Commercial Real Estate represented $99B or 10% of Total Bank gross loans and acceptances1 Office Retail – Portfolio is well diversified across 10% 17% geographies and sub segments Other 5% – 58% of CRE portfoli

37. Slide 37: Canadian Real Estate Secured Lending Portfolio

    Canadian Real Estate Highlights Secured Lending Portfolio  Total Canadian real estate secured lending portfolio at $407B Maturity Schedule ($B)1 $105.0 $107.5 – 91% of RESL portfolio is amortizing4, of Variable Rate which 74% of HELOC portfolio is Fixed Rate $27.6 $42.5 amortizing $71.4 $65.2 $15.8

38. Slide 38: Canadian Personal Banking

    Canadian Personal Banking Canadian Personal Banking (Q3/25)1 Highlights Gross Loans ($B) GIL ($MM) GIL/Loans (%)  Continued good asset quality Residential Mortgages 266.5 350 0.13 in Canadian Personal Banking Home Equity Lines of Credit (HELOC) 138.0 211 0.15 Indirect Auto 31.4 124 0.39 Credit Card

39. Slide 39: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Canadian Commercial and Wholesale Banking (Q3/25) Highlights Gross Loans/ GIL GIL/Loans BAs ($B) ($MM) (%)  Gross impaired loans Commercial Banking1 133.5 964 0.72 increased quarter-over Wholesale Banking 86.4 600 0.69 quarter, driven by: Total Canadian Com

40. Slide 40: U.S. Personal Banking

    U.S. Personal Banking U.S. Personal Banking (Q3/25) Highlights Gross Loans GIL GIL/Loans In USD unless otherwise specified ($B) ($MM) (%)  Good credit performance in Residential Mortgages 33.8 398 1.18 U.S. Personal Banking Home Equity Lines of Credit (HELOC)1 8.7 214 2.46 Indirect Auto 31.1 242 0.

41. Slide 41: U.S. Commercial Banking

    U.S. Commercial Banking U.S. Commercial Banking (Q3/25) Highlights Gross Loans/ GIL GIL/Loans In USD unless otherwise specified BAs ($B) ($MM) (%)  Gross impaired loans Commercial Real Estate (CRE) 29.1 537 1.85 increased quarter-over- Non-residential Real Estate 19.0 409 2.15 quarter driven by a s

42. Slide 42: Provision for Credit Losses – Impaired

    Provision for Credit Losses – Impaired1 By Geographic Location Canada U.S. Total Bank Impaired PCL Rate - Personal 0.30% 1.60% 0.59% 0.28% 0.29% 0.49% 0.49% 0.24% 0.26% 1.29% 1.26% 0.47% 1.21% 1.22% 0.45% Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/24 Q4/24 Q1/25 Q2'25 Q3/25 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Canad

43. Slide 43: Endnotes on Slides 3-4

    Endnotes on Slides 3-4 Slide 3 1. The Bank's expectations regarding the restructuring program are subject to inherent uncertainties and are based on the Bank's assumptions regarding certain factors, including rate of natural attrition, talent re-deployment opportunities, years-of-service, execution

44. Slide 44: Endnotes on Slide 5

    Endnotes on Slide 5 Slide 5 1. The Bank’s ability to successfully dispose of the assets is subject to inherent risks and uncertainty and there is no guarantee that the Bank will be able to sell the assets in the timeline outlined or achieve the purchase price which it currently expects. The ability

45. Slide 45: Endnotes on Slides 6-7

    Endnotes on Slides 6-7 Slide 6 1. Canadian Personal and Commercial: based on Canadian Personal, Small Business and Commercial banking. U.S. Retail: based on U.S. Retail and Small Business banking. 2. Active digital users as a percentage of total customer base. Canadian Personal, Small Business and C

46. Slide 46: Endnotes on Slides 8-9

    Endnotes on Slides 8-9 Slide 8 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 of previously disclosed investigations related to its U.S. BSA/AML com

47. Slide 47: Endnotes on Slides 10-12

    Endnotes on Slides 10-12 Slide 10 1. Please refer to Slide 4, Endnote 1. 2. The Bank’s expectations regarding expense growth are based on the Bank’s assumptions regarding certain factors, including risk and control investments, timing of business investments, employee-related expenses, foreign excha

48. Slide 48: Endnotes on Slides 13-15

    Endnotes on Slides 13-15 Slide 13 1. Please refer to Slide 4, Endnote 1. 2. Please refer to Slide 5, Endnote 1. 3. Please refer to Slide 5, Endnote 2. 4. Net interest margin is calculated by dividing U.S. Retail segment’s net interest income by average interest-earning assets excluding the impact re

49. Slide 49: Endnotes on Slides 16-19

    Endnotes on Slides 16-19 Slide 16 1. Please refer to Slide 4, Endnote 1. 2. Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of acquired intangibles relating to the share

50. Slide 50: Endnotes on Slides 20-24

    Endnotes on Slides 20-24 Slide 20 1. PCL Ratio: Provision for Credit Losses on a quarterly annualized basis/Average Net Loans & Acceptances. 2. Net Total Bank and U.S. Retail PCL ratios exclude credit losses associated with the retailer program partners' share of the U.S. Strategic Cards Portfolio,

51. Slide 51: Endnotes on Slides 26-28

    Endnotes on Slides 26-28 Slide 26 1. Please refer to Slide 4, Endnote 1. 2. Operating leverage is a non-GAAP measure. At the total Bank level, TD calculates operating leverage as the difference between the % change in adjusted revenue (U.S. Retail in source currency) net of insurance service expense

52. Slide 52: Endnotes on Slides 29-36

    Endnotes on Slides 29-36 Slide 29 1. Please refer to Slide 12, Endnote 2. 2. Numbers may not add due to rounding. Slide 30 1. Please refer to Slide 4, Endnote 1. 2. Please refer to Slide 13, Endnote 4. 3. Numbers may not add due to rounding. 4. Insured deposit accounts. Slide 32 1. Please refer to S

53. Slide 53: Endnotes on Slides 37-38

    Endnotes on Slides 37-38 Slide 37 1. Excludes revolving HELOC, Wholesale mortgage portfolio. 2. RESL Portfolio Current Loan to Value is calculated with the Teranet-National Bank House Price Index and weighted by the total exposure, based on outstanding mortgage balance and/or the HELOC authorized cr

54. Slide 54: Endnotes on Slides 39-42

    Endnotes on Slides 39-42 Slide 39 1. Includes Small Business Banking and Business Credit Cards. 2. Consumer includes: Food, Beverage and Tobacco; Retail Sector. 3. Industrial/Manufacturing includes: Industrial Construction and Trade Contractors; Sundry Manufacturing and Wholesale Banking. 4. Other i

55. Slide 55: Investor Relations Contacts

    Investor Relations Contacts Phone: (416) 308-9030 or 1 (866) 486-4826 Email: tdir@td.com Website: www.td.com/investor 55

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