TD Bank reported fiscal fourth‑quarter results that surpassed analyst expectations, with adjusted diluted earnings per share of C$2.18 versus a consensus estimate of C$2.01. The beat of C$0.17, or 8.5 %, was driven by stronger fee and trading income, record loan and deposit volumes in Canadian Personal and Commercial Banking, and a 31 % year‑over‑year increase in U.S. Retail net income to C$719 million.
Revenue for the quarter was C$15.49 billion, slightly below the C$15.51 billion reported in Q4 2024, but it matched the consensus forecast of C$15.49 billion. The flat revenue trajectory reflects a mix of modest growth in Canadian core banking and a 31 % jump in U.S. Retail income, offset by a 1 % decline in Wealth Management and Insurance net income, which rose to C$699 million from C$650 million in the prior year.
Adjusted net income climbed to C$3.91 billion, up 22 % from C$3.24 billion in Q4 2024. The increase was largely attributable to higher fee and trading income, which grew 12 % YoY, and a 77 % rise in Wholesale Banking net income to C$494 million, driven by record revenue of C$2.20 billion. Lower-than‑expected provisioning costs also helped lift profitability.
The bank announced a dividend increase to C$1.08 per share, up from C$1.05, representing a 2.9 % rise and a yield of 3.57 %. The adjustment reflects TD’s confidence in sustaining cash flow and its commitment to returning value to shareholders while maintaining capital for strategic investments.
Management highlighted continued momentum in U.S. Retail, noting that the segment’s return on equity (excluding Schwab) improved 140 basis points from Q4 2024. The bank’s CEO, Raymond Chun, emphasized that disciplined cost management and a focus on high‑margin fee income are positioning the U.S. growth engine for mid‑teen ROE once regulatory constraints ease.
Looking ahead, TD maintained its full‑year 2025 guidance, reaffirming revenue expectations of C$15.5 billion and adjusted operating income of C$3.9 billion. The guidance signals confidence in the bank’s ability to sustain growth in both Canadian and U.S. markets while continuing to invest in governance and control initiatives to address past AML compliance issues.
The results reinforce TD’s strategy of leveraging its Canadian franchise while scaling its U.S. growth engine, with the bank’s strong performance in Wealth Management, Wholesale Banking, and U.S. Retail underscoring the effectiveness of its cross‑border expansion and fee‑income focus.
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