TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 1
TD Bank Group Reports First Quarter 2025 Results
Report to Shareholders
Three months ended January 31, 2025
The financial information in this document is reported in Canadian dollars and is based on the Bank’s unaudited Interim Consolidated Financial Statements and
related Notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB),
unless otherwise noted. Certain comparative amounts have been revised to conform with the presentation adopted in the current period.
Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted measures are non-GAAP financial
measures. For additional information about the Bank’s use of non-GAAP financial measures, refer to “Significant and Subsequent Events” and “Non-GAAP and
Other Financial Measures” in the “How We Performed” section of this document.
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter last year:
●
Reported diluted earnings per share were $1.55, compared with $1.55.
●
Adjusted diluted earnings per share were $2.02, compared with $2.00.
●
Reported net income was $2,793 million, compared with $2,824 million.
●
Adjusted net income was $3,623 million, compared with $3,637 million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first quarter reported earnings figures included the following items of note:
●
Amortization of acquired intangibles of $61 million ($52 million after tax or 3 cents per share), compared with $94 million ($79 million after tax or
4 cents per share) in the first quarter last year.
●
Acquisition and integration charges related to the Cowen acquisition of $52 million ($41 million after tax or 2 cents per share), compared with
$117 million ($93 million after tax or 5 cents per share) in the first quarter last year.
●
Impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $54 million ($41 million after tax or
2 cents per share), compared with $57 million ($43 million after tax or 2 cents per share) in the first quarter last year.
●
U.S. balance sheet restructuring of $927 million ($696 million after tax or 40 cents per share).
TORONTO
, February 27, 2025 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ended January 31, 2025. Reported and
adjusted earnings were $2.8 billion and $3.6 billion, respectively, relatively flat compared with the first quarter last year.
“TD started the year with strong momentum and record revenue across many of our businesses. While expenses remain somewhat elevated, we delivered solid earnings,
which positions us well as we begin the new fiscal year,” said Raymond Chun, Group President and Chief Executive Officer, TD Bank Group. “U.S. AML remediation remains
our top priority and we continue to make consistent progress to strengthen the Bank. The strategic review is advancing as planned, and we have taken early action, such as
our divestiture of Schwab, as we develop our strategy and roadmap for the future.”
Canadian Personal and Commercial Banking delivered record revenue supported by continued volume growth
Canadian Personal and Commercial Banking net income was $1,831 million, an increase of 3% compared to the first quarter last year. This increase reflects higher revenue,
partially offset by higher non-interest expenses and provisions for credit losses (PCL). Revenue was a record $5,149 million, an increase of 5%, primarily reflecting loan and
deposit volume growth.
This quarter, the Canadian Personal Bank continued to build momentum, including deepening customer relationships by launching Real Estate Secured Lending and
Investing specialists in its highest opportunity branches. In addition, the TD Aeroplan Visa Infinite Card was recognized by Rewards Canada as Canada ’s top airline credit
card for the fourth year in a row
1
. In Business Banking, TD Auto Finance achieved record retail originations this quarter and a significant expansion of new dealer floor plan
relationships.
The U.S. Retail Bank delivered continued momentum while making progress on balance sheet restructuring
U.S. Retail reported net income for the quarter was $342 million (US$247 million), down 61% (62% in U.S. dollars), compared with the first quarter last year. On an adjusted
basis, net income was $1,038 million (US$736 million), down 12% (15% in U.S. dollars). Reported net income for the quarter from the Bank’s investment in The Charles
Schwab Corporation (“Schwab”) was $199 million (US$142 million), up 3% (down 1% in U.S. dollars), compared with the first quarter last year.
The U.S. Retail Bank, which excludes the Bank’s investment in Schwab, reported net income was $143 million (US$10 5 million), down 79% (79% in U.S. dollars), compared
with the first quarter last year, primarily reflecting the impact of balance sheet restructuring activities, governance and control investments including the Bank’s U.S. BSA/AML
remediation program, and higher PCL, partially offset by the impact of the FDIC special assessment charge in the first quarter last year. On an adjusted basis, net income was
$839 million (US$594 million), down 15% (18% in U.S. dollars) compared with the first quarter last year, reflecting higher non-interest expenses and higher PCL, partially
offset by higher revenue.
This quarter, the U.S. Retail Bank continued to deliver operating momentum, with its fifth consecutive quarter of personal deposit growth and double-digit growth in
U.S. Wealth assets year-over-year. The business also made significant progress in its balance sheet restructuring strategy to ensure it can continue to support its customers’
needs under the asset limitation.
Wealth Management and Insurance delivered record Wealth revenue, earnings and assets, and strong Insurance premium growth
Wealth Management and Insurance net income was $680 million, an increase of 23% compared with the first quarter last year, driven by record revenue, earnings and assets
in Wealth Management and strong insurance premiums growth. This quarter’s 15% revenue increase reflected insurance premiums growth and higher fee-based revenue
driven by market and asset growth, as well as higher interest income from deposits and increased transaction revenue.
This quarter, Wealth Management and Insurance continued to deliver investment excellence and innovative solutions. TD Direct Investing was ranked #1 Digital Brokerage in
Canada by The Globe and Mail for the third consecutive year. TD Asset Management received 24 Fundata FundGrade A+® Awards and was recognized in six categories at
1
Awarded by AwardsCanada.ca on January 3, 2025: https://rewardscanada.ca/TopTravelCreditCard/
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 2
the 2024 Canada LSEG Lipper Fund Awards. In addition, TD Insurance, with TD Securities as joint bookrunner, diversified its reinsurance capacity by becoming the first
Canadian insurer to sponsor a catastrophe bond solely focused on catastrophe perils in Canada.
Wholesale Banking delivered record revenue driven by its Global Markets business
Wholesale Banking reported net income for the quarter was $299 million, an increase of 46% compared with the first quarter last year, primarily reflecting higher revenue,
partially offset by higher PCL and non-interest expenses. On an adjusted basis, net income was $339 million, an increase of 14% compared with the first quarter last year.
Revenue for the quarter was a record $2 billion, an increase of 12% compared with the first quarter last year, primarily reflecting higher trading-related revenue and
underwriting fees.
Wholesale Banking continued to drive growth from the enhanced capabilities of the franchise. TD Cowen won the 2024 IFR U.S. Mid-Market Equity House Award, which
recognizes the leading underwriter of U.S. equity offerings between US$50-US$500 million. Following the quarter end, TD Cowen also acted as a lead bookrunner on the
marquee US$15 billion secondary offering of Schwab shares by TD, an important milestone.
Capital
TD’s Common Equity Tier 1 Capital ratio was 13.1%.
Conclusion
“TD’s strength and stability, combined with our unrelenting focus on meeting the needs of our customers and clients, will serve the Bank well in this period of geopolitical and
macroeconomic uncertainty, ” added Chun. “I want to thank our colleagues across the globe for their tremendous efforts and commitment. ”
The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 4.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
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ENHANCED DISCLOSURE TASK FORCE
The Enhanced Disclosure Task Force (EDTF) was established by the Financial Stability Board in 2012 to identify fundamental disclosure principles,
recommendations and leading practices to enhance risk disclosures of banks. The index below includes the recommendations (as published by the EDTF) and
lists the location of the related EDTF disclosures presented in the first quarter 2025 Report to Shareholders (RTS), Supplemental Financial Information (SFI), or
Supplemental Regulatory Disclosures (SRD). Information on TD’s website, SFI, and SRD is not and should not be considered incorporated herein by reference
into the first quarter 2025 RTS, Management’s Discussion and Analysis, or the Interim Consolidated Financial Statements. Certain disclosure references have
been made to the Bank’s 2024 Annual Report.
Type of
Risk
Topic
EDTF Disclosure
Page
RTS
First
Quarter
2025
SFI
First
Quarter
2025
SRD
First
Quarter
2025
Annual Report
2024
General
1
Present all related risk information together in any particular report.
Refer to below for location of disclosures
2
The bank’s risk terminology and risk measures and present key parameter
values used.
94-101, 105,
110, 112-114,
125-127
3
Describe and discuss top and emerging risks.
84-93
4
Outline plans to meet each new key regulatory ratio once applicable rules
are finalized.
30-31, 44
80, 122
Risk
Governance
and Risk
Management
and
Business
Model
5
Summarize the bank’s risk management organization, processes, and key
functions.
95-99
6
Description of the bank’s risk culture and procedures applied to support the
culture.
94-95
7
Description of key risks that arise from the bank’s business models and
activities.
79, 94, 100-128
8
Description of stress testing within the bank’s risk governance and capital
frameworks.
78, 99-100, 108,
125
Capital
Adequacy
and Risk
Weighted
Assets
9
Pillar 1 capital requirements and the impact for global systemically important
banks.
28-30, 75
1-3, 6
75-77, 80-81,
235
10
Composition of capital and reconciliation of accounting balance sheet to the
regulatory balance sheet.
1-3, 5
75
11
Flow statement of the movements in regulatory capital.
4
12
Discussion of capital planning within a more general discussion of
management’s strategic planning.
76-78, 125
13
Analysis of how risk-weighted asset (RWA) relate to business activities and
related risks.
9-13
78-79
14
Analysis of capital requirements for each method used for calculating RWA.
13
101-103, 105,
107-108
15
Tabulate credit risk in the banking book for Basel asset classes and major
portfolios.
36-53, 59-65
16
Flow statement reconciling the movements of RWA by risk type.
18-19
17
Discussion of Basel III back-testing requirements.
80
104, 108,
112-113
Liquidity
18
The bank’s management of liquidity needs and liquidity reserves.
37-41
114-116,
118-119
Funding
19
Encumbered and unencumbered assets in a table by balance sheet
category.
39
117, 229
20
Tabulate consolidated total assets, liabilities and off-balance sheet
commitments by remaining contractual maturity at the balance sheet date.
44-46
122-124
21
Discussion of the bank’s funding sources and the bank’s funding strategy.
40-44
119-122
Market Risk
22
Linkage of market risk measures for trading and non-trading portfolio and
balance sheet.
34
106
23
Breakdown of significant trading and non-trading market risk factors.
34, 36
106, 109-110
24
Significant market risk measurement model limitations and validation
procedures.
35
107-110,
112-113
25
Primary risk management techniques beyond reported risk measures and
parameters.
35
107-110
Credit Risk
26
Provide information that facilitates users’ understanding of the bank’s credit
risk profile, including any significant credit risk concentrations.
25-28, 61-67
21-36
1-5, 13, 18,
20-70, 72-80
62-74, 101-105,
185-192, 201,
203-204,
233-234
27
Description of the bank’s policies for identifying impaired loans.
66
71, 162-163,
169-170, 191
28
Reconciliation of the opening and closing balances of impaired loans in the
period and the allowance for loan losses.
26, 63-65
25, 29
69, 188-190
29
Analysis of the bank’s counterparty credit risks that arise from derivative
transactions.
54-55, 66-70
103, 173-174,
195-197, 201,
203-204
30
Discussion of credit risk mitigation, including collateral held for all sources of
credit risk.
104, 166,
173-174
Other Risks
31
Description of ‘other risk’ types based on management’s classifications and
discuss how each one is identified, governed, measured, and managed.
110-113,
125-128
32
Discuss publicly known risk events related to other risks.
73-74
91-93, 227-228
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
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TABLE OF CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
4
Caution Regarding Forward-Looking Statements
47
Securitization and Off-Balance Sheet Arrangements
5
Financial Highlights
47
Accounting Policies and Estimates
6
Significant and Subsequent Events
47
Changes in Internal Control over Financial Reporting
6
Update on U.S. BSA/AML Program Remediation and
48
Glossary
8
How We Performed
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
12
Financial Results Overview
51
Interim Consolidated Balance Sheet
15
How Our Businesses Performed
52
Interim Consolidated Statement of Income
23
Quarterly Results
53
Interim Consolidated Statement of Comprehensive Income
24
Balance Sheet Review
54
Interim Consolidated Statement of Changes in Equity
25
Credit Portfolio Quality
55
Interim Consolidated Statement of Cash Flows
28
Capital Position
56
Notes to Interim Consolidated Financial Statements
32
Risk Factors and Management
32
Managing Risk
76
SHAREHOLDER AND INVESTOR INFORMATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING PERFORMANCE
This MD&A is presented to enable readers to assess material changes in the financial condition and operating results of TD Bank Group (“TD” or the “Bank”) for
the three months ended January 31, 2025, compared with the corresponding periods shown. This MD&A should be read in conjunction with the Bank’s unaudited
Interim Consolidated Financial Statements and related Notes included in this Report to Shareholders and with the 2024 Consolidated Financial Statements and
related Notes and 2024 MD&A. This MD&A is dated February 26, 2025. Unless otherwise indicated, all amounts are expressed in Canadian dollars and have been
primarily derived from the Bank’s 2024 Consolidated Financial Statements and related Notes or Interim Consolidated Financial Statements and related Notes,
prepared in accordance with IFRS as issued by the IASB. Note that certain comparative amounts have been revised to conform with the presentation adopted in
the current period. Additional information relating to the Bank, including the Bank’s 2024 Annual Information Form, is available on the Bank’s website at
http://www.td.com as well as on SEDAR+ at http://www.sedarplus.ca and on the SEC’s website at http://www.sec.gov (EDGAR filers section).
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 in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made
pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis (“2024 MD&A”) in the Bank’s 2024 Annual Report under the heading “Economic
Summary and Outlook”, under the headings “Key Priorities for 2025” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and
Wholesale Banking segments, and under the heading “2024 Accomplishments and Focus for 2025” for the Corporate segment, and in other statements regarding the Bank’s objectives and priorities for 2025 and beyond
and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank’s anticipated financial performance.
Forward-looking statements are typically identified by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “outlook”, “plan”, “goal”, “target”, “possible”, “potential”, “predict”,
“project”, “may”, and “could” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-looking
statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and
regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations
expressed in the forward-looking statements.
Risk factors that could cause, individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including
technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, legal and regulatory compliance (including financial crime),
reputational, environmental and social, and other risks.
Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates (including the economic, financial, and other impacts of pandemics); geopolitical risk (including the
potential impact of new or elevated tariffs); inflation, interest rates and recession uncertainty; regulatory oversight and compliance risk; risks associated with the Bank’s ability to satisfy the terms of the global resolution of
the investigations into the Bank’s U.S.
Bank Secrecy Act
businesses, operations, financial condition, and reputation; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions
and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; technology and cyber security risk
(including cyber-attacks, data security breaches or technology failures) on the Bank’s technologies, systems and networks, those of the Bank’s customers (including their own devices), and third parties providing services to
the Bank; data risk; model risk; fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information, and other
risks arising from the Bank’s use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including without limitation consumer protection laws and regulations, tax laws,
capital guidelines and liquidity regulatory guidance; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology;
environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes in foreign exchange rates, interest
rates, credit spreads and equity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency, the value and market price of the Bank’s common shares and other securities may be impacted by
market conditions and other factors; the interconnectivity of financial institutions including existing and potential international debt crises; increased funding costs and market volatility due to market illiquidity and competition
for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and claims resulting from such
events.
The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more detailed information, please refer to the “Risk Factors and
Management” section of the 2024 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings
“Significant Events”, “Significant and Subsequent Events” or “Update on U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program Remediation and Enterprise AML Program Improvement Activities“ in the
relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be
considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank’s forward-looking statements.
Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2024 MD&A under the headings “Economic Summary and Outlook” and “Significant Events”, under
the headings “Key Priorities for 2025” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments,
and under the heading “2024 Accomplishments and Focus for 2025” for the Corporate segment, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable).
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s shareholders and analysts in
understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank
does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.
This document was reviewed by the Bank’s Audit Committee and was approved by the Bank’s Board of Directors, on the Audit Committee’s recommendation, prior to its release.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 5
TABLE 1: FINANCIAL HIGHLIGHTS
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Results of operations
Total revenue – reported
$
14,049
$
15,514
$
13,714
Total revenue – adjusted
1
15,030
14,897
13,771
Provision for (recovery of) credit losses
1,212
1,109
1,001
Insurance service expenses (ISE)
1,507
2,364
1,366
Non-interest expenses – reported
8,070
8,050
8,030
Non-interest expenses – adjusted
1
7,983
7,731
7,125
Net income (loss) – reported
2,793
3,635
2,824
Net income – adjusted
1
3,623
3,205
3,637
Financial position
(billions of Canadian dollars)
Total loans net of allowance for loan losses
$
965.3
$
949.5
$
904.3
Total assets
2,093.6
2,061.8
1,910.9
Total deposits
1,290.5
1,268.7
1,181.3
Total equity
119.0
115.2
112.4
Total risk-weighted assets
2
649.0
630.9
579.4
Financial ratios
Return on common equity (ROE) – reported
3
10.1
%
13.4
%
10.9
%
Return on common equity – adjusted
1
13.2
11.7
14.1
Return on tangible common equity (ROTCE)
1,3
13.4
17.8
14.9
Return on tangible common equity – adjusted
1
17.2
15.4
18.7
Efficiency ratio – reported
3
57.4
51.9
58.6
Efficiency ratio – adjusted, net of ISE
1,3,4
59.0
61.7
57.4
Provision for (recovery of) credit losses as a % of net
average loans and acceptances
0.50
0.47
0.44
Common share information – reported
(Canadian dollars)
Per share earnings (loss)
Basic
$
1.55
$
1.97
$
1.55
Diluted
1.55
1.97
1.55
Dividends per share
1.05
1.02
1.02
Book value per share
3
61.61
59.59
57.34
Closing share price
5
82.91
76.97
81.67
Shares outstanding (millions)
Average basic
1,749.9
1,748.2
1,776.7
Average diluted
1,750.7
1,749.3
1,778.2
End of period
1,751.7
1,750.1
1,772.1
Market capitalization (billions of Canadian dollars)
$
145.2
$
134.7
$
144.7
Dividend yield
3
5.4
%
5.0
%
4.9
%
Dividend payout ratio
3
67.8
51.8
65.7
Price-earnings ratio
3
17.5
16.3
13.1
Total shareholder return (1 year)
3
6.9
4.5
(6.9)
Common share information – adjusted
(Canadian dollars)
Per share earnings
Basic
$
2.02
$
1.72
$
2.01
Diluted
2.02
1.72
2.00
Dividend payout ratio
51.9
%
59.2
%
50.7
%
Price-earnings ratio
10.6
9.9
10.6
Capital ratios
3
Common Equity Tier 1 Capital ratio
13.1
%
13.1
%
13.9
%
Tier 1 Capital ratio
14.7
14.8
15.7
Total Capital ratio
17.0
16.8
17.6
Leverage ratio
4.2
4.2
4.4
TLAC ratio
29.5
28.7
30.8
TLAC Leverage ratio
8.5
8.1
8.6
1
accordance with IFRS as the “reported” results. The Bank also utilizes non-GAAP financial measures such as “adjusted” results and non-GAAP ratios to assess each of its businesses
and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for “items of note”. Refer to “Significant and Subsequent Events” and “How We
Performed” sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used
in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
2
(CAR), Leverage Requirements (LR), and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the “Capital Position” section of this document for further details.
3
4
Q1 2025: $13,523 million, Q4 2024: $12,533 million, Q1 2024: $12,405 million.
5
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 6
SIGNIFICANT AND SUBSEQUENT EVENTS
Sale of Schwab Common Shares
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab.
Immediately prior to the sale, TD held 184.7 million shares of Schwab’s common stock, representing 10.1% economic ownership. The sale of the shares resulted
in proceeds of approximately $21.0 billion (US$14.6 billion). In the second quarter of fiscal 2025, the Bank is expected to recognize a net gain on sale of its
investment in Schwab of approximately $8.6 billion (US$5.8 billion). This gain is net of the release of related cumulative foreign currency translation from AOCI, the
release of AOCI on designated net investment hedging items, direct transaction costs, and taxes. The Bank will also recognize $0.2 billion of underwriting fees in
its Wholesale segment as a result of TD Securities acting as a lead bookrunner on the transaction.
The transaction is expected to increase Common Equity Tier 1 (CET1) capital by approximately 238 bps, based on the Bank’s CET1 capital as at
January 31, 2025. Additionally, assuming the $8.0 billion planned share repurchases pursuant to the Bank’s proposed normal course issuer bid were completed as
of January 31, 2025, the Bank’s pro forma CET1 capital as at January 31, 2025 would be approximately 14.2%. The Bank continues to have a business
relationship with Schwab through the IDA Agreement. The Bank will discontinue recording its share of earnings available to common shareholders from its
investment in Schwab in the second quarter of fiscal 2025.
UPDATE ON U.S. BANK SECRECY ACT (BSA)/ANTI-MONEY LAUNDERING (AML ) PROGRAM REMEDIATION AND
ENTERPRISE AML PROGRAM IMPROVEMENT ACTIVITIES
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 compliance programs (the “Global Resolution”). The Bank
and certain of its U.S. subsidiaries consented to orders with the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Financial
Crimes Enforcement Network (FinCEN) and entered into plea agreements with the Department of Justice (DOJ), Criminal Division, Money Laundering and Asset
Recovery Section and the United States Attorney’s Office for the District of New Jersey. The Bank is focused on meeting the terms of the consent orders and plea
agreements, including meeting its requirements to remediate the Bank’s U.S. BSA/AML programs. In addition, the Bank is also undertaking several improvements
to the Bank’s enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs (“Enterprise AML Program”).
For additional information on the Global Resolution, the Bank’s U.S. BSA/AML program remediation activities, the Bank’s Enterprise AML Program improvement
activities, and the risks associated with the foregoing, see the “Significant Events – Global Resolution of the Investigations into the Bankְ’s U.S. BSA/AML Program”
and “Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank’s U.S. BSA/AML Program” sections of the Bank’s
2024 MD&A.
Remediation of the U.S. BSA/AML Program
The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. The Bank continues to expect to have
the majority of its management remediation actions implemented in calendar 2025 and continues to expect U.S. BSA/AML remediation and related governance
and control investments of approximately US$500 million pre-tax in fiscal 2025
2
. Remaining management implementations are planned for calendar 2026 and into
calendar 2027. Sustainability and testing activities are planned for calendar 2026 and calendar 2027 following management implementations, and the Bank is
targeting to have the Suspicious Activity Report lookback to be completed in calendar 2027 per the OCC consent order. As noted in the Bank’s 2024 MD&A, all
management remediation actions will be subject to validation by the Bank’s internal audit function, followed by the review and acceptance by the appointed
monitor, demonstrated sustainability, and, ultimately, the review and approval of the Bank’s U.S. banking regulators and the DOJ. The following graph illustrates
the Bank’s expected remediation plan and progress on a calendar year basis, based on its work to date:
As noted in the Bank’s 2024 MD&A including in the “Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank’s U.S.
BSA/AML Program” section thereof, the Bank’s remediation timeline is based on the Bank’s current plans, as well as assumptions related to the duration of
planning activities, including the completion of external benchmarking and lookback reviews. As an example, as the Bank undertakes the lookback reviews, the
Bank may be required to further expand the scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The Bank’s
ability to meet its planned remediation milestones assumes that the Bank will be able to successfully execute against its U.S. BSA/AML remediation program plan,
which is subject to inherent risks and uncertainties including the Bank’s ability to attract and retain key employees, the ability of third parties to deliver on their
contractual obligations, and the successful development and implementation of required technology solutions. Furthermore, the execution of the U.S. BSA/AML
remediation plan, including these planned milestones, will not be entirely within the Bank’s control because of various factors such as (i) the requirement to obtain
regulatory approval or non-objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators
and/or the monitor.
While substantial work remains, the Bank has made progress on its U.S. BSA/AML program remediation activities over the first fiscal quarter of 2025, including:
2
BSA/AML remediation plan which could change as a result of additional findings that are identified as work progresses as well as the Bank’s ability to successfully execute against the
U.S. BSA/AML remediation program in accordance with the U.S. Retail segment’s fiscal 2025 plan.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 7
1)
Compliance Monitor on a go-forward basis;
2)
single system to provide unified data sets to help manage financial crime risk with a single view of the customer;
3)
4)
interest;
5)
6)
understood throughout the organization.
For the second and third fiscal quarters of 2025, the Bank’s focus will be on the following remediation activities:
1)
to be implemented;
2)
scenarios into the Bank’s transaction monitoring system;
3)
4)
As noted in the Bank’s 2024 MD&A, to help ensure that the Bank can continue to support its customers’ financial needs in the U.S. while not exceeding the
limitation on the combined total assets of the U.S. Bank, the Bank is focused on executing multiple U.S. balance sheet restructuring actions in fiscal 2025. Refer to
the “Update on U.S. Balance Sheet Restructuring” section of the U.S. Retail segment section for additional information on these actions. For additional information
about expenses associated with the Bank’s U.S. BSA/AML program remediation activities, refer to the U.S. Retail segment section.
Assessment and Strengthening of the Bank’s Enterprise AML Program
The Bank is continuing to implement improvements to the Enterprise AML Program and continues to target implementation of the majority of its Enterprise AML
Program remediation and enhancement actions by the end of calendar 2025. As noted in the Bank’s 2024 MD&A, once implemented, those remediation and
enhancement actions will then be subject to internal review, challenge and validation of the activities. Following the end of the first fiscal quarter, the Financial
Transactions and Reports Analysis Centre of Canada (“FINTRAC”) commenced a review of certain remediation steps that the Bank has taken to date to address
the FINTRAC violations. This review is ongoing, and subject to the outcome, may result in additional regulatory actions.
As noted in the “Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank’s U.S. BSA/AML Program” section of the
Bank’s 2024 MD&A, the remediation and enhancement of the Enterprise AML program is exposed to similar risks as noted in respect of the remediation of the
Bank’s U.S. BSA/AML program. In particular, as the Bank makes remediation and enhancements to the Enterprise AML Program, it expects an increase in
identification of reportable transactions and/or events, which will add to the operational backlog in the Bank’s Financial Crime Risk Management (FCRM)
investigations processing that the Bank currently faces, but is working towards remediating, across the enterprise. In addition, as the Bank continues its
remediation and improvement activities of the Enterprise AML Program, it continues to assess (i) whether issues that have been, and continue to be, identified in
the U.S. BSA/AML program exist in the Enterprise AML Program in Canada, Europe or Asia, and (ii) the impact of such issues. The results of these assessments
may also broaden the scope of the remediation and improvements required for the Enterprise AML Program. Furthermore, the Bank’s regulators or law
enforcement agencies may identify other issues with the Bank’s Enterprise AML Program, which may result in additional regulatory actions.
While substantial work remains, the Bank has made progress on the improvements to the Enterprise AML Program over the first fiscal quarter of 2025, including:
1) the consolidation of the Enterprise and the U.S. AML mandates under the leadership of the Global Head of FCRM, in order to better enable strong
and consistent engagement, and delivery of improvements across both the U.S. and Enterprise AML programs;
2) additional improvements in the Bank’s process and procedural guidance, including additional targeted training across FCRM and individual business
lines; and
3)
For the second and third fiscal quarters of 2025, the Bank’s focus will be on the following improvements to the Enterprise AML Program:
1) the implementation of a new centralized case management tool that is already in production in the U.S. through the rest of the Bank, with the goal of
strengthening oversight and investigations of identified FCRM risks;
2) the implementation of technology initiatives to consolidate electronic document and data availability to help improve timeliness of monitoring and
oversight of escalated AML issues; and
3) the continued rollout of an enhanced risk assessment methodology and tools to strengthen identification and measurement of FCRM risks across
clients, products, and transactions, supported by improved data capabilities.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 8
HOW WE PERFORMED
CORPORATE OVERVIEW
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by
assets and serves more than 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian
Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America’s Most Convenient Bank
®
,
TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and
Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world’s leading online financial services firms, with more than 17 million
active online and mobile customers. TD had $2.09 trillion in assets on January 31, 2025. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto
Stock Exchange and New York Stock Exchange.
HOW THE BANK REPORTS
The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with
IFRS as “reported” results.
Non-GAAP and Other Financial Measures
In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios,
supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as “adjusted” results, are utilized
to assess the Bank’s businesses and to measure the Bank’s overall performance.
To
arrive at adjusted results, the Bank adjusts for “items of note” from reported
results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP
ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted basic and diluted earnings per
share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank believes that non-GAAP
financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank’s performance. Non-GAAP financial
measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other
issuers. Supplementary financial measures depict the Bank’s financial performance and position, and capital management measures depict the Bank’s capital
position, and both are explained in this document where they first appear.
U.S. Strategic Cards
The Bank’s U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-
branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by
the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank’s
Interim Consolidated Statement of Income. At the segment level, the retailer program partners’ share of revenues and credit losses is presented in the Corporate
segment, with an offsetting amount (representing the partners’ net share) recorded in Non-interest expenses, resulting in no impact to Corporate’s reported net
income (loss). The net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the
agreements.
Investment in The Charles Schwab Corporation and IDA Agreement
As at January 31, 2025, the Bank accounted for its investment in Schwab using the equity method. The U.S. Retail segment reflected the Bank’s share of net
income from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and
integration charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab. The Bank’s share of Schwab’s
earnings available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank’s 2024 Annual Consolidated
Financial Statements.
On August 21, 2024, the Bank sold 40.5 million shares of common stock of Schwab for proceeds of approximately $3.4 billion (US$2.5 billion). The share sale
reduced the Bank’s ownership interest in Schwab from 12.3% to 10.1%. The Bank recognized approximately $1.0 billion (US$0.7 billion) as other income (net of
$0.5 billion (US$0.4 billion) loss from AOCI reclassified to earnings), in the fourth quarter of fiscal 2024.
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. For
further details, refer to “Significant and Subsequent Events” section of this document. The Bank will discontinue recording its share of earnings available to
common shareholders from its investment in Schwab in the second quarter of fiscal 2025.
On November 25, 2019, the Bank and Schwab signed an insured deposit account agreement (the “2019 Schwab IDA Agreement”), with an initial expiration
date of July 1, 2031. Under the 2019 Schwab IDA Agreement, starting July 1, 2021, Schwab had the option to reduce the deposits by up to US$10 billion per year
(subject to certain limitations and adjustments), with a floor of US$50 billion. In addition, Schwab requested some further operational flexibility to allow for the
sweep deposit balances to fluctuate over time, under certain conditions and subject to certain limitations.
On May 4, 2023, the Bank and Schwab entered into an amended insured deposit account agreement (the “2023 Schwab IDA Agreement” or the “Schwab IDA
Agreement”), which replaced the 2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab IDA Agreement, the Bank continues to make sweep deposit
accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits
are designated as floating-rate obligations. In comparison to the 2019 Schwab IDA Agreement, the 2023 Schwab IDA Agreement extends the initial expiration date
by three years to July 1, 2034 and provides for lower deposit balances in its first six years, followed by higher balances in the later years. Specifically, until
September 2025, the aggregate FROA will serve as the floor. Thereafter, the floor will be set at US$60 billion. In addition, Schwab had the option to buy down up
to $6.8 billion (US$5 billion) of FROA by paying the Bank certain fees in accordance with the 2023 Schwab IDA Agreement, subject to certain limits.
During the first quarter of fiscal 2024, Schwab exercised its option to buy down the remaining $0.7 billion (US$0.5 billion) of the US$5 billion FROA buydown
allowance and paid $32 million (US$23 million) in termination fees to the Bank in accordance with the 2023 Schwab IDA Agreement. By the end of the first quarter
of fiscal 2024, Schwab had completed its buydown of the full US$5 billion FROA buydown allowance and had paid a total of $337 million (US$250 million) in
termination fees to the Bank. The fees were intended to compensate the Bank for losses incurred from discontinuing certain hedging relationships and for lost
revenues. The net impact was recorded in net interest income.
Subsequent to the sale of the Bank’s entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through
the IDA Agreement. Refer to Note 27 of the Bank’s 2024 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 9
The following table provides the operating results on a reported basis for the Bank.
TABLE 2: OPERATING RESULTS – Reported
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Net interest income
$
7,866
$
7,940
$
7,488
Non-interest income
6,183
7,574
6,226
Total revenue
14,049
15,514
13,714
Provision for (recovery of) credit losses
1,212
1,109
1,001
Insurance service expenses
1,507
2,364
1,366
Non-interest expenses
8,070
8,050
8,030
Income before income taxes and share of net income from
investment in Schwab
3,260
3,991
3,317
Provision for (recovery of) income taxes
698
534
634
Share of net income from investment in Schwab
231
178
141
Net income (loss) – reported
2,793
3,635
2,824
Preferred dividends and distributions on other equity instruments
86
193
74
Net income (loss) attributable to common shareholders
$
2,707
$
3,442
$
2,750
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 10
The following table provides a reconciliation between the Bank’s adjusted and reported results. For further details refer to the “Significant and Subsequent Events”
or “How We Performed” sections.
TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Operating results – adjusted
Net interest income
1,2
$
7,920
$
8,034
$
7,545
Non-interest income
3
7,110
6,863
6,226
Total revenue
15,030
14,897
13,771
Provision for (recovery of) credit losses
1,212
1,109
1,001
Insurance service expenses
1,507
2,364
1,366
Non-interest expenses
4
7,983
7,731
7,125
Income before income taxes and share of net income from
investment in Schwab
4,328
3,693
4,279
Provision for (recovery of) income taxes
962
695
872
Share of net income from investment in Schwab
5
257
207
230
Net income – adjusted
3,623
3,205
3,637
Preferred dividends and distributions on other equity instruments
86
193
74
Net income available to common shareholders – adjusted
3,537
3,012
3,563
Pre-tax adjustments for items of note
Amortization of acquired intangibles
6
(61)
(60)
(94)
Acquisition and integration charges related to the Schwab transaction
4,5
–
(35)
(32)
Share of restructuring and other charges from investment in Schwab
5
–
–
(49)
Restructuring charges
4
–
–
(291)
Acquisition and integration-related charges
4
(52)
(82)
(117)
Impact from the terminated FHN acquisition-related capital hedging strategy
1
(54)
(59)
(57)
Gain on sale of Schwab shares
3
–
1,022
–
U.S. balance sheet restructuring
3
(927)
(311)
–
Indirect tax matters
2,4
–
(226)
–
FDIC special assessment
4
–
72
(411)
Global resolution of the investigations into the Bank’s U.S. BSA/AML program
4
–
(52)
–
Less: Impact of income taxes
Amortization of acquired intangibles
(9)
(8)
(15)
Acquisition and integration charges related to the Schwab transaction
–
(9)
(6)
Restructuring charges
–
–
(78)
Acquisition and integration-related charges
(11)
(18)
(24)
Impact from the terminated FHN acquisition-related capital hedging strategy
(13)
(14)
(14)
U.S. balance sheet restructuring
(231)
(77)
–
Indirect tax matters
–
(53)
–
FDIC special assessment
–
18
(101)
Total adjustments for items of note
(830)
430
(813)
Net income (loss) available to common shareholders – reported
$
2,707
$
3,442
$
2,750
1
After the termination of the merger agreement between the Bank and FHN on May 4, 2023, the residual impact of the strategy is reversed through net interest income – Q1 2025: ($54) million, Q4 2024: ($59) million,
Q1 2024: ($57) million, reported in the Corporate segment.
2
i.
Indirect tax matters – Q4 2024: $35 million, reported in the Corporate segment.
3
i.
ii.
U.S. balance sheet restructuring – Q1 2025: $927 million, Q4 2024: $311 million, reported in the U.S. Retail segment.
4
Adjusted non-interest expenses exclude the following items of note:
i.
ii.
iii.
iv.
v.
vi.
vii.
5
Adjusted Share of net income from investment in Schwab excludes the following items of note on an after-tax basis. The earnings impact of these items is reported in the Corporate segment:
i.
ii.
iii.
iv.
The Bank’s share of the FDIC special assessment charge incurred by Schwab – Q1 2024: $22 million.
6
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
of net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 4 and 5 for amounts.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 11
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE
1
(Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Basic earnings (loss) per share – reported
$
1.55
$
1.97
$
1.55
Adjustments for items of note
0.47
(0.25)
0.45
Basic earnings per share – adjusted
$
2.02
$
1.72
$
2.01
Diluted earnings (loss) per share – reported
$
1.55
$
1.97
$
1.55
Adjustments for items of note
0.47
(0.25)
0.45
Diluted earnings per share – adjusted
$
2.02
$
1.72
$
2.00
1
rounding.
TABLE 5: AMORTIZATION OF INTANGIBLES, NET OF INCOME TAXES
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Schwab
1
$
26
$
27
$
31
Wholesale Banking related intangibles
21
19
42
Other
5
6
6
Included as items of note
52
52
79
Software and asset servicing rights
119
117
96
Amortization of intangibles, net of income taxes
$
171
$
169
$
175
1
Return on Common Equity
The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The
consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted
ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank’s use of equity.
ROE for the business segments is calculated as the segment net income attributable to common shareholders as a percentage of average allocated capital. The
Bank’s methodology for allocating capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated
to the business segments was 11.5% Common Equity Tier 1 (CET1) Capital effective fiscal 2024.
TABLE 6: RETURN ON COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Average common equity
$
106,133
$
102,051
$
100,269
Net income (loss) attributable to common shareholders – reported
2,707
3,442
2,750
Items of note, net of income taxes
830
(430)
813
Net income available to common shareholders – adjusted
$
3,537
$
3,012
$
3,563
Return on common equity – reported
10.1
%
13.4
%
10.9
%
Return on common equity – adjusted
13.2
11.7
14.1
Return on Tangible Common Equity
Tangible common equity (TCE) is calculated as common shareholders’ equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and
other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after
adjusting for the after-tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is
calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and
adjusted ROTCE can be utilized in assessing the Bank’s use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP
ratios.
TABLE 7: RETURN ON TANGIBLE COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Average common equity
$
106,133
$
102,051
$
100,269
Average goodwill
19,205
18,568
18,208
Average imputed goodwill and intangibles on investments in Schwab
5,116
5,328
6,056
Average other acquired intangibles
1
482
508
615
Average related deferred tax liabilities
(237)
(230)
(231)
Average tangible common equity
81,567
77,877
75,621
Net income (loss) attributable to common shareholders – reported
2,707
3,442
2,750
Amortization of acquired intangibles, net of income taxes
52
52
79
Net income (loss) attributable to common shareholders adjusted for
amortization of acquired intangibles, net of income taxes
2,759
3,494
2,829
Other items of note, net of income taxes
778
(482)
734
Net income available to common shareholders – adjusted
$
3,537
$
3,012
$
3,563
Return on tangible common equity
13.4
%
17.8
%
14.9
%
Return on tangible common equity – adjusted
17.2
15.4
18.7
1
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 12
IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED EARNINGS
The following table reflects the estimated impact of foreign currency translation on key U.S. Retail segment income statement items. The impact is calculated as
the difference in translated earnings using the average U.S. to Canadian dollars exchange rates in the periods noted.
TABLE 8: IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED EARNINGS
(millions of Canadian dollars, except as noted)
For the three months ended
January 31, 2025 vs.
January 31, 2024
Increase (Decrease)
U.S. Retail Bank
Total revenue – reported
$
133
Total revenue – adjusted
1
178
Non-interest expenses – reported
114
Non-interest expenses – adjusted
1
114
Net income (loss) – reported, after tax
7
Net income – adjusted, after tax
1
40
Share of net income from investment in Schwab
2
6
U.S. Retail segment net income (loss) – reported, after tax
13
U.S. Retail segment net income – adjusted, after tax
1
46
Earnings (loss) per share
(Canadian dollars)
Basic – reported
$
0.01
Basic – adjusted
1
0.03
Diluted – reported
0.01
Diluted – adjusted
1
0.03
Average foreign exchange rate (equivalent of CAD $1.00)
For the three months ended
January 31
January 31
2025
2024
U.S. dollar
$
0.704
$
0.739
1
document.
2
FINANCIAL RESULTS OVERVIEW
Performance Summary
Outlined below is an overview of the Bank’s performance for the first quarter of 2025. Shareholder performance indicators help guide and benchmark the Bank’s
accomplishments. For the purposes of this analysis, the Bank utilizes adjusted earnings, which excludes items of note from the reported results that are prepared
in accordance with IFRS. Reported and adjusted results and items of note are explained in “Non-GAAP and Other Financial Measures” in the “How We Performed”
section of this document.
●
●
●
3
average of 35.8%.
Net Income
Quarterly comparison – Q1 2025 vs. Q1 2024
Reported net income for the quarter was $2,793 million, a decrease of $31 million, or 1%, compared with the first quarter last year, primarily reflecting the impact of
balance sheet restructuring activities in the current quarter in U.S. Retail, higher non-interest expenses, including higher governance and control investments,
including costs for U.S. BSA/AML remediation, and higher PCL, partially offset by higher revenues, and the impact of the FDIC special assessment charge
n U.S.
Retail and restructuring charges in the first quarter last year. On an adjusted basis, net income for the quarter was $3,623 million, relatively flat compared with the
first quarter last year.
By segment, the decrease in reported net income reflects a decrease in U.S. Retail of $528 million, partially offset by increases in the Corporate segment of
$232 million, in Wealth Management and Insurance of $125 million, in Wholesale Banking of $94 million, and in Canadian Personal and Commercial Banking of
$46 million.
Quarterly comparison – Q1 2025 vs. Q4 2024
Reported net income for the quarter decreased $842 million, or 23%, compared with the prior quarter, primarily reflecting the prior quarter gain on sale of Schwab
shares in the Corporate segment, the impact of balance sheet restructuring activities in the current quarter in U.S. Retail, and higher non-interest expenses,
partially offset by lower insurance service expenses, and the prior quarter provision for indirect tax matters in the Corporate segment. Adjusted net income for the
quarter increased $418 million, or 13%.
By segment, the decrease in reported net income reflects decreases in the Corporate segment of $885 million and in U.S. Retail of $360 million, partially offset
by increases in Wealth Management and Insurance of $331 million, in Wholesale Banking of $64 million, and in Canadian Personal and Commercial Banking of
$8 million.
Net Interest Income
Quarterly comparison – Q1 2025 vs. Q1 2024
Reported net interest income for the quarter was $7,866 million, an increase of $378 million, or 5%, compared with the first quarter last year, primarily reflecting
volume growth in Canadian Personal and Commercial Banking, the impact of foreign exchange translation, higher deposit margins and the impact of balance
sheet restructuring activities in U.S. Retail, and higher revenue from treasury and balance sheet activities, partially offset by lower net interest income in Wholesale
Banking. On an adjusted basis, net interest income was $7,920 million, an increase of $375 million, or 5%.
3
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 13
By segment, the increase in reported net interest income reflects increases in Canadian Personal and Commercial Banking of $302 million, in U.S. Retail of
$165 million, in the Corporate segment of $132 million, and in Wealth Management and Insurance of $84 million, partially offset by a decrease in Wholesale
Banking of $305 million.
Quarterly comparison – Q1 2025 vs. Q4 2024
Reported net interest income for the quarter decreased $74 million, or 1%, compared with the prior quarter, primarily reflecting lower net interest income in
Wholesale Banking, partially offset by the impact of foreign exchange translation, volume growth and higher margins in Canadian Personal and Commercial
Banking, and the impact of balance sheet restructuring activities in U.S. Retail. On an adjusted basis, net interest income decreased $114 million, or 1%.
By segment, the decrease in reported net interest income reflects decreases in Wholesale Banking of $328 million and in the Corporate segment of $11 million,
partially offset by increases in U.S. Retail of $140 million, in Canadian Personal and Commercial Banking of $77 million, and in Wealth Management and
Insurance of $48 million.
Non-Interest Income
Quarterly comparison – Q1 2025 vs. Q1 2024
Reported non-interest income for the quarter was $6,183 million, a decrease of $43 million, or 1%, compared with the first quarter last year, primarily reflecting the
impact of balance sheet restructuring activities in U.S. Retail, partially offset by higher trading-related revenue and underwriting fees in Wholesale Banking, and
higher insurance premiums, fee-based revenue, and transaction revenue in Wealth Management and Insurance. On an adjusted basis, non-interest income was
$7,110 million, an increase of $884 million, or 14%.
By segment, the decrease in reported non-interest income reflects decreases in U.S. Retail of $886 million, in Canadian Personal and Commercial Banking of
$37 million, and in the Corporate segment of $24 million, partially offset by increases in Wholesale Banking of $525 million and in Wealth Management and
Insurance of $379 million.
Quarterly comparison – Q1 2025 vs. Q4 2024
Non-interest income for the quarter decreased $1,391 million, or 18%, compared with the prior quarter, primarily reflecting the impact of the prior quarter gain on
sale of Schwab shares in the Corporate segment, reinsurance recoveries for catastrophe claims in the prior quarter in Wealth Management and Insurance, and the
impact of balance sheet restructuring activities in the current quarter in U.S. Retail, partially offset by higher trading-related revenue in Wholesale Banking, and
higher fee-based revenue, transaction revenue and insurance premiums in Wealth Management and Insurance. On an adjusted basis, non-interest income
increased $247 million, or 4%.
By segment, the decrease in non-interest income reflects decreases in the Corporate segment of $1,000 million, in U.S. Retail of $569 million, and in Wealth
Management and Insurance of $387 million, partially offset by increases in Wholesale Banking of $557 million and in Canadian Personal and Commercial Banking
of $8 million.
Provision for Credit Losses
Quarterly comparison – Q1 2025 vs. Q1 2024
PCL for the quarter was $1,212 million, an increase of $211 million compared with the first quarter last year. PCL – impaired was $1,216 million, an increase of
$282 million, or 30%, reflecting credit migration in the Business and Government and Canadian consumer lending portfolios and the adoption impact of a model
update in the U.S. Cards portfolio. PCL – performing was a recovery of $4 million, compared with a build of $67 million in the prior year. The performing recovery
this quarter reflects the adoption impact of a model update in the U.S. Cards portfolio, and an update to the economic forecast, largely offset by a build in the
Business and Government lending portfolios related to policy and trade uncertainty that could impact the economic trajectory and credit performance. Total PCL
for the quarter as an annualized percentage of credit volume was 0.50%.
By segment, PCL was higher by $98 million in Canadian Personal and Commercial Banking, by $66 million in U.S. Retail, by $62 million in Wholesale Banking,
and lower by $15 million in the Corporate segment.
Quarterly comparison – Q1 2025 vs. Q4 2024
PCL for the quarter was $1,212 million, an increase of $103 million compared with the prior quarter. PCL – impaired was $1,216 million, an increase of $63 million,
or 5%, largely recorded in the U.S. Cards portfolio reflecting the adoption impact of a model update and seasonal trends, partially offset by lower provisions in the
Wholesale and Canadian commercial lending portfolios. PCL – performing was a recovery of $4 million, compared with a recovery of $44 million in the prior
quarter. The performing recovery this quarter reflects the adoption impact of a model update in the U.S. Cards portfolio, and an update to the economic forecast,
largely offset by a build in the Business and Government lending portfolios related to policy and trade uncertainty that could impact the economic trajectory and
credit performance.
Total PCL for the quarter as an annualized percentage of credit volume was 0.50%.
By segment, PCL was higher by $91 million in Canadian Personal and Commercial Banking, by $62 million in U.S. Retail, by $12 million in the Corporate
segment, and lower by $62 million in Wholesale Banking.
While results may vary by quarter, there are many potential scenarios that may impact the economic trajectory and credit performance, some of which could
drive PCL results beyond the high end of the Bank’s previously disclosed estimated PCL range of 45 to 55 basis points for fiscal 2025
4
.
4
and performance, such as the level of unemployment, interest rates, economic growth or contraction, and borrower or industry specific credit factors and conditions, inclusive of policy
and trade uncertainty. The Bank’s PCL estimate is subject to risks and uncertainties including those set out in the “Risk Factors That May Affect Future Results” section of this document.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 14
TABLE 9: PROVISION FOR CREDIT LOSSES
1
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Provision for (recovery of) credit losses – Stage 3 (impaired)
Canadian Personal and Commercial Banking
$
459
$
456
$
364
U.S. Retail
529
418
377
Wealth Management and Insurance
–
–
–
Wholesale Banking
33
134
5
Corporate
2
195
145
188
Total provision for (recovery of) credit losses – Stage 3
1,216
1,153
934
Provision for (recovery of) credit losses – Stage 1 and Stage 2 (performing)
Canadian Personal and Commercial Banking
62
(26)
59
U.S. Retail
(78)
(29)
8
Wealth Management and Insurance
–
–
–
Wholesale Banking
39
–
5
Corporate
2
(27)
11
(5)
Total provision for (recovery of) credit losses – Stage 1 and Stage 2
(4)
(44)
67
Total provision for (recovery of) credit losses
$
1,212
$
1,109
$
1,001
1
2
Insurance Service Expenses
Quarterly comparison – Q1 2025 vs. Q1 2024
Insurance service expenses for the quarter were $1,507 million, an increase of $141 million, or 10%, compared with the first quarter last year, primarily reflecting
increased claims severity.
Quarterly comparison – Q1 2025 vs. Q4 2024
Insurance service expenses for the quarter decreased $857 million, or 36%, compared with the prior quarter, primarily the result of estimated losses from
catastrophe claims of $1,020 million in the prior quarter
,
partially offset by increased claims severity.
Non-Interest Expenses and Efficiency Ratio
Quarterly comparison – Q1 2025 vs. Q1 2024
Reported non-interest expenses were $8,070 million, relatively flat compared with the first quarter last year, primarily reflecting higher governance and control
investments in the U.S. Retail and Corporate segments, including costs for U.S. BSA/AML remediation, higher employee-related expenses, including higher
variable compensation commensurate with higher revenues and the impact of the compensation initiative whereby the Bank’s eligible non-executive employees
received share compensation (the “TD Share Compensation Initiative”), the impact of foreign exchange translation, and higher technology investment supporting
business growth, offset by the impact of the FDIC special assessment charge in U.S. Retail and restructuring charges in the first quarter last year. On an adjusted
basis, non-interest expenses were $7,983 million, an increase of $858 million, or 12%. As previously noted in the Bank’s 2024 MD&A, as a result of the Bank’s
investments in governance and control and investments supporting business growth, including employee-related expenses, net of expected productivity and
restructuring run-rate savings, the Bank expects that adjusted expense growth for the 2025 fiscal year will be in the range of 5-7%
5
. However, given the ramp up in
our governance and control investments over the course of fiscal 2024, we expect elevated expense growth in the second quarter of fiscal year 2025 on a year-
over-year basis
By segment, reported non-interest expenses reflect increases in Wealth Management and Insurance of $126 million, in Canadian Personal and Commercial
Banking of $102 million, and in Wholesale Banking of $35 million, partially offset by decreases in the Corporate segment of $144 million and in U.S. Retail of
$79 million.
The Bank’s reported efficiency ratio was 57.4%, compared to 58.6% in the first quarter last year. The Bank’s adjusted efficiency ratio, net of ISE was 59.0%,
compared with 57.4% in the first quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
Reported non-interest expenses were relatively flat, compared with the prior quarter, primarily reflecting higher employee-related expenses, including higher
variable compensation commensurate with higher revenues and the impact of the TD Share Compensation Initiative, offset by the prior quarter provision for
indirect tax matters in the Corporate Segment, and lower spend on legal and regulatory fees, marketing, occupancy, and technology. Adjusted non-interest
expenses increased $252 million, or 3%.
By segment, reported non-interest expenses reflect increases in Wholesale Banking of $199 million, in Wealth Management and Insurance of $66 million, and
in U.S. Retail of $56 million, partially offset by decreases in the Corporate segment of $285 million and in Canadian Personal and Commercial Banking of
$16 million.
The Bank’s reported efficiency ratio was 57.4%, compared with 51.9% in the prior quarter. The Bank’s adjusted efficiency ratio, net of ISE was 59.0%,
compared with 61.7% in the prior quarter.
5
foreign exchange impact, gross-up of the retailer program partners’ share of PCL for the Bank’s U.S. strategic card portfolio (“SCP Impact”), and productivity and restructuring savings. In
particular, in estimating its expense growth expectations, the Bank has assumed that the following three factors on the Bank’s fiscal 2025 adjusted expenses will be the same as the
Bank’s fiscal 2024 adjusted expenses: (i) variable compensation commensurate with higher revenue, (ii) foreign exchange translation, and (iii) SCP Impact. For reference, in the first
quarter of 2025, variable compensation commensurate with higher revenue and foreign exchange translation, in the aggregate, accounted for approximately one-third of the year-over-
year 12% increase in adjusted non-interest expenses, while the SCP Impact was not a significant driver of the increase. The Bank’s assumptions are subject to inherent uncertainties and
may vary based on factors both within and outside the Bank’s control, including the accuracy of the Bank’s employee compensation and benefit expense forecasts, impact of business
performance on variable compensation, inflation, the pace of productivity initiatives across the organization, and unexpected expenses such as legal matters. Refer to the “Risk Factors
That May Affect Future Results” section of this document for additional information about risks and uncertainties that may impact the Bank’s estimates.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 15
Income Taxes
The Bank’s effective income tax rate on a reported basis was 21.4% for the current quarter, compared with 19.1% in the first quarter last year and 13.4% in the
prior quarter. The year-over-year increase primarily reflects the impact of lower tax-exempt dividend income, taxes associated with Pillar Two legislation and
earnings mix. The quarter-over-quarter increase primarily reflects the non-taxable gain from the sale of Schwab shares in the prior quarter.
To allow for an after-tax calculation of adjusted income, the adjusted provision for income taxes is calculated by adjusting the taxes for each item of note using
the statutory income tax rate of the applicable legal entity. The adjusted effective income tax rate is calculated as the adjusted provision for income taxes as a
percentage of adjusted net income before taxes. The Bank’s adjusted effective income tax rate was 22.2% for the current quarter, compared with 20.4% in the first
quarter last year and 18.8% in the prior quarter. The year-over-year increase primarily reflects the impact of lower tax-exempt dividend income, taxes associated
with Pillar Two legislation and earnings mix. The quarter-over-quarter increase primarily reflects taxes associated with Pillar Two Legislation, the impact of higher
adjusted pre-tax income and earnings mix.
TABLE 10: INCOME TAXES – Reconciliation of Reported to Adjusted Provision for Income Taxes
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Income taxes at Canadian statutory income tax rate
$
906
27.8
%
$
1,110
27.8
%
$
920
27.7
%
Increase (decrease) resulting from:
Dividends received
(3)
(0.1)
(3)
(0.1)
(19)
(0.6)
Rate differentials on international operations
1
(199)
(6.1)
(573)
(14.3)
(271)
(8.2)
Other
(6)
(0.2)
–
–
4
0.2
Provision for income taxes and effective income tax rate – reported
$
698
21.4
%
$
534
13.4
%
$
634
19.1
%
Total adjustments for items of note
264
161
238
Provision for income taxes and effective income tax rate – adjusted
$
962
22.2
%
$
695
18.8
%
$
872
20.4
%
1
International Tax Reform – Pillar Two Global Minimum Tax
On December 20, 2021, the Organisation for Economic Co-operation and Development (OECD) published Pillar Two model rules as part of its efforts toward
international tax reform. The Pillar Two model rules provide for the implementation of a 15% global minimum tax for large multinational enterprises, which is to be
applied on a jurisdiction-by-jurisdiction basis. Pillar Two legislation was enacted in Canada on June 20, 2024 under Bill C-69, which includes the
Global Minimum
Tax Act
being paid in these countries. The rules were effective and implemented by the Bank on November 1, 2024. The IASB previously issued amendments to IAS 12
Income Taxes
which the Bank has applied. For the three months ended January 31, 2025, the Bank’s effective tax rate increased by approximately 0.5% due to Pillar Two taxes.
ECONOMIC SUMMARY AND OUTLOOK
The evolution of geopolitical and trade-related risks maintains a high degree of uncertainty on both the economic outlook and the inflation trajectory. However,
absent a significant materialization of negative risks, the global economy remains on track for a solid growth performance in calendar 2025. A moderate slowdown
in the U.S. expansion over the past year and still-soft conditions in Canada, the E.U. and the U.K., has helped to cool inflation and enabled central banks to lower
interest rates. TD Economics expects future interest rate reductions to be gradual, as central banks assess how growth and inflation respond.
The U.S. economy grew at a healthy 2.8% average annual pace in calendar 2024 supported by resilient consumer spending and strength in business
investment. Lower mortgage rates in the spring and summer of 2024 delivered a late-year boost to residential investment, although a more recent backup in bond
yields is likely to slow the sector’s momentum in the near term. With U.S. domestic demand outpacing that of many of its advanced economy peers, import growth
continued to run ahead of exports, leading to little growth support from international trade.
Based on January 2025 data, the U.S. job market has stabilized recently, with the unemployment rate at 4.0%, up modestly from a year ago. This can be
characterized as a normalization following tight conditions that persisted for longer than expected after the pandemic. The U.S. economy carries the markings of a
“soft landing” that has been allowing inflation pressures to gradually drift lower. Accordingly, the U.S. central bank trimmed its policy rate by a full percentage point
from September to December 2024, before pausing in January 2025.
At its January 2025 meeting, the Federal Reserve indicated that further interest rate reductions would require additional progress towards achieving its inflation
mandate. TD Economics expects this condition to be met by the summer of 2025, opening the door for the federal funds rate to be lowered to 3.75-4.00% by the
end of calendar 2025 – a level still on the restrictive side. The potential for higher federal government deficits and increased import tariffs represent upside risks to
both inflation and interest rates, while a strong U.S. dollar poses a downside risk.
After Canada’s economy slowed notably in calendar 2023, strong population gains and lower interest rates lifted economic growth in calendar 2024 to an
estimated 1.9% in real terms on a fourth quarter-over-fourth quarter basis. Population increases have also contributed to labour force growth outpacing job
creation, taking the unemployment rate higher and cooling labour market conditions. The unemployment rate was 6.6% in January 2025, above its pre-pandemic
level, but still below its long-run average. Looking ahead, TD Economics expects population growth to slow sharply over the next few years as the federal
government’s immigration policy changes restrict immigration. The negative impact of weaker population inflows on consumer spending and housing activity is
likely to be more than offset by the boost to activity from lower interest rates.
The risk of U.S. import tariffs on Canadian goods has emerged as a major downside risk to the Canadian economic outlook. Even if tariffs are not as severe as
proposed, the uncertainty is likely to dampen business investment in Canada.
No other major central bank has reduced interest rates as aggressively as the Bank of Canada in recent years. The Canadian central bank lowered its overnight
rate further to 3.00% in January 2025, two percentage points below its peak in calendar 2024. TD Economics expects the Bank of Canada to continue trimming
interest rates, reaching 2.25% by the middle of calendar 2025. Historically-wide interest rate differentials between Canada and the U.S. – alongside concerns
around U.S. import tariffs – have weakened the Canadian dollar. TD Economics expects the Canadian dollar will trade in the 68 to 70 U.S. cent range over the
next few quarters assuming major U.S. tariffs are avoided.
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank’s business operations and activities are organized around the following four key business segments: Canadian
Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the
Corporate segment.
Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank
measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 16
adjusted. For further details, refer to the “How We Performed” section of this document, the “Business Focus” section in the Bank’s 2024 MD&A, and Note 28 of
the Bank’s Consolidated Financial Statements for the year ended October 31, 2024. Effective the first quarter of 2025, certain U.S. governance and control
investments, including costs for U.S. BSA/AML remediation, previously reported in the Corporate segment are now reported in the U.S. Retail segment.
Comparative amounts have been reclassified to conform with the presentation adopted in the current period.
PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the
respective segment.
Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt
income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans
consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for
income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $15 million, compared with
$19 million in the prior quarter and $29 million in the first quarter last year.
Share of net income from investment in Schwab is reported in the U.S. Retail segment. Amounts for amortization of acquired intangibles, the acquisition and
integration charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab are recorded in the Corporate
segment.
TABLE 11: CANADIAN PERSONAL AND COMMERCIAL BANKING
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Net interest income
$
4,135
$
4,058
$
3,833
Non-interest income
1,014
1,006
1,051
Total revenue
5,149
5,064
4,884
Provision for (recovery of) credit losses – impaired
459
456
364
Provision for (recovery of) credit losses – performing
62
(26)
59
Total provision for (recovery of) credit losses
521
430
423
Non-interest expenses
2,086
2,102
1,984
Provision for (recovery of) income taxes
711
709
692
Net income
$
1,831
$
1,823
$
1,785
Selected volumes and ratios
Return on common equity
1
31.4
%
32.0
%
34.6
%
Net interest margin (including on securitized assets)
2
2.81
2.80
2.84
Efficiency ratio
40.5
41.5
40.6
Number of Canadian retail branches
1,063
1,060
1,062
Average number of full-time equivalent staff
27,422
27,930
29,271
1
2
GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the Glossary of this document for additional information about
these metrics.
Quarterly comparison – Q1 2025 vs. Q1 2024
Canadian Personal and Commercial Banking net income for the quarter was $1,831 million, an increase of $46 million, or 3%, compared with the first quarter last
year, reflecting higher revenue, partially offset by higher non-interest expenses and PCL. The annualized ROE for the quarter was 31.4%, compared with 34.6% in
the first quarter last year.
Revenue for the quarter was $5,149 million, an increase of $265 million, or 5%, compared with the first quarter last year. Net interest income was
$4,135 million, an increase of $302 million, or 8%, primarily reflecting volume growth. Average loan volumes increased $24 billion, or 4%, reflecting 4% growth in
personal loans and 6% growth in business loans. Average deposit volumes increased $25 billion, or 5%, reflecting 4% growth in personal deposits and 7% growth
in business deposits. Net interest margin was 2.81%, a decrease of 3 basis points (bps), primarily due to changes to balance sheet mix reflecting the transition of
Bankers’ Acceptances (BAs) to Canadian Overnight Repo Rate Average (CORRA)-based loans. Non-interest income was $1,014 million, a decrease of
$37 million, or 4%, compared with the first quarter last year, primarily reflecting lower fees due to the transition of BAs to CORRA-based loans in the prior year, the
impact of which is offset in net interest income.
PCL for the quarter was $521 million, an increase of $98 million compared with the first quarter last year. PCL – impaired was $459 million, an increase of
$95 million, or 26%, reflecting credit migration in the consumer and commercial lending portfolios. PCL – performing was $62 million, an increase of $3 million
compared to the prior year. The performing provisions this quarter were largely recorded in the commercial lending portfolio reflecting policy and trade uncertainty
that could impact the economic trajectory and credit performance, partially offset by an update to the economic forecast. Total PCL as an annualized percentage of
credit volume was 0.35%, an increase of 5 bps compared with the first quarter last year.
Non-interest expenses for the quarter were $2,086 million, an increase of $102 million, or 5%, compared with the first quarter last year, reflecting higher
technology spend, the impact of TD Share Compensation Initiative, and various other operating expenses.
The efficiency ratio for the quarter was 40.5%, compared with 40.6% in the first quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
Canadian Personal and Commercial Banking net income for the quarter was $1,831 million, an increase of $8 million, relatively flat compared with the prior
quarter, primarily reflecting higher revenue and lower non-interest expenses, partially offset by higher PCL. The annualized ROE for the quarter was 31.4%,
compared with 32.0% in the prior quarter.
Revenue increased $85 million, or 2%, compared with the prior quarter. Net interest income increased $77 million, or 2%, reflecting volume growth and higher
margins. Average loan volumes increased $6 billion, or 1%, reflecting 1% growth in personal loans and 2% growth in business loans. Average deposit volumes
increased $8 billion, or 2%, reflecting 1% growth in personal deposits and 3% growth in business deposits. Net interest margin was 2.81%, an increase of 1 basis
point, primarily driven by changes to balance sheet mix. As we look forward to Q2, while many factors can impact margins, including the impact of any further Bank
of Canada rate cuts, competitive market dynamics, and deposit reinvestment rates and maturity profiles, we expect NIM to be relatively stable
6
. Non-interest
income increased $8 million, or 1% compared with the prior quarter.
6
The Bank’s Q2 2025 net interest margin expectations for the segment are based on the Bank’s assumptions regarding factors such as Bank of Canada rate cuts, competitive market
dynamics, and deposit reinvestment rates and maturity profiles, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect Future
Results” section of the Bank’s 2024 MD&A and the first quarter 2025 MD&A.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 17
PCL for the quarter was $521 million, an increase of $91 million compared with the prior quarter. PCL – impaired was $459 million, an increase of $3 million, or
1%, reflecting credit migration in the consumer lending portfolios largely offset by lower provisions in the commercial lending portfolio. PCL – performing was a
build of $62 million, compared with a recovery of $26 million in the prior quarter. The performing provisions this quarter were largely recorded in the commercial
lending portfolio reflecting policy and trade uncertainty that could impact the economic trajectory and credit performance, partially offset by an update to the
economic forecast. Total PCL as an annualized percentage of credit volume was 0.35%, an increase of 5 bps compared with the prior quarter.
Non-interest expenses decreased $16 million, or 1% compared with the prior quarter.
The efficiency ratio was 40.5%, compared with 41.5% in the prior quarter.
U.S. Retail
Update on U.S. Balance Sheet Restructuring Activities
The Bank continued to focus on executing the balance sheet restructuring activities disclosed in the 2024 MD&A to help ensure we can continue to support
customers’ financial needs in the U.S. while not exceeding the limitation on the combined total assets of TD Bank, N.A. and TD Bank USA, N.A. (the “U.S. Bank”).
As previously disclosed, the Bank expects to reposition its U.S. investment portfolio by selling up to US$50 billion of lower yielding investment securities and
reinvesting the proceeds into a similar composition of assets but yielding higher rates. During the first quarter, the Bank sold approximately US$13.1 billion of
bonds. In the aggregate, since the announcement of the U.S. balance sheet restructuring activities on October 10, 2024, through January 31, 2025, the Bank has
sold approximately US$15.9 billion of bonds from its U.S. investment portfolio for an aggregate loss of US$875 million pre-tax and US$657 million after-tax.
Between February 1, 2025, through February 26, 2025, the Bank sold an additional US$3.1 billion of bonds, resulting in a loss of US$197 million pre-tax and
US$148 million after-tax. The Bank expects to complete its investment portfolio repositioning no later than the first half of calendar 2025 and expects the net
interest income benefit from these sales to be at the upper end of the previously disclosed range of US$300 million to US$500 million pre-tax in fiscal 2025
7
.
In addition, the Bank continues to target reducing the U.S. Bank’s assets by approximately 10% from the asset level as of September 30, 2024, largely by selling
or winding down certain non-scalable or non-core U.S. loan portfolios that do not align with the U.S. Retail segment’s focused strategy or have lower returns on
investment such as the correspondent lending, residential jumbo mortgage, export and import lending, and commercial auto dealer portfolios. This reduction in
assets combined with natural balance sheet run-off, is expected to be largely complete by the end of fiscal 2025 and reduce net interest income in the U.S. Retail
segment by approximately US$200 million to US$225 million pre-tax in fiscal 2025
8
.
This quarter, the Bank used proceeds from investment maturities, plus cash on hand, to pay down US$25 billion of short-term borrowings. In addition, loans were
reduced by US$2 billion, reflecting loan run-off and some loan sales in certain non-scalable and non-core U.S. loan portfolios. Accordingly, as of January 31, 2025,
the combined total assets of the U.S. Bank were US$402 billion. In the aggregate, total losses associated with the Bank’s U.S. balance sheet restructuring
activities from October 10, 2024 through January 31, 2025 are US$878 million pre-tax and US$659 million after-tax. In total, the Bank’s collective balance sheet
restructuring actions are expected to result in a loss up to US$1.5 billion after-tax, and impact capital as executed
Subsequent to quarter end, the Bank reached an agreement to sell approximately US$9 billion of certain U.S. residential mortgage loans (correspondent lending
loans), which is expected to result in a recognition of a pre-tax loss of approximately US$600 million in the second quarter of 2025
7
amount of net interest income benefit, are subject to risk and uncertainties and are based on assumptions regarding the timing of when such bonds are sold, the interest rates at the time
of sale as well as other market factors and conditions which are not entirely within the Bank’s control.
8
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 to sell the assets will depend on market factors and conditions and any sale will likely be subject to customary closing terms and
conditions which could involve regulatory approvals which are not entirely within the Bank’s control.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 18
TABLE 12: U.S. RETAIL
(millions of dollars, except as noted)
For the three months ended
January 31
October 31
January 31
Canadian Dollars
2025
2024
2024
Net interest income
$
$
$
Non-interest income (loss) – reported
(282)
Non-interest income – adjusted
1,2
Total revenue – reported
Total revenue – adjusted
1,2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(78)
(29)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
1,3
Provision for (recovery of) income taxes – reported
(192)
(50)
(17)
Provision for (recovery of) income taxes – adjusted
1
U.S. Retail Bank net income – reported
U.S. Retail Bank net income – adjusted
1
Share of net income from investment in Schwab
4,5
Net income – reported
$
$
$
Net income – adjusted
1
U.S. Dollars
Net interest income
$
$
$
Non-interest income (loss) – reported
(198)
Non-interest income – adjusted
1,2
Total revenue – reported
Total revenue – adjusted
1,2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(53)
(21)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
1,3
Provision for (recovery of) income taxes – reported
(136)
(37)
(12)
Provision for (recovery of) income taxes – adjusted
1
U.S. Retail Bank net income – reported
U.S. Retail Bank net income – adjusted
1
Share of net income from investment in Schwab
4,5
Net income – reported
$
$
$
Net income – adjusted
1
Selected volumes and ratios
Return on common equity – reported
6
%
%
%
Return on common equity – adjusted
1,6
Net interest margin
1,7
Efficiency ratio – reported
Efficiency ratio – adjusted
1
Assets under administration (billions of U.S. dollars)
8
$
$
$
Assets under management (billions of U.S. dollars)
8
Number of U.S. retail stores
Average number of full-time equivalent staff
1
document.
2
i.
US$170 million after tax).
3
i.
US$226 million after tax); and
ii.
4
The Bank’s share of Schwab’s earnings is reported with a one-month lag. Refer to Note 7 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements for further details.
5
The after-tax amounts for amortization of acquired intangibles, the Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade, the Bank’s
share of Schwab’s restructuring charges, and the Bank’s share of Schwab’s FDIC special assessment charge are recorded in the Corporate segment.
6
Capital allocated to the business segment was 11.5% CET1 Capital.
7
Net interest margin is calculated by dividing U.S. Retail segment’s net interest income by average interest-earning assets excluding the impact related to sweep deposits arrangements
and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is
adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Net interest income and
average interest-earning assets used in the calculation are non-GAAP financial measures. Management believes this calculation better reflects segment performance.
8
For additional information about this metric, refer to the Glossary of this document.
Quarterly comparison – Q1 2025 vs. Q1 2024
U.S. Retail reported net income for the quarter was $342 million (US$247 million), a decrease of $528 million (US$396 million), or 61% (62% in U.S. dollars),
compared with the first quarter last year. On an adjusted basis, net income for the quarter was $1,038 million (US$736 million), a decrease of $142 million
(US$133 million), or 12% (15% in U.S. dollars). The reported and adjusted annualized ROE for the quarter were 2.9% and 8.6%, respectively, compared with 8.1%
and 11.0%, respectively, in the first quarter last year.
U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank’s investment in Schwab. Reported net income for the quarter from the
Bank’s investment in Schwab was $199 million (US$142 million), an increase of $5 million (a decrease of US$2 million), or 3% (a decrease of 1% in U.S. dollars),
compared with the first quarter last year.
U.S. Retail Bank reported net income was $143 million (US$105 million), a decrease of $533 million (US$394 million), or 79% (79% in U.S. dollars), compared
with the first quarter last year, primarily reflecting the impact of U.S. balance sheet restructuring activities, higher governance and control investments, including
costs for U.S. BSA/AML remediation, and higher PCL, partially offset by the impact of the FDIC special assessment charge in the first quarter last year. U.S. Retail
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 19
Bank adjusted net income was $839 million (US$594 million), a decrease of $147 million (US$131 million), or 15% (18% in U.S. dollars), compared with the first
quarter last year, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation and higher PCL, partially offset by higher
revenue.
Reported revenue for the quarter was US$1,962 million, a decrease of US$625 million, or 24%, compared with the first quarter last year. On an adjusted basis,
revenue for the quarter was US$2,614 million, an increase of US$27 million, or 1%. Net interest income of US$2,160 million, increased US$19 million, or 1%,
driven by higher deposit margins and the impact of U.S. balance sheet restructuring activities. Net interest margin of 2.86% decreased 17 bps due to maintaining
elevated liquidity levels (which negatively impacted net interest margin by 19 bps), partially offset by the impact of U.S. balance sheet restructuring activities, and
higher deposit margins. Reported non-interest income (loss) was US($198) million, a decrease of US$644 million, compared with the first quarter last year,
reflecting the impact of U.S. balance sheet restructuring activities, partially offset by higher fee revenue. On an adjusted basis, non-interest income of
US$454 million increased US$8 million, or 2%, compared with the first quarter last year, reflecting higher fee revenue.
Average loan volumes increased US$2 billion, or 1%, compared with the first quarter last year. Personal loans increased 3%, reflecting solid mortgage and auto
originations, and business loans decreased 1%. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring
program, average loan volumes increased US$5 billion, or 3%
9,10
. Average deposit volumes decreased US$10 billion, or 3%, reflecting a 11% decrease in sweep
deposits and a 4% decrease in business deposits, partially offset by a 3% increase in personal deposit volumes. Excluding sweep deposits, average deposits were
flat.
Assets under administration (AUA) were US$43 billion as of January 31, 2025, an increase of US$3 billion, or 8%, compared with the first quarter last year,
reflecting net asset growth. Assets under management (AUM) were US$9 billion as of January 31, 2025, an increase of US$2 billion, or 29%, compared with the
first quarter last year.
PCL for the quarter was US$318 million, an increase of US$33 million compared with the first quarter last year. PCL – impaired was US$371 million, an
increase of US$92 million, or 33%, largely reflecting credit migration in the commercial lending portfolio, and the adoption impact of a model update in the U.S.
Cards portfolio. PCL – performing was a recovery of US$53 million, compared with a build of US$6 million in the prior year. The performing recovery this quarter
was largely recorded in the consumer lending portfolios, reflecting the adoption impact of a model update in the U.S. Cards portfolio, partially offset by a build in
the commercial lending portfolio related to policy and trade uncertainty that could impact the economic trajectory and credit performance. U.S. Retail PCL including
only the Bank’s share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.67%, an increase of 6 bps, compared with
the first quarter last year.
Effective the first quarter of 2025, U.S. Retail segment non-interest expenses include certain U.S. governance and control investments, including costs for U.S.
BSA/AML remediation which were previously reported in the Corporate segment. Comparative amounts have been reclassified to conform with the presentation
adopted in the current period. Reported non-interest expenses for the quarter were US$1,675 million, a decrease of US$140 million, or 8%, compared to the first
quarter last year, reflecting the impact of the FDIC special assessment charge in the first quarter last year, partially offset by higher governance and control
investments including costs of US$86 million for U.S. BSA/AML remediation, and higher operating expenses. Our governance and control investments in this
quarter were higher compared to the first quarter last year as remediation efforts progressed over this period and we expect this year-over-year trend to continue
into the second quarter of 2025
11
. On an adjusted basis, non-interest expenses increased US$160 million, or 11%, reflecting higher governance and control
investments including costs for U.S. BSA/AML remediation, and higher operating expenses.
The reported and adjusted efficiency ratios for the quarter were 85.4% and 64.1%, respectively, compared with 70.2% and 58.6%, respectively, in the first
quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
U.S. Retail reported net income was $342 million (US$247 million), a decrease of $360 million (US$269 million), or 51% (52% in U.S. dollars), compared with the
prior quarter. On an adjusted basis, net income for the quarter was $1,038 million (US$736 million), an increase of $104 million (US$51 million), or 11% (7% in
U.S. dollars). The reported and adjusted annualized ROE for the quarter were 2.9% and 8.6%, respectively, compared with 6.2% and 8.2%, respectively, in the
prior quarter.
The contribution from Schwab of $199 million (US$142 million) increased $45 million (US$28 million), or 29% (25% in U.S. dollars), compared with the prior
quarter.
U.S. Retail Bank reported net income was $143 million (US$105 million), a decrease of $405 million (US$297 million), or 74% (74% in U.S. dollars) compared
with the prior quarter, primarily reflecting the impact of U.S. balance sheet restructuring activities, higher PCL, and the expense recovery of the FDIC special
assessment charge in the prior quarter, partially offset by the impact of the charges for the global resolution of the investigations into the Bank’s U.S. BSA/AML
program in the prior quarter. U.S. Retail Bank adjusted net income was $839 million (US$594 million), an increase of $59 million (US$23 million), or 8% (4% in
U.S. dollars), compared to the prior quarter, primarily reflecting higher revenue, partially offset by higher non-interest expenses (lower in U.S. dollars) and higher
PCL.
Reported revenue was US$1,962 million, a decrease US$391 million, or 17%, compared with the prior quarter. Net interest income of US$2,160 million
increased US$19 million, or 1%, reflecting the impact of U.S. balance sheet restructuring activities, partially offset by lower deposit margins. Net interest margin of
2.86% increased 9 bps, compared with the prior quarter, due to impact of U.S. balance sheet restructuring activities and normalization of liquidity levels (which
positively impacted net interest margin by 5 bps), partially offset by lower deposit margins. Net Interest Margin in the second quarter is expected to deliver
substantial expansion, reflecting ongoing U.S. balance sheet restructuring activities and further normalization of our elevated liquidity levels
12
. Reported non-
interest income (loss) was US($198) million, compared with reported non-interest income of US$212 million in the prior quarter, reflecting the impact of U.S.
balance sheet restructuring activities. On an adjusted basis, non-interest income of US$454 million increased US$16 million, or 4%, compared with the prior
quarter, reflecting higher fee revenue.
Average loan volumes were relatively flat, compared with the prior quarter, reflecting a 1% decrease in business loans, offset by a 1% increase in personal
loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, average loan volumes were
9
portfolios. Q1 2025 average loan volumes: US$192 billion (Q4 2024: US$193 billion; Q1 2024: US$191 billion). Q1 2025 average loan volumes of loan portfolios identified for sale or run-
off: US$22 billion (Q4 2024: US$23 billion; Q1 2024: US$25 billion). Q1 2025 average loan volumes excluding loan portfolios identified for sale or run-off: US$170 billion (Q4 2024:
US$170 billion; Q1 2024: US$166 billion).
10
document.
11
plans, including its ability to successfully execute against the U.S. BSA/AML remediation program. As well, expense estimates may vary if the scope of work in the U.S. BSA/AML
remediation plan changes as a result of additional findings that are identified as work progresses.
12
execution of planned restructuring opportunities, and other variables, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect
Future Results” section of this document.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 20
flat
. Average deposit volumes increased US$3 billion, or 1%, compared with the prior quarter, reflecting a 1% increase in personal deposits and a 3% increase
in sweep deposits, partially offset by a 1% decrease in business deposits.
AUA were US$43 billion as of January 31, 2025, flat compared with the prior quarter. AUM were US$9 billion, an increase of $1 billion, or 13%, compared with
the prior quarter.
PCL for the quarter was US$318 million, an increase of US$33 million compared with the prior quarter. PCL – impaired was US$371 million, an increase of
US$65 million, or 21%, largely reflected in the U.S. Cards portfolio, related to the adoption impact of a model update, and typical seasonal trends. PCL –
performing was a recovery of US$53 million, compared with a recovery of US$21 million in the prior quarter. The performing recovery this quarter was largely
recorded in the consumer lending portfolios, reflecting the adoption impact of a model update in the U.S. Cards portfolio, partially offset by a build in the
commercial lending portfolio related to policy and trade uncertainty that could impact the economic trajectory and credit performance. U.S. Retail PCL including
only the Bank’s share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.67%, an increase of 7 bps, compared with
the prior quarter.
Reported non-interest expenses for the quarter were US$1,675 million, a decrease of US$28 million, or 2%, compared with the prior quarter, largely reflecting
lower legal and regulatory expenses, partially offset by higher operating expenses. On an adjusted basis, non-interest expenses decreased US$42 million, or 2%.
The reported and adjusted efficiency ratios for the quarter were 85.4% and 64.1%, respectively, compared with 72.4% and 66.6%, respectively, in the prior
quarter.
THE CHARLES SCHWAB CORPORATION
Refer to Note 7, Investment in Associates and Joint Ventures of the Bank’s first quarter 2025 Interim Consolidated Financial Statements for further information on
Schwab.
TABLE 13: WEALTH MANAGEMENT AND INSURANCE
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Net interest income
$
369
$
321
$
285
Non-interest income
1
3,229
3,616
2,850
Total revenue
3,598
3,937
3,135
Provision for (recovery of) credit losses – impaired
–
–
–
Provision for (recovery of) credit losses – performing
–
–
–
Total provision for (recovery of) credit losses
–
–
–
Insurance service expenses
2
1,507
2,364
1,366
Non-interest expenses
1,173
1,107
1,047
Provision for (recovery of) income taxes
238
117
167
Net income
$
680
$
349
$
555
Selected volumes and ratios
Return on common equity
42.7
%
22.5
%
37.5
%
Return on common equity – Wealth Management
3
61.9
56.6
44.5
Return on common equity – Insurance
21.9
(13.1)
29.3
Efficiency ratio
32.6
28.1
33.4
Efficiency ratio, net of ISE
4
56.1
70.4
59.2
Assets under administration (billions of Canadian dollars)
5
$
687
$
651
$
576
Assets under management (billions of Canadian dollars)
556
530
479
Average number of full-time equivalent staff
15,059
14,939
15,386
1
2
3
4
Q1 2024: $1,769 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the
Glossary of this document for additional information about this metric.
5
Includes
AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment.
Quarterly comparison – Q1 2025 vs. Q1 2024
Wealth Management and Insurance net income for the quarter was $680 million, an increase of $125 million, or 23%, compared with the first quarter last year,
reflecting Wealth Management net income of $512 million, an increase of $157 million, or 44%, compared with the first quarter last year, and Insurance net income
of $168 million, a decrease of $32 million, or 16%, compared with the first quarter last year. The annualized ROE for the quarter was 42.7%, compared with 37.5%
in the first quarter last year. Wealth Management annualized ROE for the quarter was 61.9%, compared with 44.5% in the first quarter last year, and Insurance
annualized ROE for the quarter was 21.9% compared with 29.3% in the first quarter last year.
Revenue for the quarter was $3,598 million, an increase of $463 million, or 15%, compared with the first quarter last year. Non-interest income was
$3,229 million, an increase of $379 million, or 13%, reflecting higher insurance premiums, fee-based revenue, and transaction revenue. Net interest income was
$369 million, an increase of $84 million, or 29%, compared with the first quarter last year, reflecting higher deposit margins and volume growth.
AUA were $687 billion as at January 31, 2025, an increase of $111 billion, or 19%, and AUM were $556 billion as at January 31, 2025, an increase of
$77 billion, or 16%, compared with the first quarter last year, both reflecting market appreciation and net asset growth.
Insurance service expenses for the quarter were $1,507 million, an increase of $141 million, or 10%, compared with the first quarter last year, primarily reflecting
increased claims severity.
Non-interest expenses for the quarter were $1,173 million, an increase of $126 million, or 12%, compared with the first quarter last year, reflecting higher
variable compensation, higher spend supporting business growth initiatives from technology costs and employee-related expenses including the impact of TD
Share Compensation Initiative.
The efficiency ratio for the quarter was 32.6%, compared with 33.4% in the first quarter last year. The efficiency ratio, net of ISE for the quarter was 56.1%,
compared with 59.2% in the first quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
Wealth Management and Insurance net income for the quarter was $680 million, an increase of $331 million, or 95%, compared with the prior quarter, reflecting
Wealth Management net income of $512 million, an increase of $64 million, or 14%, compared with the prior quarter, and Insurance net income of $168 million, an
increase of $267 million, compared with a loss of $99 million in the prior quarter. The annualized ROE for the quarter was 42.7%, compared with 22.5% in the prior
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 21
quarter. Wealth Management annualized ROE for the quarter was 61.9%, compared with 56.6% in the prior quarter, and Insurance annualized ROE for the quarter
was 21.9% compared with -13.1% in the prior quarter.
Revenue decreased $339 million, or 9%, compared with the prior quarter, primarily as a result of reinsurance recoveries for catastrophe claims in the prior
quarter of $718 million. Non-interest income decreased $387 million, or 11%, reflecting lower reinsurance recoveries for catastrophe claims, partially offset by
lower costs of reinsurance reinstatement premiums, higher fee-based revenue, transaction revenue and insurance premiums. Net interest income increased
$48 million, or 15%, reflecting higher deposit volumes and margins.
AUA increased $36 billion, or 6%, and AUM increased $26 billion, or 5%, compared with the prior quarter, both reflecting market appreciation and net asset
growth.
Insurance service expenses for the quarter decreased $857 million, or 36%, compared with the prior quarter, primarily the result of estimated losses from
catastrophe claims of $1,020 million in the prior quarter, partially offset by increased claims severity.
Non-interest expenses increased $66 million, or 6%, compared with the prior quarter, primarily reflecting higher employee-related expenses including the impact
of TD Share Compensation Initiative and higher variable compensation.
The efficiency ratio for the quarter was 32.6%, compared with 28.1% in the prior quarter. The efficiency ratio, net of ISE for the quarter was 56.1%, compared
with 70.4% in the prior quarter.
TABLE 14: WHOLESALE BANKING
1
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Net interest income (loss) (TEB)
$
(107)
$
221
$
198
Non-interest income
2,107
1,550
1,582
Total revenue
2,000
1,771
1,780
Provision for (recovery of) credit losses – impaired
33
134
5
Provision for (recovery of) credit losses – performing
39
–
5
Total provision for (recovery of) credit losses
72
134
10
Non-interest expenses – reported
1,535
1,336
1,500
Non-interest expenses – adjusted
1,2
1,483
1,254
1,383
Provision for (recovery of) income taxes (TEB) – reported
94
66
65
Provision for (recovery of) income taxes (TEB) – adjusted
1
105
84
89
Net income – reported
$
299
$
235
$
205
Net income – adjusted
1
340
299
298
Selected volumes and ratios
Trading-related revenue (TEB)
3
$
904
$
633
$
730
Average gross lending portfolio (billions of Canadian dollars)
4
100.9
97.0
96.2
Return on common equity – reported
5
7.3
%
5.9
%
5.3
%
Return on common equity – adjusted
1,5
8.3
7.5
7.6
Efficiency ratio – reported
76.8
75.4
84.3
Efficiency ratio – adjusted
1
74.2
70.8
77.7
Average number of full-time equivalent staff
6,919
6,975
7,100
1
document.
2
($64 million after tax), Q1 2024: $117 million ($93 million after tax).
3
$784 million. Trading-related revenue (TEB) is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the Glossary
of this document for additional information about this metric.
4
5
Quarterly comparison – Q1 2025 vs. Q1 2024
Wholesale Banking reported net income for the quarter was $299 million, an increase of $94 million, or 46%, compared with the first quarter last year, primarily
reflecting higher revenues, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net income was $340 million, an increase of
$42 million, or 14%, compared with the first quarter last year.
Revenue for the quarter was $2,000 million, an increase of $220 million, or 12%, compared with the first quarter last year. Higher revenue primarily reflects
higher trading-related revenue and underwriting fees.
PCL for the quarter was $72 million, an increase of $62 million compared with the first quarter last year. PCL – impaired was $33 million, an increase of
$28 million compared with the prior year, primarily reflecting a few new impairments. PCL – performing was $39 million, an increase of $34 million compared to the
prior year. The performing build this quarter reflects policy and trade uncertainty that could impact the economic trajectory and credit performance.
Reported non-interest expenses for the quarter were $1,535 million, an increase of $35 million, or 2%, compared with the first quarter last year, primarily
reflecting higher variable compensation commensurate with higher revenues, higher front office and technology costs. The higher non-interest expenses are
partially offset by the impact of a provision related to the U.S. record keeping and trading regulatory matters recorded in the same quarter last year and lower
acquisition and integration-related costs. On an adjusted basis, non-interest expenses were $1,483 million, an increase of $100 million, or 7%.
Quarterly comparison – Q1 2025 vs. Q4 2024
Wholesale Banking reported net income for the quarter was $299 million, an increase of $64 million, or 27%, compared with the prior quarter, primarily reflecting
higher revenues and lower PCL, partially offset by higher non-interest expenses. On an adjusted basis, net income was $340 million, an increase of $41 million, or
14%.
Revenue for the quarter increased $229 million, or 13%, compared with the prior quarter. Higher revenue primarily reflects higher trading-related revenue.
PCL for the quarter was $72 million, a decrease of $62 million compared with the prior quarter. PCL – impaired was $33 million, a decrease of $101 million, due
to higher impairments in the prior period. PCL – performing was $39 million, an increase of $39 million. The performing build this quarter reflects policy and trade
uncertainty that could impact the economic trajectory and credit performance.
Reported non-interest expenses for the quarter increased $199 million, or 15%, compared with the prior quarter, primarily reflecting higher variable
compensation commensurate with higher revenues, partially offset by lower acquisition and integration-related costs. On an adjusted basis, non-interest expenses
increased $229 million, or 18%.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 22
TABLE 15: CORPORATE
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Net income (loss) – reported
$
(359)
$
526
$
(591)
Adjustments for items of note
Amortization of acquired intangibles
61
60
94
Acquisition and integration charges related to the Schwab transaction
–
35
32
Share of restructuring and other charges from investment in Schwab
–
–
49
Restructuring charges
–
–
291
Impact from the terminated FHN acquisition-related capital hedging strategy
54
59
57
Gain on sale of Schwab shares
–
(1,022)
–
Indirect tax matters
–
226
–
Less: impact of income taxes
22
84
113
Net income (loss) – adjusted
1
$
(266)
$
(200)
$
(181)
Decomposition of items included in net income (loss) – adjusted
Net corporate expenses
2
$
(370)
$
(389)
$
(217)
Other
104
189
36
Net income (loss) – adjusted
1
$
(266)
$
(200)
$
(181)
Selected volumes
Average number of full-time equivalent staff
22,748
22,826
23,437
1
document.
2
Quarterly comparison – Q1 2025 vs. Q1 2024
Corporate segment’s reported net loss for the quarter was $359 million, compared with a reported net loss of $591 million in the first quarter last year. The lower
net loss primarily reflects the impacts of prior year restructuring charges, share of restructuring charges from investment in Schwab and higher revenue from
treasury and balance sheet activities in the current quarter. Net corporate expenses increased $153 million compared to the prior year, primarily reflecting higher
governance and control costs, pension and benefit related costs. The adjusted net loss for the quarter was $266 million, compared with an adjusted net loss of
$181 million in the first quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
Corporate segment’s reported net loss for the quarter was $359 million, compared with a reported net income of $526 million in the prior quarter. The quarter-over-
quarter decrease primarily reflects the impacts of prior quarter gain on sale of Schwab shares, partially offset by the provision for indirect tax matters. Net
corporate expenses decreased $19 million compared to the prior quarter. The adjusted net loss for the quarter was $266 million, compared with an adjusted net
loss of $200 million in the prior quarter.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 23
QUARTERLY RESULTS
The following table provides summary information related to the Bank’s eight most recently completed quarters.
TABLE 16: QUARTERLY RESULTS
(millions of Canadian dollars, except as noted)
For the three months ended
2025
2024
2023
Jan. 31
Oct. 31
Jul. 31
Apr. 30
Jan. 31
Oct. 31
Jul. 31
Apr. 30
Net interest income
$
7,866
$
7,940
$
7,579
$
7,465
$
7,488
$
7,494
$
7,289
$
7,428
Non-interest income
6,183
7,574
6,597
6,354
6,226
5,684
5,625
4,969
Total revenue
14,049
15,514
14,176
13,819
13,714
13,178
12,914
12,397
Provision for (recovery of) credit losses
1,212
1,109
1,072
1,071
1,001
878
766
599
Insurance service expenses
1,507
2,364
1,669
1,248
1,366
1,346
1,386
1,118
Non-interest expenses
8,070
8,050
11,012
8,401
8,030
7,628
7,359
6,756
Provision for (recovery of) income taxes
698
534
794
729
634
616
704
859
Share of net income from investment in Schwab
231
178
190
194
141
156
182
241
Net income (loss) – reported
2,793
3,635
(181)
2,564
2,824
2,866
2,881
3,306
Pre-tax adjustments for items of note
1
Amortization of acquired intangibles
61
60
64
72
94
92
88
79
Acquisition and integration charges related to the
Schwab transaction
–
35
21
21
32
31
54
30
Share of restructuring and other charges from
investment in Schwab
–
–
–
–
49
35
–
–
Restructuring charges
–
–
110
165
291
363
–
–
Acquisition and integration-related charges
52
82
78
102
117
197
143
73
Charges related to the terminated FHN acquisition
2
–
–
–
–
–
–
84
154
Payment related to the termination of the
FHN transaction
2
–
–
–
–
–
–
306
–
Impact from the terminated FHN acquisition-related
capital hedging strategy
54
59
62
64
57
64
177
134
Impact of retroactive tax legislation on payment card
clearing services
3
–
–
–
–
–
–
57
–
Gain on sale of Schwab shares
–
(1,022)
–
–
–
–
–
–
U.S. balance sheet restructuring
927
311
–
–
–
–
–
–
Indirect tax matters
–
226
–
–
–
–
–
–
Civil matter provision/Litigation settlement
2,3
–
–
–
274
–
–
–
39
FDIC special assessment
–
(72)
–
103
411
–
–
–
Global resolution of the investigations into the
Bank’s U.S. BSA/AML program
–
52
3,566
615
–
–
–
–
Total pre-tax adjustments for items of note
1
1,094
(269)
3,901
1,416
1,051
782
909
509
Less: Impact of income taxes
264
161
74
191
238
163
141
108
Net income – adjusted
1
3,623
3,205
3,646
3,789
3,637
3,485
3,649
3,707
Preferred dividends and distributions on other
equity instruments
86
193
69
190
74
196
74
210
Net income available to common
shareholders – adjusted
1
$
3,537
$
3,012
$
3,577
$
3,599
$
3,563
$
3,289
$
3,575
$
3,497
(Canadian dollars, except as noted)
Basic earnings (loss) per share
Reported
$
1.55
$
1.97
$
(0.14)
$
1.35
$
1.55
$
1.48
$
1.53
$
1.69
Adjusted
1
2.02
1.72
2.05
2.04
2.01
1.82
1.95
1.91
Diluted earnings (loss) per share
Reported
1.55
1.97
(0.14)
1.35
1.55
1.48
1.53
1.69
Adjusted
1
2.02
1.72
2.05
2.04
2.00
1.82
1.95
1.91
Return on common equity – reported
10.1
%
13.4
%
(1.0)
%
9.5
%
10.9
%
10.5
%
10.8
%
12.4
%
Return on common equity – adjusted
1
13.2
11.7
14.1
14.5
14.1
12.9
13.8
14.0
(billions of Canadian dollars, except as noted)
Average total assets
$
2,063
$
2,035
$
1,968
$
1,938
$
1,934
$
1,910
$
1,898
$
1,944
Average interest-earning assets
4
1,883
1,835
1,778
1,754
1,729
1,715
1,716
1,728
Net interest margin – reported
1.66
%
1.72
%
1.70
%
1.73
%
1.72
%
1.73
%
1.69
%
1.76
%
Net interest margin – adjusted
1
1.67
1.74
1.71
1.75
1.74
1.75
1.70
1.81
1
“How We Performed” section of this document.
2
i.
ii.
iii.
3
i.
ii.
4
Performed” section and the Glossary of this document for additional information about these metrics.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 24
BALANCE SHEET REVIEW
TABLE 17: SELECTED INTERIM CONSOLIDATED BALANCE SHEET ITEMS
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Assets
Cash and Interest-bearing deposits with banks
$
142,992
$
176,367
Trading loans, securities, and other
198,855
175,770
Non-trading financial assets at fair value through profit or loss
6,810
5,869
Derivatives
83,885
78,061
Financial assets designated at fair value through profit or loss
6,299
6,417
Financial assets at fair value through other comprehensive income
108,691
93,897
Debt securities at amortized cost, net of allowance for credit losses
255,743
271,615
Securities purchased under reverse repurchase agreements
222,119
208,217
Loans, net of allowance for loan losses
965,312
949,549
Investment in Schwab
9,242
9,024
Other
93,606
86,965
Total assets
$
2,093,554
$
2,061,751
Liabilities
Trading deposits
$
27,198
$
30,412
Derivatives
75,017
68,368
Financial liabilities designated at fair value through profit or loss
210,700
207,914
Deposits
1,290,486
1,268,680
Obligations related to securities sold under repurchase agreements
193,856
201,900
Subordinated notes and debentures
13,671
11,473
Other
163,622
157,844
Total liabilities
1,974,550
1,946,591
Total equity
119,004
115,160
Total liabilities and equity
$
2,093,554
$
2,061,751
Total assets
depreciation in the Canadian dollar increased total assets by $43 billion.
The increase in total assets reflects an increase in trading loans, securities, and other of $23 billion, loans, net of allowances for loan losses of $16 billion, financial
assets at fair value through other comprehensive income of $15 billion, securities purchased under reverse repurchase agreements of $14 billion, other assets of
$6 billion, derivative assets of $6 billion, and non-trading financial assets at fair value through profit or loss of $1 billion. The increase was partially offset by a
decrease in cash and interest-bearing deposits with banks of $33 billion and debt securities at amortized cost of $16 billion.
Cash and interest-bearing deposits with banks
decreased $33 billion primarily reflecting cash management activities, partially offset by the impact of foreign
exchange translation.
Trading loans, securities, and other
increased $23 billion primarily in commodities held for trading, equity securities, government securities held for trading, and
the impact of foreign exchange translation.
Non-trading financial assets at fair value through profit or loss
increased $1 billion reflecting new investments.
Derivative
assets
increased $6 billion primarily reflecting changes in mark-to-market values of foreign exchange and interest rate contracts.
Financial assets at fair value through other comprehensive income
the impact of foreign exchange translation, partially offset by maturities.
Debt securities at amortized cost, net of allowance for credit losses
balance sheet restructuring activities, partially offset by new investments and the impact of foreign exchange translation.
Securities purchased under reverse repurchase agreements
increased $14 billion
primarily
reflecting an increase in volume and the impact of foreign
exchange translation.
Loans, net of allowance for loan losses
estate secured lending.
Investment in Schwab
remains relatively flat as the impact of the Bank’s share of Schwab’s other comprehensive income and net income is offset by the impact
of foreign exchange translation.
Other
and the impact of foreign exchange translation.
Total liabilities
depreciation in the Canadian dollar increased total liabilities by $43 billion.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 25
The increase in total liabilities reflects an increase in deposits of $22 billion, derivative liabilities of $7 billion, other liabilities of $5 billion, financial liabilities
designated at fair value through profit or loss of $3 billion, and subordinated notes and debentures of $2 billion. The increase was partially offset by a decrease in
obligations related to securities sold under repurchase agreements of $8 billion and trading deposits of $3 billion.
Trading deposits
decreased $3 billion primarily reflecting maturities, partially offset by the impact of foreign exchange translation.
Derivative
liabilities
increased $7 billion primarily reflecting changes in mark-to-market values of foreign exchange and interest rate contracts.
Financial liabilities designated at fair value through profit or loss
partially offset by maturities.
Deposits
increased $22 billion primarily reflecting the impact of foreign exchange translation and a volume increase in personal deposits, partially offset by volume
decrease in bank deposits.
Obligations related to securities sold under repurchase agreements
decreased $8 billion primarily reflecting a decrease in volume, partially offset by the
impact of foreign exchange translation.
Subordinated notes and debentures
Other
translation, partially offset by a decrease in provision for investigations related to the Bank’s U.S. BSA/AML program due to payments.
Equity
was $119 billion as at January 31, 2025, and increase of $4 billion from October 31, 2024. The increase reflects gains in accumulated other comprehensive
income and retained earnings. The increase in accumulated other comprehensive income is primarily driven by the impact of foreign currency translation.
CREDIT PORTFOLIO QUALITY
Quarterly comparison – Q1 2025 vs. Q1 2024
Gross impaired loans were $5,453 million as at January 31, 2025, an increase of $1,744 million, or 47%, compared with the first quarter last year. Canadian
Personal and Commercial Banking gross impaired loans increased $387 million, or 24%, compared with the first quarter last year, reflecting formations outpacing
resolutions in the consumer and commercial lending portfolios. U.S. Retail gross impaired loans increased $982 million, or 48%, compared with the first quarter
last year, reflecting formations outpacing resolutions in the commercial and consumer lending portfolios, and the impact of foreign exchange. Wholesale gross
impaired loans increased $375 million, compared with the first quarter last year, reflecting formations outpacing resolutions. Net impaired loans were $3,635 million
as at January 31, 2025, an increase of $1,109 million, or 44%, compared with the first quarter last year.
The allowance for credit losses of $9,598 million as at January 31, 2025 was comprised of Stage 3 allowance for impaired loans of $1,824 million, Stage 2
allowance of $4,774 million and Stage 1 allowance of $2,996 million, and the allowance for debt securities of $4 million. The Stage 1 and 2 allowances are for
performing loans and off-balance sheet instruments.
The Stage 3 allowance for loan losses increased $637 million, or 54%, reflective of credit migration in the Business and Government and consumer lending
portfolios, the impact of foreign exchange, and the adoption impact of a model update in the U.S. Cards portfolio. The Stage 1 and Stage 2 allowance for loan
losses increased $692 million, or 10%, reflecting credit migration, reserve build related to elevated uncertainty associated with policy and trade, the impact of
foreign exchange, and volume growth, partially offset by the adoption impact of a model update in the U.S. Cards portfolios. The allowance change included an
increase of $100 million attributable to the retailer program partners’ share of the U.S. strategic cards portfolio.
Forward-looking information, including macroeconomic variables deemed to be predictive of expected credit losses (ECLs) based on the Bank’s experience, is
used to determine ECL scenarios and associated probability weights to determine the probability-weighted ECLs. Each quarter, all base forecast macroeconomic
variables are refreshed, resulting in new upside and downside macroeconomic scenarios. The probability weightings assigned to each ECL scenario are also
reviewed each quarter and updated as required, as part of the Bank’s ECL governance process. As a result of periodic reviews and quarterly updates, the
allowance for credit losses may be revised to reflect updates in loss estimates based on the Bank’s recent loss experience and its forward-looking views. The Bank
periodically reviews the methodology and has performed certain additional quantitative and qualitative portfolio and loan level assessments of significant increase
in credit risk. Refer to Note 3 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements for further details on forward-looking information.
The probability-weighted allowance for credit losses reflects the Bank’s forward-looking views.
To
the extent that certain anticipated effects cannot be fully
incorporated into quantitative models, management continues to exercise expert credit judgment in determining the amount of ECLs, including for risks related to
elevated uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future quarters as additional information becomes
available. Refer to Note 4 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements for additional details.
The Bank calculates allowances for ECLs on debt securities measured at amortized cost and fair value through other comprehensive income (FVOCI). The Bank
has $360 billion in such debt securities, all of which are performing (Stage 1 and 2) and none are impaired (Stage 3). The allowance for credit losses was
$3 million for debt securities at amortized cost (DSAC) and $1 million for debt securities at FVOCI, for a total of $4 million, an increase of $1 million, compared with
the first quarter last year.
Quarterly comparison – Q1 2025 vs. Q4 2024
Gross impaired loans increased $504 million, or 10%, compared with the prior quarter, largely related to new formations outpacing resolutions in the Business &
Government and consumer lending portfolios, and the impact of foreign exchange. Impaired loans net of allowance increased $228 million, or 7%, compared with
the prior quarter.
The allowance for credit losses of $9,598 million as at January 31, 2025 was comprised of Stage 3 allowance for impaired loans of $1,824 million, Stage 2
allowance of $4,774 million and Stage 1 allowance of $2,996 million, and the allowance for debt securities of $4 million. The Stage 1 and 2 allowances are for
performing loans and off-balance sheet instruments. The Stage 3 allowance for loan losses increased $271 million, or 17%, compared with the prior quarter,
largely driven by credit migration in the Business & Government lending portfolios, the impact of foreign exchange, and the adoption impact of a model update in
the U.S. Cards portfolio. The Stage 1 and Stage 2 allowance for loan losses increased $186 million, or 2%, compared with the prior quarter, reflecting reserve build
in the Business & Government lending portfolios related to policy and trade uncertainty, and the impact of foreign exchange, partially offset by an update to the
economic forecast and the adoption impact of a model update in the U.S. Cards portfolio.
The allowance for debt securities was $4 million, consistent with the prior quarter.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 26
For further details on loans, impaired loans, allowance for credit losses, and on the Bank’s use of forward-looking information and macroeconomic variables in
determining its allowance for credit losses, refer to Note 6 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements.
TABLE 18: CHANGES IN GROSS IMPAIRED LOANS AND ACCEPTANCES
1,2
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
Personal, Business, and Government Loans
Impaired loans as at beginning of period
$
4,949
$
4,170
$
3,299
Classified as impaired during the period
2,432
2,657
2,005
Transferred to performing during the period
(327)
(254)
(315)
Net repayments
(532)
(487)
(308)
Disposals of loans
(47)
(148)
(10)
Amounts written off
(1,144)
(1,008)
(917)
Exchange and other movements
122
19
(45)
Impaired loans as at end of period
$
5,453
$
4,949
$
3,709
1
2
TABLE 19: ALLOWANCE FOR CREDIT LOSSES
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
January 31
2025
2024
2024
Allowance for loan losses for on-balance sheet loans
Stage 1 allowance for loan losses
$
2,598
$
2,470
$
2,396
Stage 2 allowance for loan losses
4,239
4,082
3,686
Stage 3 allowance for loan losses
1,818
1,542
1,183
Total allowance for loan losses for on-balance sheet loans
1
8,655
8,094
7,265
Allowance for off-balance sheet instruments
Stage 1 allowance for loan losses
398
439
424
Stage 2 allowance for loan losses
535
593
572
Stage 3 allowance for loan losses
6
11
4
Total allowance for off-balance sheet instruments
939
1,043
1,000
Allowance for loan losses
9,594
9,137
8,265
Allowance for debt securities
4
4
3
Allowance for credit losses
$
9,598
$
9,141
$
8,268
Impaired loans, net of allowance
2
$
3,635
$
3,407
$
2,526
Net impaired loans as a percentage of net loans
2
0.38
%
0.36
%
0.28
%
Total allowance for credit losses as a percentage of gross loans and acceptances
0.99
0.95
0.89
Provision for (recovery of) credit losses as a percentage of net average loans and acceptances
0.50
0.47
0.44
1
2
Real Estate Secured Lending
Retail real estate secured lending includes mortgages and lines of credit to North American consumers to satisfy financing needs including home purchases and
refinancing. While the Bank retains first lien on the majority of properties held as security, there is a small portion of loans with second liens, but most of these are
behind a TD mortgage that is in first position. In Canada, credit policies are designed so that the combined exposure of all uninsured facilities on one property does
not exceed 80% of the collateral value at origination. Lending at a higher loan-to-value ratio is permitted by legislation but requires default insurance. This
insurance is contractual coverage for the life of eligible facilities and protects the Bank’s real estate secured lending portfolio against potential losses caused by
borrowers’ default. The Bank may also purchase default insurance on lower loan-to-value ratio loans. The insurance is provided by either government-backed
entities or approved private mortgage insurers. In the U.S., for residential mortgage originations, mortgage insurance is usually obtained from either government-
backed entities or approved private mortgage insurers when the loan-to-value exceeds 80% of the collateral value at origination.
The Bank regularly performs stress tests on its real estate lending portfolio as part of its overall stress testing program. This is done with a view to determine the
extent to which the portfolio would be vulnerable to a severe downturn in economic conditions. The effect of severe changes in house prices, interest rates, and
unemployment levels are among the factors considered when assessing the impact on credit losses and the Bank’s overall profitability. A variety of portfolio
segments, including dwelling type and geographical regions, are examined during the exercise to determine whether specific vulnerabilities exist.
TABLE 20: CANADIAN REAL ESTATE SECURED LENDING
1,2
(millions of Canadian dollars)
As at
Amortizing
Non-amortizing
Total
Residential
Home equity
Total amortizing real
Home equity
mortgages
lines of credit
estate secured lending
lines of credit
January 31, 2025
Total
$
272,838
$
90,010
$
362,848
$
34,198
$
397,046
October 31, 2024
Total
$
273,069
$
89,369
$
362,438
$
33,667
$
396,105
1
allowance is recorded.
2
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 27
TABLE 21: REAL ESTATE SECURED LENDING
1,2
(millions of Canadian dollars, except as noted)
As at
Residential mortgages
Home equity lines of credit
Total
Insured
3
Uninsured
Insured
3
Uninsured
Insured
3
Uninsured
January 31, 2025
Canada
Atlantic provinces
$
2,415
0.9
%
$
4,813
1.8
%
$
151
0.1
%
$
2,281
1.8
%
$
2,566
0.6
%
$
7,094
1.8
%
British Columbia
4
8,186
3.0
48,226
17.7
774
0.6
23,169
18.7
8,960
2.3
71,395
18.0
Ontario
4
21,775
8.0
126,693
46.3
2,624
2.1
68,287
55.0
24,399
6.1
194,980
49.1
Prairies
4
17,472
6.4
22,344
8.2
1,436
1.2
12,591
10.1
18,908
4.8
34,935
8.8
Québec
6,465
2.4
14,449
5.3
483
0.4
12,412
10.0
6,948
1.7
26,861
6.8
Total Canada
56,313
20.7
%
216,525
79.3
%
5,468
4.4
%
118,740
95.6
%
61,781
15.5
%
335,265
84.5
%
United States
1,588
59,677
–
12,212
1,588
71,889
Total
$
57,901
$
276,202
$
5,468
$
130,952
$
63,369
$
407,154
October 31, 2024
Canada
Atlantic provinces
$
2,445
0.9
%
$
4,753
1.7
%
$
158
0.1
%
$
2,207
1.8
%
$
2,603
0.7
%
$
6,960
1.8
%
British Columbia
4
8,311
3.0
48,362
17.7
804
0.7
22,840
18.6
9,115
2.3
71,202
18.0
Ontario
4
21,943
8.1
126,294
46.3
2,734
2.2
67,567
54.9
24,677
6.2
193,861
48.9
Prairies
4
17,685
6.5
22,120
8.1
1,499
1.2
12,459
10.1
19,184
4.8
34,579
8.7
Québec
6,616
2.4
14,540
5.3
509
0.4
12,259
10.0
7,125
1.8
26,799
6.8
Total Canada
57,000
20.9
%
216,069
79.1
%
5,704
4.6
%
117,332
95.4
%
62,704
15.8
%
333,401
84.2
%
United States
1,517
57,063
–
11,525
1,517
68,588
Total
$
58,517
$
273,132
$
5,704
$
128,857
$
64,221
$
401,989
1
2
3
caused by borrower default. It is provided by either government-backed entities or other approved private mortgage insurers.
4
The following table provides a summary of the period over which the Bank’s residential mortgages would be fully repaid based on the amount of the most recent
payment received. All figures are calculated based on current customer payment amounts, including voluntary payments larger than the original contractual
amounts and/or other voluntary prepayments. The most recent customer payment amount may exceed the original contractual amount due.
Balances with a remaining amortization longer than 30 years primarily reflect Canadian variable rate mortgages where prior interest rate increases relative to
current customer payment levels have resulted in a longer current amortization period. At renewal, the amortization period for Canadian mortgages reverts to the
remaining contractual amortization, which may require increased payments.
TABLE 22: RESIDENTIAL MORTGAGES BY REMAINING AMORTIZATION
1,2,3
As at
<=5
>5 – 10
>10 – 15
>15 – 20
>20 – 25
>25 – 30
>30 – 35
>35
years
years
years
years
years
years
years
years
Total
January 31, 2025
Canada
0.8
%
2.8
%
7.1
%
18.9
%
32.9
%
29.4
%
1.2
%
6.9
%
100.0
%
United States
2.2
1.4
3.4
7.6
15.7
68.7
0.5
0.5
100.0
Total
1.0
%
2.6
%
6.4
%
16.8
%
29.7
%
36.8
%
1.0
%
5.7
%
100.0
%
October 31, 2024
Canada
0.8
%
2.7
%
6.4
%
16.8
%
33.3
%
28.9
%
2.4
%
8.7
%
100.0
%
United States
2.3
1.3
3.4
7.6
14.2
70.2
0.5
0.5
100.0
Total
1.0
%
2.5
%
5.9
%
15.1
%
29.9
%
36.2
%
2.1
%
7.3
%
100.0
%
1
2
3
cover the interest based on the rates in effect at January 31, 2025 and October 31, 2024, respectively.
TABLE 23: UNINSURED AVERAGE LOAN-TO-VALUE – Newly Originated and Newly Acquired
1,2,3
For the three months ended
Residential
Home equity
Residential
Home equity
mortgages
lines of credit
4,5
Total
mortgages
lines of credit
4,5
Total
January 31, 2025
October 31, 2024
Canada
Atlantic provinces
69
%
68
%
68
%
69
%
67
%
68
%
British Columbia
6
66
63
64
66
62
65
Ontario
6
67
64
65
67
63
65
Prairies
6
72
70
71
73
69
71
Québec
69
69
69
69
69
69
Total Canada
68
65
66
68
64
66
United States
71
60
67
73
61
68
Total
68
%
65
%
66
%
69
%
64
%
66
%
1
2
3
4
5
6
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 28
Sovereign Risk
The table below provides a summary of the Bank’s direct credit exposures outside of Canada and the U.S. (Europe excludes United Kingdom).
TABLE 24: Total Net Exposure by Region and Counterparty
(millions of Canadian dollars)
As at
Loans and commitments
1
Derivatives, repos, and securities lending
2
Trading and investment portfolio
3
Total
Corporate
Sovereign
Financial
Total
Corporate
Sovereign
Financial
Total
Corporate
Sovereign
Financial
Total
Exposure
4
January 31, 2025
Region
Europe
$
8,467
$
8
$
5,554
$
14,029
$
5,085
$
1,912
$
9,688
$
16,685
$
967
$
24,411
$
2,389
$
27,767
$
58,481
United Kingdom
8,818
2,518
2,714
14,050
3,803
1,234
15,484
20,521
599
931
527
2,057
36,628
Asia
235
26
2,473
2,734
376
598
2,689
3,663
253
9,545
785
10,583
16,980
Other
5
218
–
747
965
329
466
2,785
3,580
83
1,147
2,511
3,741
8,286
Total
$
17,738
$
2,552
$
11,488
$
31,778
$
9,593
$
4,210
$
30,646
$
44,449
$
1,902
$
36,034
$
6,212
$
44,148
$
120,375
October 31, 2024
Region
Europe
$
8,490
$
8
$
5,050
$
13,548
$
4,847
$
2,117
$
8,145
$
15,109
$
1,157
$
24,124
$
2,660
$
27,941
$
56,598
United Kingdom
8,462
3,124
2,661
14,247
3,490
1,172
13,536
18,198
866
1,691
1,104
3,661
36,106
Asia
241
30
2,412
2,683
519
533
2,739
3,791
290
10,486
893
11,669
18,143
Other
5
209
–
598
807
370
416
2,481
3,267
218
1,012
3,187
4,417
8,491
Total
$
17,402
$
3,162
$
10,721
$
31,285
$
9,226
$
4,238
$
26,901
$
40,365
$
2,531
$
37,313
$
7,844
$
47,688
$
119,338
1
2
Association master netting agreement.
3
4
5
CAPITAL POSITION
REGULATORY CAPITAL
Capital requirements established by the Basel Committee on Banking Supervision (BCBS) are commonly referred to as Basel III. Under Basel III,
Total Capital consists of three components, namely CET1, Additional Tier 1, and Tier 2 Capital. Risk sensitive regulatory capital ratios are calculated by dividing
CET1, Tier 1, and Total Capital by risk-weighted assets (RWA), inclusive of any minimum requirements outlined under the regulatory floor. Basel III also
introduced a non-risk sensitive leverage ratio to act as a supplementary measure to the risk-sensitive capital requirements. The leverage ratio is calculated by
dividing Tier 1 Capital by leverage exposure which is primarily comprised of on-balance sheet assets with adjustments made to derivative and securities financing
transaction exposures, and credit equivalent amounts of off-balance sheet exposures. TD manages its regulatory capital in accordance with OSFI’s
implementation of the Basel III Capital Framework.
OSFI’s Capital Requirements under Basel III
OSFI’s CAR and LR guidelines detail how the Basel III capital rules apply to Canadian banks.
The Domestic Stability Buffer (DSB) level increased from 3% to 3.5% as of November 1, 2023. The 50 bps increase reflects OSFI’s view of appropriate actions to
enhance the resilience of Canada’s largest banks. Currently, the DSB can range from 0 to 4%, with the effective level adjusted by OSFI in response to
developments in Canada’s financial system and the broader economy.
On February 1, 2023, OSFI implemented revised capital rules that incorporate the Basel III reforms with adjustments to make them suitable for domestic
implementation. These revised rules include changes to the calculation of credit risk and operational risk requirements, and amendments to the LR Guideline to
include a requirement for domestic systemically important banks (D-SIBs) to hold a leverage ratio buffer of 0.50% in addition to the regulatory minimum
requirement of 3.0%. The LR buffer requirement also applies to the TLAC leverage ratio. On November 1, 2023, OSFI implemented the second and final phase of
the Basel III reforms relating to the calculation of credit valuation adjustment (CVA) and market risk RWA requirements. In addition, effective November 1, 2023,
the regulatory capital floor transitioned to 67.5% of RWA for fiscal 2024 from 65% of RWA in fiscal 2023.
On November 1, 2023, the Bank implemented OSFI’s Parental Stand-Alone (Solo) Total Loss Absorbing Capacity (TLAC) Framework for D-SIBs, which
establishes a risk-based measure intended to ensure that a non-viable D-SIB has sufficient loss absorbing capacity on a stand-alone, legal entity basis to support
its resolution. The Bank is compliant with the requirements set out in this framework.
The table below summarizes OSFI’s published regulatory minimum capital targets for the Bank as at January 31, 2025.
REGULATORY CAPITAL AND TLAC TARGET RATIOS
Capital
Pillar 1
Pillar 1 & 2
Conservation
D-SIB / G-SIB
Regulatory
Regulatory
Minimum
Buffer
Surcharge
1
Target
2
DSB
Target
CET1
4.5
%
2.5
%
1.0
%
8.0
%
3.5
%
11.5
%
Tier 1
6.0
2.5
1.0
9.5
3.5
13.0
Total Capital
8.0
2.5
1.0
11.5
3.5
15.0
Leverage
3.0
n/a
3
0.5
3.5
n/a
3.5
TLAC
18.0
2.5
1.0
21.5
3.5
25.0
TLAC Leverage
6.75
n/a
0.50
7.25
n/a
7.25
1
additional common equity requirement for risk weighted capital. The G-SIB surcharge may increase above 1% if the Bank’s G-SIB score increases above certain thresholds to a maximum
of 4.5%. OSFI’s Leverage Requirements Guideline includes a requirement for D-SIBs to hold a leverage ratio buffer set at 50% of a D-SIB’s higher loss absorbency risk -weighted
requirements, effectively 0.50%. This buffer also applies to the TLAC Leverage ratio.
2
3
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 29
Global Systemically Important Banks Disclosures
The Financial Stability Board (FSB), in consultation with the BCBS and national authorities, identifies G-SIBs. The G-SIB assessment methodology is based on the
submissions of the largest global banks. Thirteen indicators are used in the G-SIB assessment methodology to determine systemic importance. The score for a
particular indicator is calculated by dividing the individual bank value by the aggregate amount for the indicator summed across all banks included in the
assessment. Accordingly, an individual bank’s ranking is reliant on the results and submissions of other global banks.
The Bank is required to publish the thirteen indicators used in the G-SIB indicator-based assessment framework. Public disclosure of financial year-end data is
required annually, no later than the date of a bank’s first quarter public disclosure of shareholder financial data in the following year.
Public communications on G-SIB status are issued annually each November. On November 22, 2019, the Bank was designated as a G-SIB by the FSB. The
Bank continued to maintain its G-SIB status when the FSB published the 2024 list of G-SIBs on November 26, 2024. As a result of this designation, the Bank is
subject to an additional loss absorbency requirement (CET1 as a percentage of RWA) of 1% under applicable FSB member authority requirements. The Bank’s
G-SIB designation has no additional impact on the Bank’s minimum CET1 regulatory requirements, as the G-SIB surcharge is consistent with the D-SIB
requirement set out by OSFI. The G-SIB surcharge may increase above 1% if the Bank’s G-SIB score increases above certain thresholds to a maximum of 4.5%.
Company (IHC), to maintain a minimum amount of TLAC and long-term debt.
bank’s total score on the G-SIB scale.
cash, loans and securities booked in CAD and USD, and increases in deposits payable and debt securities booked in CAD, USD, and Euros. The increase in
Trading Volume was mainly driven by higher North American fixed income trading. The increase in Over-the-Counter Derivatives was due to an increase in interest
rate swaps. Other notable changes in the indicators from the prior year primarily reflect normal business activities of the Bank.
TABLE 25: G-SIB INDICATORS
1
(millions of Canadian dollars)
As at
October 31, 2024
October 31, 2023
Category (and weighting)
Individual Indicator
Cross-jurisdictional activity (20%)
Cross-jurisdictional claims
$
1,100,768
$
1,003,230
Cross-jurisdictional liabilities
1,042,951
964,092
Size (20%)
Total exposures as defined for use in the Basel III leverage ratio
2,228,986
2,112,677
Interconnectedness (20%)
Intra-financial system assets
107,793
109,833
Intra-financial system liabilities
36,477
55,247
Securities outstanding
487,199
470,767
Substitutability/financial institution
Assets under custody
689,698
563,783
infrastructure (20%)
Payments activity
41,073,559
39,499,576
Underwritten transactions in debt and equity markets
211,859
186,110
Trading Volume (includes the two sub indicators)
– Trading volume fixed income sub indicator
12,900,561
9,239,393
– Trading volume equities and other securities sub indicator
2,855,130
2,958,869
Complexity (20%)
Notional amount of OTC derivatives
23,945,530
21,198,657
Trading and other securities
2
72,514
64,944
Level 3 assets
4,663
3,548
1
Requirements. Given the Bank was designated as a G-SIB by the FSB on November 22, 2019, additional public disclosures on these indicators are required. Refer to the Bank’s
Regulatory Capital Disclosures at www.td.com/investor-relations/ir-homepage/regulatory-disclosures/g-sib/disclosures.jsp for these additional disclosures on the 2024 G-SIB indicators.
The Bank is required to submit its G-SIB indicators to OSFI and BCBS for review following the date of this report. In the event that one or both regulators provide comments to the Bank
regarding its submission that would result in changes to the G-SIB indicators listed in the table above, the Bank will publish such revised G-SIB indicators on its website.
2
Includes trading securities, securities designated at FVTPL, and securities at FVOCI.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 30
The following table provides details of the Bank’s regulatory capital position.
TABLE 26: CAPITAL STRUCTURE AND RATIOS – Basel III
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
January 31
2025
2024
2024
Common Equity Tier 1 Capital
Common shares plus related contributed surplus
$
25,679
$
25,543
$
25,428
Retained earnings
71,718
70,826
72,347
Accumulated other comprehensive income
10,520
7,904
3,830
Common Equity Tier 1 Capital before regulatory adjustments
107,917
104,273
101,605
Common Equity Tier 1 Capital regulatory adjustments
Goodwill (net of related tax liability)
(19,359)
(18,645)
(17,922)
Intangibles (net of related tax liability)
(3,041)
(2,921)
(2,654)
Deferred tax assets excluding those arising from temporary differences
(284)
(212)
(198)
Cash flow hedge reserve
2,859
3,015
3,559
Shortfall of provisions to expected losses
–
–
–
Gains and losses due to changes in own credit risk on fair valued liabilities
(191)
(193)
(148)
Defined benefit pension fund net assets (net of related tax liability)
(733)
(731)
(773)
Investment in own shares
(57)
(21)
(20)
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
(1,890)
(1,835)
(2,724)
Significant investments in the common stock of banking, financial, and insurance entities
that are outside the scope of regulatory consolidation, net of eligible short positions
(amount above 10% threshold)
–
–
–
Equity investments in funds subject to the fall-back approach
(35)
(32)
(56)
Other deductions or regulatory adjustments to CET1 as determined by OSFI
18
16
10
Total regulatory adjustments to Common Equity Tier 1 Capital
(22,713)
(21,559)
(20,926)
Common Equity Tier 1 Capital
85,204
82,714
80,679
Additional Tier 1 Capital instruments
Directly issued qualifying Additional Tier 1 instruments plus stock surplus
11,087
10,887
10,830
Additional Tier 1 Capital instruments before regulatory adjustments
11,087
10,887
10,830
Additional Tier 1 Capital instruments regulatory adjustments
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
(2)
(3)
(5)
Significant investments in the capital of banking, financial, and insurance entities that are outside
the scope of regulatory consolidation, net of eligible short positions
(700)
(350)
(350)
Total regulatory adjustments to Additional Tier 1 Capital
(702)
(353)
(355)
Additional Tier 1 Capital
10,385
10,534
10,475
Tier 1 Capital
95,589
93,248
91,154
Tier 2 Capital instruments and provisions
Directly issued qualifying Tier 2 instruments plus related stock surplus
13,471
11,273
9,357
Collective allowances
1,424
1,512
1,781
Tier 2 Capital before regulatory adjustments
14,895
12,785
11,138
Tier 2 regulatory adjustments
Investments in own Tier 2 instruments
–
–
–
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
1
(226)
(224)
(228)
Non-significant investments in the other TLAC-eligible instruments issued by G-SIBs and Canadian
D-SIBs, where the institution does not own more than 10% of the issued common share capital
of the entity: amount previously designated for the 5% threshold but that no longer meets the
conditions
(20)
(64)
(115)
Significant investments in the capital of banking, financial, and insurance entities that are outside
the scope of regulatory consolidation, net of eligible short positions
–
–
(160)
Total regulatory adjustments to Tier 2 Capital
(246)
(288)
(503)
Tier 2 Capital
14,649
12,497
10,635
Total Capital
$
110,238
$
105,745
$
101,789
Risk-weighted assets
$
649,043
$
630,900
$
579,424
Capital Ratios and Multiples
Common Equity Tier 1 Capital (as percentage of risk-weighted assets)
13.1
%
13.1
%
13.9
%
Tier 1 Capital (as percentage of risk-weighted assets)
14.7
14.8
15.7
Total Capital (as percentage of risk-weighted assets)
17.0
16.8
17.6
Leverage ratio
2
4.2
4.2
4.4
1
10% of the issued common share capital of the entity.
2
As at January 31, 2025, the Bank’s CET1, Tier 1, and Total Capital ratios were 13.1%, 14.7%, and 17.0%, respectively. The Bank’s CET1 Capital ratio remained
relatively flat from 13.1% as at October 31, 2024, primarily attributable to internal capital generation, offset by RWA growth across various segments and the
impact of U.S. balance sheet restructuring.
As at January 31, 2025, the Bank’s leverage ratio was 4.2%. The Bank’s leverage ratio remained relatively flat from 4.2% as at October 31, 2024, primarily
attributable to internal capital generation, offset by exposure increases across various segments and the impact of U.S. balance sheet restructuring.
Future Regulatory Capital Developments
Future regulatory capital developments, in addition to those described in the “Future Regulatory Capital Developments” section of the Bank’s 2024 MD&A, are
noted below.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 31
On February 12, 2025, OSFI deferred increases to the Basel III standardized capital floor level until further notice. The capital floor subjects banks using internal
model-based approaches to a floor, where the floor is calculated as a percentage of RWA under the standardized approach. OSFI will notify the Bank at least two
years prior to resuming an increase in the capital floor level.
TABLE 27: EQUITY AND OTHER SECURITIES
1
(millions of shares/units and millions of Canadian dollars, except as noted)
As at
January 31, 2025
October 31, 2024
Number of
Number of
shares/units
Amount
shares/units
Amount
Common shares
Common shares outstanding
1,752.2
$
25,528
1,750.3
$
25,373
Treasury – common shares
(0.5)
(38)
(0.2)
(17)
Total common shares
1,751.7
$
25,490
1,750.1
$
25,356
Stock options
Vested
7.0
5.4
Non-vested
9.3
9.3
Preferred shares – Class A
Series 1
20.0
$
500
20.0
$
500
Series 5
2
–
–
20.0
500
Series 7
14.0
350
14.0
350
Series 9
8.0
200
8.0
200
Series 16
14.0
350
14.0
350
Series 18
14.0
350
14.0
350
Series 27
0.8
850
0.8
850
Series 28
0.8
800
0.8
800
71.6
$
3,400
91.6
$
3,900
Other equity instruments
3,4
Limited Recourse Capital Notes – Series 1
1.8
1,750
1.8
1,750
Limited Recourse Capital Notes – Series 2
1.5
1,500
1.5
1,500
Limited Recourse Capital Notes – Series 3
5
1.7
2,403
1.7
2,403
Limited Recourse Capital Notes – Series 4
5
0.7
1,023
0.7
1,023
Limited Recourse Capital Notes – Series 5
6
0.7
750
–
–
Perpetual Subordinated Capital Notes – Series 2023-9
7
0.1
312
0.1
312
78.1
$
11,138
97.4
$
10,888
Treasury – preferred shares and other equity instruments
(0.5)
(51)
(0.2)
(18)
Total preferred shares and other equity instruments
77.6
$
11,087
97.2
$
10,870
1
2
Series 5 (“Series 5 Preferred Shares”), at a redemption price of $25.00 per Series 5 Preferred Share, for a total redemption cost of approximately $500 million.
3
4
details.
5
6
of 5.909 per cent annually, payable quarterly, for the initial period ending on, but excluding, January 1, 2030. Thereafter, the interest rate on the LRCNs will reset every five years at a
rate equal to the prevailing Government of Canada Yield plus 3.10 per cent. The LRCNs will mature on January 1, 2085. Concurrently with the issuance of the LRCNs, the Bank issued
750,000 Non-Cumulative 5.909% Fixed Rate Reset Preferred Shares, Series 32 NVCC (“Preferred Shares Series 32”). The Preferred Shares Series 32 are eliminated on the Bank’s
Consolidated Financial Statements.
7
DIVIDENDS
On February 26, 2025, the Board approved a dividend in an amount of one dollar and five cents ($1.05) per fully paid common share in the capital stock of the
Bank for the quarter ending April 30, 2025, payable on and after April 30, 2025, to shareholders of record at the close of business on April 10, 2025.
DIVIDEND REINVESTMENT PLAN
The Bank offers a dividend reinvestment plan for its common shareholders. Participation in the plan is optional and under the terms of the plan, cash dividends on
common shares are used to purchase additional common shares. At the option of the Bank, the common shares may be issued from treasury at an average
market price based on the last five trading days before the date of the dividend payment, with a discount of between 0% to 5% at the Bank’s discretion or
purchased from the open market at market price.
During the three months ended January 31, 2025, the Bank issued 1.6 million (three months ended January 31, 2024 – 2.0 million) common shares from
treasury with no discount.
NORMAL COURSE ISSUER BID
On August 28, 2023, the Bank announced that the Toronto Stock Exchange and OSFI approved a normal course issuer bid (NCIB) to repurchase for cancellation
up to 90 million of its common shares. The NCIB commenced on August 31, 2023 and continued until August 31, 2024. From the commencement of the NCIB to
August 31, 2024, the Bank repurchased 71.4 million shares under the program. The NCIB terminated on August 31, 2024 and therefore, there was no repurchase
of common shares by the Bank under the NCIB during the three months ended January 31, 2025. During the three months ended January 31, 2024, the Bank
repurchased 20.9 million common shares, at an average price of $82.39 per share for a total amount of $1.7 billion.
Subsequent to the quarter end, on February 24, 2025, the Bank announced that the Toronto Stock Exchange and OSFI had approved the Bank’s previously
announced NCIB to purchase for cancellation up to 100 million of its common shares. The NCIB will commence on March 3, 2025 and end on February 28, 2026,
or such earlier date as the Bank may determine.
NON-VIABILITY CONTINGENT CAPITAL PROVISION
If an NVCC trigger event were to occur, for all series of Class A First Preferred Shares excluding the preferred shares issued with respect to LRCNs, the
maximum number of common shares that could be issued, assuming there are no declared and unpaid dividends on the respective series of preferred shares at
the time of conversion, would be 0.7 billion in aggregate.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 32
The LRCNs, by virtue of the recourse to the preferred shares held in the Limited Recourse Trust, include NVCC provisions. For LRCNs, if an NVCC trigger were
to occur, the maximum number of common shares that could be issued, assuming there are no declared and unpaid dividends on the preferred shares series
issued in connection with such LRCNs, would be 1.5 billion in aggregate.
For all other NVCC subordinated notes and debentures including Additional Tier 1 Perpetual Notes, if an NVCC trigger event were to occur, the maximum
number of common shares that could be issued, assuming there is no accrued and unpaid interest on the respective subordinated notes and debentures, would be
4.0 billion in aggregate.
RISK FACTORS AND MANAGEMENT
Risk Factors That May Affect Future Results
In addition to the risks described in the “Managing Risk” section of the Bank’s 2024 MD&A and this Report, there are numerous other risk factors, many of which
are beyond the Bank’s control and the effects of which can be difficult to predict, that could cause the Bank’s results to differ significantly from the Bank’s plans,
objectives, and estimates or could impact the Bank’s reputation or the sustainability of its business model. All forward-looking statements, including those in this
MD&A, are, by their very nature, subject to inherent risks and uncertainties, general and specific, which may cause the Bank’s actual results to differ materially
from the plan, objectives, estimates or expectations expressed in the forward-looking statements. Some of these factors are discussed in the “Risk Factors and
Management” section of the 2024 MD&A and in the “Managing Risk” section of this document, and others are noted in the “Caution Regarding Forward-Looking
Statements” section of this document. The Bank has updated the following Risk Factor reflecting developments in the external environment.
Geopolitical Risk
Government policy, international trade and political relations across the globe may impact overall market and economic stability, including in the regions where the
Bank operates, or where its customers operate. While the nature and extent of risks may vary, they have the potential to disrupt global economic growth, create
volatility in financial markets that may affect the Bank’s trading and non-trading activities, market liquidity, funding costs, interest rates, foreign exchange,
commodity prices, credit spreads, fiscal policy, and directly and indirectly influence general business and economic conditions in ways that may have an adverse
impact on the Bank and its customers. Current geopolitical risks include ongoing global tensions resulting in sanctions and countersanctions and related
operational complexities, supply chain disruptions, being subjected to heightened regulatory focus on climate change and transition to a low-carbon economy,
increased likelihood of cyber-attacks on critical public and private infrastructure and networks, the Russia-Ukraine war and the resulting tensions between Russia
and other nations, social unrest and volatility in the Middle East that have escalated due to the ongoing conflict between Israel and Hamas and Hezbollah, political
and economic turmoil, threats of terrorism and ongoing protectionism measures due to a decline in global alignment and elections in geopolitically significant
markets that have potential to generate regulatory and policy uncertainty. The application or potential application of new or elevated tariffs to goods imported into
the United States, and the application or potential application of retaliatory tariffs have amplified these risks and economic uncertainty. Renegotiation of the U.S.-
Mexico-Canada Agreement (USMCA) or tariffs imposed on Canada before its renewal could result in negative impacts for some industries or customers that the
Bank services.
MANAGING RISK
EXECUTIVE SUMMARY
Growing profitability in financial results based on balanced revenue, expense and capital growth services involves selectively taking and managing risks within the
Bank’s risk appetite. The Bank’s goal is to earn a stable and sustainable rate of return for every dollar of risk it takes, while putting significant emphasis on
investing in its businesses to meet its future strategic objectives.
The Bank’s businesses and operations are exposed to a broad number of risks that have been identified and defined in the Enterprise Risk Framework. The
Bank’s tolerance to those risks is defined in the Enterprise Risk Appetite which has been developed within a comprehensive framework that takes into
consideration current conditions in which the Bank operates and the impact that emerging risks will have on TD’s strategy and risk profile. The Bank’s risk appetite
states that it takes risks required to build its business, but only if those risks: (1) fit the business strategy and can be understood and managed; (2) do not expose
the enterprise to any significant single loss events; TD does not ‘bet the bank’ on any single acquisition, business, product or decision; and (3) do not risk harming
the TD brand. Each business is responsible for setting and aligning its individual risk appetites with that of the enterprise based on a thorough examination of the
specific risks to which it is exposed.
The Bank considers it critical to regularly assess its operating environment and highlight top and emerging risks. These are risks with a potential to have a
material effect on the Bank and where the attention of senior leaders is focused due to the potential magnitude or immediacy of their impact.
Risks are identified, discussed, and actioned by senior leaders and reported quarterly to the Risk Committee. Specific plans to mitigate top and emerging risks
are prepared, monitored, and adjusted as required.
The Bank’s risk governance structure and risk management approach have not substantially changed from that described in the Bank’s 2024 MD&A. Additional
information on risk factors can be found in this document and the 2024 MD&A under the heading “Risk Factors and Management”. For a complete discussion of
the risk governance structure and the risk management approach, refer to the “Managing Risk” section in the Bank’s 2024 MD&A.
The shaded sections of this MD&A represent a discussion relating to market and liquidity risks and form an integral part of the Interim Consolidated Financial
Statements for the period ended January 31, 2025.
CREDIT RISK
Gross credit risk exposure, also referred to as exposure at default (EAD), is the total amount the Bank is exposed to at the time of default of a loan and is
measured before counterparty-specific provisions or write-offs. Gross credit risk exposure does not reflect the effects of credit risk mitigation (CRM) and includes
both on-balance sheet and off-balance sheet exposures. On-balance sheet exposures consist primarily of outstanding loans, non-trading securities, derivatives,
and certain other repo-style transactions. Off-balance sheet exposures consist primarily of undrawn commitments, guarantees, and certain other repo-style
transactions.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 33
Gross credit risk exposures for the two approaches the Bank uses to measure credit risk are included in the following table.
TABLE 28: GROSS CREDIT RISK EXPOSURE – Standardized and Internal Ratings-Based (IRB) Approaches
1
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Standardized
IRB
Total
Standardized
IRB
Total
Retail
Residential secured
$
4,383
$
543,043
$
547,426
$
4,163
$
537,075
$
541,238
Qualifying revolving retail
947
176,182
177,129
866
172,203
173,069
Other retail
3,576
107,149
110,725
3,391
104,253
107,644
Total retail
8,906
826,374
835,280
8,420
813,531
821,951
Non-retail
Corporate
2,795
738,573
741,368
2,346
721,156
723,502
Sovereign
165
560,730
560,895
205
588,498
588,703
Bank
3,560
175,598
179,158
4,541
171,250
175,791
Total non-retail
6,520
1,474,901
1,481,421
7,092
1,480,904
1,487,996
Gross credit risk exposures
$
15,426
$
2,301,275
$
2,316,701
$
15,512
$
2,294,435
$
2,309,947
1
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 34
MARKET RISK
Market risk capital is calculated using the Standardized Approach. The Bank continues to use Value-at-Risk (VaR) as an internal management metric to monitor
and control market risk.
Market Risk Linkage to the Balance Sheet
The following table provides a breakdown of the Bank’s balance sheet assets and liabilities exposed to trading and non-trading market risks. Market risk of assets
and liabilities included in the calculation of VaR and metrics used for regulatory market risk capital purposes is classified as trading market risk.
TABLE 29: MARKET RISK LINKAGE TO THE BALANCE SHEET
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Non-trading market
Balance
Trading
Non-trading
Balance
Trading
Non-trading
risk – primary risk
sheet
market risk
market risk
Other
sheet
market risk
market risk
Other
sensitivity
Assets subject to market risk
Interest-bearing deposits with banks
$
136,440
$
1,004
$
135,436
$
–
$
169,930
$
1,601
$
168,329
$
–
Interest rate
Trading loans, securities, and other
198,855
197,301
1,554
–
175,770
174,232
1,538
–
Interest rate
Non-trading financial assets at
fair value through profit or loss
6,810
–
6,810
–
5,869
–
5,869
–
Equity,
foreign exchange,
interest rate
Derivatives
83,885
74,526
9,359
–
78,061
70,636
7,425
–
Equity,
foreign exchange,
interest rate
Financial assets designated at
fair value through profit or loss
6,299
–
6,299
–
6,417
–
6,417
–
Interest rate
Financial assets at fair value through
other comprehensive income
108,691
–
108,691
–
93,897
–
93,897
–
Equity,
foreign exchange,
interest rate
Debt securities at amortized cost,
net of allowance for credit losses
255,743
–
255,743
–
271,615
–
271,615
–
Foreign exchange,
interest rate
Securities purchased under
reverse repurchase agreements
222,119
8,800
213,319
–
208,217
10,488
197,729
–
Interest rate
Loans, net of allowance for
loan losses
965,312
–
965,312
–
949,549
–
949,549
–
Interest rate
Investment in Schwab
9,242
–
9,242
–
9,024
–
9,024
–
Equity
Other assets
1
2,166
–
2,166
–
2,230
–
2,230
–
Interest rate
Assets not exposed to
97,992
–
–
97,992
91,172
–
–
91,172
Total Assets
$
2,093,554
$
281,631
$
1,713,931
$
97,992
$
2,061,751
$
256,957
$
1,713,622
$
91,172
Liabilities subject to market risk
Trading deposits
$
27,198
$
23,702
$
3,496
$
–
$
30,412
$
26,827
$
3,585
$
–
Equity, interest rate
Derivatives
75,017
73,155
1,862
–
68,368
66,976
1,392
–
Equity,
foreign exchange,
interest rate
Securitization liabilities at fair value
21,181
21,181
–
–
20,319
20,319
–
–
Interest rate
Financial liabilities designated at
fair value through profit or loss
210,700
3
210,697
–
207,914
2
207,912
–
Interest rate
Deposits
1,290,486
–
1,290,486
–
1,268,680
–
1,268,680
–
Interest rate,
foreign exchange
Obligations related to securities
sold short
46,086
44,413
1,673
–
39,515
37,812
1,703
–
Interest rate
Obligations related to securities sold
under repurchase agreements
193,856
12,236
181,620
–
201,900
13,540
188,360
–
Interest rate
Securitization liabilities at amortized
cost
12,652
–
12,652
–
12,365
–
12,365
–
Interest rate
Subordinated notes and debentures
13,671
–
13,671
–
11,473
–
11,473
–
Interest rate
Other liabilities
1
34,022
–
34,022
–
34,066
–
34,066
–
Equity, interest rate
Liabilities and Equity not
exposed to market risk
168,685
–
–
168,685
166,739
–
–
166,739
Total Liabilities and Equity
$
2,093,554
$
174,690
$
1,750,179
$
168,685
$
2,061,751
$
165,476
$
1,729,536
$
166,739
1
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 35
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
11/1/2024
11/8/2024
11/15/2024
11/22/2024
11/29/2024
12/6/2024
12/13/2024
12/20/2024
12/30/2024
1/7/2025
1/14/2025
1/21/2025
1/28/2025
TOTAL VALUE-AT-RISK AND TRADING NET REVENUE
(millions of Canadian dollars)
Calculating VaR
The Bank computes total VaR on a daily basis by combining the General Market Risk (GMR) and Idiosyncratic Debt Specific Risk (IDSR) associated with the
Bank’s trading positions.
GMR is determined by creating a distribution of potential changes in the market value of the current portfolio using historical simulation. The Bank values the
current portfolio using the market price and rate changes of the most recent
products. GMR is computed as the threshold level that portfolio losses are not expected to exceed more than
one
one-day
period is used for GMR calculation.
IDSR measures idiosyncratic (single-name) credit spread risk for credit exposures in the trading portfolio using Monte Carlo simulation. The IDSR model is
based on the historical behaviour of five-year idiosyncratic credit spreads. Similar to GMR, IDSR is computed as the threshold level that portfolio losses are not
expected to exceed more than
one
ten-day
The following graph discloses daily one-day VaR usage and trading net revenue, reported on a TEB, within Wholesale Banking. Trading net revenue includes
trading income and net interest income related to positions within the Bank’s market risk capital trading books. For the first quarter ending January 31, 2025,
there were
% of the trading days, reflecting normal trading activity. Losses in the quarter did
not exceed VaR on any trading day.
VaR is a valuable risk measure but it should be used in the context of its limitations, for example:
●
●
●
The Bank continuously improves its VaR methodologies and incorporates new risk measures in line with market conventions, industry best practices, and
regulatory requirements.
To mitigate some of the shortcomings of VaR, the Bank uses additional metrics designed for risk management purposes. This includes Stress Testing as well
as sensitivities to various market risk factors.
The following table presents the end of quarter, average, high, and low usage of TD’s VaR metric.
TABLE 30: PORTFOLIO MARKET RISK MEASURES
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2025
2024
2024
As at
Average
High
Low
Average
Average
Interest rate risk
$
$
$
$
$
$
Credit spread risk
Equity risk
Foreign exchange risk
Commodity risk
Idiosyncratic debt specific risk
Diversification effect
1
(59.0 )
(41.8 )
n/m
2
n/m
(46.0 )
(51.2 )
Total Value-at-Risk (one-day)
1
The aggregate VaR is less than the sum of the VaR of the different risk types due to risk offsets resulting from portfolio diversification.
2
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 36
Average VaR decreased quarter-over-quarter due to changes in fixed income positions, coupled with narrowing credit spreads.
Validation of VaR Model
The Bank uses a back-testing process to compare actual profits and losses to VaR to review their consistency with the statistical results of the VaR model.
Structural (Non-Trading) Interest Rate Risk
The Bank’s structural interest rate risk arises from traditional personal and commercial banking activity and is generally the result of mismatches between the
maturities and repricing dates of the Bank’s assets and liabilities. The measurement of interest rate risk in the banking book does not include exposures from TD’s
Wholesale Banking or Insurance businesses.
The primary measures for managing and controlling this risk are Economic Value of Shareholders’ Equity (EVE) Sensitivity and Net Interest Income Sensitivity
(NIIS).
The EVE Sensitivity measures the change in the net present value of the Bank’s banking book assets, liabilities, and certain off-balance sheet items given a
specific interest rate shock. It reflects a measurement of the potential present value impact on shareholders’ equity without an assumed term profile for the
management of the Bank’s own equity and excludes product margins.
The NIIS measures the net interest income (NII) change over a twelve-month horizon for a specified change in interest rates for banking book assets, liabilities,
and certain off-balance sheet items assuming a constant balance sheet over the period.
The Bank’s Market Risk policy sets overall limits on the structural interest rate risk measures. These limits are periodically reviewed and approved by the Risk
Committee. In addition to the Board policy limits, book-level risk limits are set for the Bank’s management of non-trading interest rate risk by Risk Management.
Exposures against these limits are routinely monitored and reported, and breaches of the Board limits, if any, are escalated to both the Asset Liability and Capital
Committee (ALCO) and the Risk Committee.
The following table shows the potential before-tax impact of an immediate and sustained 100 bps increase or decrease in interest rates on the EVE and NIIS
measures.
TABLE 31: STRUCTURAL INTEREST RATE SENSITIVITY MEASURES
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
January 31, 2024
EVE
NII
EVE
NII
EVE
NII
Sensitivity
Sensitivity
1
Sensitivity
Sensitivity
1
Sensitivity
Sensitivity
1
Canada
U.S.
Total
Canada
U.S.
Total
Total
Total
Total
Total
Before-tax impact of
$
(639 )
$
(1,934 )
$
(2,573 )
$
$
$
$
(2,489 )
$
$
(2,136 )
$
(178 )
(611 )
(789 )
(983 )
(1,152 )
1
Represents the twelve-month NII exposure to an immediate and sustained shock in rates.
As at January 31, 2025, an immediate and sustained 100 bps increase in interest rates would have had a negative impact to the Bank’s EVE of $
increase of $
sustained 100 bps decrease in interest rates would have had a positive impact to the Bank’s EVE of $
and a negative impact to the Bank’s NII of $
attributed in part to FX translation combined with a marginal increase in net fixed rate assets held. The quarter-over-quarter decrease in NII Sensitivity is primarily
due to additional hedging within the quarter.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 37
Liquidity Risk
The risk of having insufficient cash or collateral to meet financial obligations and an inability to, in a timely manner, raise funding or monetize assets at a non-
distressed price. Financial obligations can arise from deposit withdrawals, debt maturities, commitments to provide credit or liquidity support or the need to pledge
additional collateral.
TD’S LIQUIDITY RISK APPETITE
The Bank follows a disciplined liquidity management program that is subject to risk governance and oversight, and designed to maintain sufficient liquidity to permit
the Bank to operate through a significant liquidity event without relying on extraordinary central bank assistance. The Bank seeks to maintain a stable and
diversified funding profile that emphasizes funding assets and contingencies to the appropriate term.
The Bank manages liquidity risk using a combination of quantitative and qualitative measures with the objective of ensuring it has sufficient liquidity to satisfy its
operational needs and client commitments in both normal and stress conditions. The Bank maintains buffers over regulatory minimums prescribed by OSFI’s
Liquidity Adequacy Requirements (LAR) Guideline. The Bank targets a 90-day survival horizon under a combined bank-specific and market-wide stress scenario,
and minimum surpluses over prescribed regulatory requirements. The Bank’s funding program emphasizes maximizing deposits as a core source of funding and
having ready access to wholesale funding markets across diversified terms, funding types, and currencies. This approach helps lower exposure to a sudden
contraction of wholesale funding capacity and minimizes structural liquidity gaps. The Bank also maintains a Contingency Funding Plan (CFP) to enhance
preparedness for addressing potential liquidity stress events. The Bank’s strategies, plans and governance practices underpin an integrated liquidity risk
management program that is designed to reduce exposure to liquidity risk and maintain compliance with regulatory requirements.
LIQUIDITY RISK MANAGEMENT RESPONSIBILITY
The Bank’s ALCO is responsible for establishing effective management structures and practices to ensure appropriate measurement, management, and
governance of liquidity risk. The Global Liquidity & Funding (GLF) Committee, a subcommittee of the ALCO comprised of senior management from Treasury,
Wholesale Banking and Risk Management, identifies and monitors the Bank’s liquidity risks. The management of liquidity risk is the responsibility of the Senior
Executive Team member responsible for Treasury, while oversight and challenge are provided by the ALCO and independently by Risk Management. The Risk
Committee regularly reviews the Bank’s liquidity position and approves the Bank’s Liquidity Risk Management Framework biennially and the related policies
annually.
The Bank’s liquidity risk appetite and liquidity risk management approach have not substantially changed from that described in the Bank’s 2024 MD&A. For a
complete discussion of liquidity risk, refer to the “Liquidity Risk” section in the Bank’s 2024 MD&A.
Liquid assets
The Bank’s unencumbered liquid assets may be used to help address potential liquidity requirements arising from stress events. Liquid asset eligibility considers
estimated in-stress market values and trading market depths, as well as operational, legal, or other impediments to sale, rehypothecation or pledging.
Assets held by the Bank to meet liquidity requirements are summarized in the following tables. The tables do not include assets held within the Bank’s insurance
businesses as these are used to support insurance-specific liabilities and capital requirements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 38
TABLE 32: SUMMARY OF LIQUID ASSETS BY TYPE AND CURRENCY
(millions of Canadian dollars, except as noted)
As at
Securities
received as
collateral from
securities
financing and
Bank-owned
derivative
Total
Encumbered
Unencumbered
liquid assets
transactions
liquid assets
liquid assets
liquid assets
1
January 31, 2025
Cash and central bank reserves
$
$
$
$
$
Canadian government obligations
National Housing Act Mortgage-Backed
Securities (NHA MBS)
Obligations of provincial governments, public sector entities
and multilateral development banks
Corporate issuer obligations
Equities
Total Canadian dollar-denominated
Cash and central bank reserves
U.S. government obligations
U.S. federal agency obligations, including U.S.
federal agency mortgage-backed obligations
Obligations of other sovereigns, public sector entities
and multilateral development banks
Corporate issuer obligations
Equities
Total non-Canadian dollar-denominated
Total
$
$
$
$
$
October 31, 2024
Total Canadian dollar -denominated
$
$
$
$
$
Total non-Canadian dollar-denominated
Total
$
$
$
$
$
1
Unencumbered liquid assets include on-balance sheet assets, assets borrowed or purchased under resale agreements, and other off-balance sheet collateral received less encumbered
liquid assets.
Total unencumbered liquid assets increased modestly by $
activity.
Unencumbered liquid assets held in The Toronto-Dominion Bank and multiple domestic and foreign subsidiaries (excluding insurance subsidiaries) and branches
are summarized in the following table.
TABLE 33: SUMMARY OF UNENCUMBERED LIQUID ASSETS BY BANK, SUBSIDIARIES, AND BRANCHES
(millions of Canadian dollars)
As at
January 31
October 31
2025
2024
The Toronto-Dominion Bank (Parent)
$
$
Bank subsidiaries
Foreign branches
Total
$
$
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 39
The Bank’s monthly average liquid assets (excluding those held in insurance subsidiaries) for the quarters ended January 31, 2025 and October 31, 2024, are
summarized in the following table.
TABLE 34: SUMMARY OF AVERAGE LIQUID ASSETS BY TYPE AND CURRENCY
(millions of Canadian dollars, except as noted)
Average for the three months ended
Securities
received as
collateral from
securities
financing and
Total
Bank-owned
derivative
liquid
Encumbered
Unencumbered
liquid assets
transactions
assets
liquid assets
liquid assets
1
January 31, 2025
Cash and central bank reserves
$
39,022
$
–
$
39,022
$
1,020
$
38,002
Canadian government obligations
21,579
84,200
105,779
51,850
53,929
NHA MBS
40,733
96
40,829
2,181
38,648
Obligations of provincial governments, public sector
entities and multilateral development banks
42,277
26,714
68,991
36,677
32,314
Corporate issuer obligations
4,530
6,991
11,521
7,509
4,012
Equities
14,549
5,311
19,860
16,194
3,666
Total Canadian dollar-denominated
162,690
123,312
286,002
115,431
170,571
Cash and central bank reserves
100,443
–
100,443
243
100,200
U.S. government obligations
84,116
71,330
155,446
70,499
84,947
U.S. federal agency obligations, including U.S.
federal agency mortgage-backed obligations
77,191
14,793
91,984
29,573
62,411
Obligations of other sovereigns, public sector entities and
multilateral development banks
66,954
45,230
112,184
47,979
64,205
Corporate issuer obligations
71,359
17,348
88,707
30,763
57,944
Equities
61,987
39,901
101,888
58,747
43,141
Total non-Canadian dollar-denominated
462,050
188,602
650,652
237,804
412,848
Total
$
624,740
$
311,914
$
936,654
$
353,235
$
583,419
October 31, 2024
Total Canadian dollar-denominated
$
159,673
$
116,945
$
276,618
$
108,093
$
168,525
Total non-Canadian dollar-denominated
461,866
173,757
635,623
240,453
395,170
Total
$
621,539
$
290,702
$
912,241
$
348,546
$
563,695
1
liquid assets.
Average unencumbered liquid assets held in The Toronto-Dominion Bank and multiple domestic and foreign subsidiaries (excluding insurance subsidiaries) and
branches are summarized in the following table.
TABLE 35: SUMMARY OF AVERAGE UNENCUMBERED LIQUID ASSETS BY BANK, SUBSIDIARIES, AND BRANCHES
(millions of Canadian dollars)
Average for the three months ended
January 31
October 31
2025
2024
The Toronto-Dominion Bank (Parent)
$
231,628
$
223,581
Bank subsidiaries
322,355
310,596
Foreign branches
29,436
29,518
Total
$
583,419
$
563,695
ASSET ENCUMBRANCE
In the course of the Bank’s daily operations, assets are pledged to obtain funding, support trading and brokerage businesses, and participate in clearing and/or
settlement systems.
A summary of on- and off-balance sheet encumbered and unencumbered assets (excluding assets held in insurance subsidiaries) is
presented as follows.
TABLE 36: ENCUMBERED AND UNENCUMBERED ASSETS
(millions of Canadian dollars)
As at
Total Assets
Encumbered
Unencumbered
Total
Pledged as
Available as
Assets
Collateral
1
Other
2
Collateral
3
Other
4
January 31, 2025
Cash and due from banks
$
6,552
$
–
$
–
$
–
$
6,552
Interest-bearing deposits with banks
136,440
6,145
–
125,772
4,523
Securities, trading loans, and other
969,472
425,367
21,630
490,393
32,082
Derivatives
83,885
–
–
–
83,885
Loans, net of allowance for loan losses
946,056
88,942
104,665
41,043
711,406
Other assets
5
102,848
292
–
–
102,556
Total assets
$
2,245,253
$
520,746
$
126,295
$
657,208
$
941,004
October 31, 2024
Total assets
$
2,202,763
$
509,319
$
113,528
$
635,491
$
944,425
1
with participation in clearing houses and payment systems.
2
3
eligible collateral at FHLB.
4
5
brokers, dealers, and clients, and other assets on the balance sheet not reported in the above categories.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 40
LIQUIDITY STRESS TESTING AND CONTINGENCY FUNDING PLANS
In addition to the Bank’s internal liquidity stress metric, the Bank performs liquidity stress testing on multiple alternate scenarios. These scenarios consist of a mix
of TD-specific and market-wide stress events designed to evaluate the potential impact of risk factors material to the Bank’s risk profile. Liquidity assessments are
also part of the Bank’s EWST program.
The Bank has designed CFPs for the enterprise and material subsidiaries operating in foreign jurisdictions. As they provide a
playbook for managing stressed liquidity conditions, these plans are an integral component of the Bank’s overall liquidity risk management framework. The CFPs
outline different contingency levels based on the severity and duration of the liquidity situation and identify recovery actions appropriate for each level. To support
operational readiness, CFPs provide key steps required to implement each recovery action. Regional CFPs identify recovery actions to address region-specific
stress events. The actions and governance structure outlined in the Bank’s CFP are aligned with the Bank’s Crisis Management Recovery Plan.
CREDIT RATINGS
Credit ratings may impact the Bank’s access to, and cost of, raising funding and its ability to engage in certain business activities on a cost-effective basis. Credit
ratings and outlooks provided by rating agencies reflect their views and methodologies and are subject to change based on a number of factors including the
Bank’s financial strength, competitive position, and liquidity, as well as factors not entirely within the Bank’s control, including conditions affecting the overall
financial services industry.
TABLE 37: CREDIT RATINGS
1
As at
January 31, 2025
Moody’s
S&P
Fitch
DBRS
Deposits/Counterparty
2
Aa2
A+
AA
AA (high)
Legacy Senior Debt
3
Aa3
A+
AA
AA (high)
Senior Debt
4
A2
A-
AA-
AA
Covered Bonds
Aaa
–
AAA
AAA
Legacy Subordinated Debt – non-NVCC
A3
A-
A
AA (low)
Tier 2 Subordinated Debt – NVCC
A3 (hyb)
BBB+
A
A
AT1 Perpetual Debt – NVCC
Baa2 (hyb)
BBB-
BBB+
–
Limited Recourse Capital Notes – NVCC
Baa2 (hyb)
BBB-
BBB+
A (low)
Preferred Shares – NVCC
Baa2 (hyb)
BBB-
BBB+
Pfd-2 (high)
Short-Term Debt (Deposits)
P-1
A-1
F1+
R-1 (high)
Outlook
Stable
Stable
Negative
Negative (Long Term);
Stable (Short Term)
1
recommendations to purchase, sell, or hold a financial obligation in as much as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision
or withdrawal at any time by the rating organization.
2
3
4
The Bank regularly reviews the level of increased collateral its trading counterparties would require in the event of a downgrade of TD’s credit rating. The following
table presents the additional collateral that could have been contractually required to be posted to over-the-counter (OTC) derivative counterparties as of the
reporting date in the event of one, two, and three-notch downgrades of the Bank’s credit ratings.
TABLE 38: ADDITIONAL COLLATERAL REQUIREMENTS FOR RATING DOWNGRADES
1
(millions of Canadian dollars)
Average for the three months ended
January 31
October 31
2025
2024
One-notch downgrade
$
83
$
78
Two-notch downgrade
772
505
Three-notch downgrade
3,028
1,334
1
LIQUIDITY COVERAGE RATIO
The LCR is a Basel III standard that aims to ensure that an institution has an adequate stock of unencumbered high-quality liquid assets (HQLA), consisting of
cash or assets that could be converted into cash to meet its liquidity needs for a 30-calendar day liquidity stress scenario.
Other than during periods of financial stress, the Bank must maintain the LCR above 100% in accordance with the published OSFI LAR requirement. The
Bank’s LCR is calculated according to the scenario parameters in the LAR guideline, including prescribed HQLA eligibility criteria and haircuts, deposit run-off
rates, and other outflow and inflow rates. HQLA held by the Bank that are eligible for the LCR under the LAR are primarily central bank reserves, sovereign-issued
or sovereign-guaranteed securities, and high-quality securities issued by non-financial entities.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 41
The following table summarizes the Bank’s average daily LCR as of the relevant dates.
TABLE 39: AVERAGE LIQUIDITY COVERAGE RATIO
1
(millions of Canadian dollars, except as noted)
Average for the three months ended
January 31, 2025
Total unweighted
Total weighted
value (average)
2
value (average)
3
High-quality liquid assets
Total high-quality liquid assets
$
n/a
4
$
381,731
Cash outflows
Retail deposits and deposits from small business customers, of which:
$
506,165
$
32,523
Stable deposits
271,520
8,146
Less stable deposits
234,645
24,377
Unsecured wholesale funding, of which:
392,739
198,078
Operational deposits (all counterparties) and deposits in networks of cooperative banks
137,010
32,351
Non-operational deposits (all counterparties)
235,903
145,901
Unsecured debt
19,826
19,826
Secured wholesale funding
n/a
46,318
Additional requirements, of which:
377,502
121,146
Outflows related to derivative exposures and other collateral requirements
71,480
60,025
Outflows related to loss of funding on debt products
9,906
9,906
Credit and liquidity facilities
296,116
51,215
Other contractual funding obligations
17,851
9,844
Other contingent funding obligations
856,826
12,957
Total cash outflows
$
n/a
$
420,866
Cash inflows
Secured lending
$
237,223
$
40,346
Inflows from fully performing exposures
26,150
12,518
Other cash inflows
97,961
97,961
Total cash inflows
$
361,334
$
150,825
Average for the three months ended
January 31, 2025
October 31, 2024
Total adjusted
Total adjusted
value
value
Total high-quality liquid assets
$
381,731
$
361,452
Total net cash outflows
270,041
261,900
Liquidity coverage ratio
141
%
138
%
1
January 31, 2025 is calculated as an average of the 62 daily data points in the quarter.
2
3
4
The Bank’s average LCR was 141% for the quarter ended January 31, 2025 and continues to meet regulatory requirements.
The Bank holds a variety of liquid assets commensurate with its liquidity needs. Most of these liquid assets also qualify as HQLA under the OSFI LAR guideline.
LCR is expected to normalize as the Bank is beginning to target more typical LCR levels. However, the Bank expects LCR to remain elevated in the near-term
reflecting proceeds from sale of Schwab equity investment
13
. The average HQLA of the Bank for the quarter ended January 31, 2025 was $382 billion (October 31,
2024 – $361 billion), with Level 1 assets representing 86% (October 31, 2024 – 86%). The Bank’s reported HQLA excludes excess HQLA from U.S. Retail
operations, as required by the OSFI LAR guideline, to reflect liquidity transfer considerations between U.S. Retail and its affiliates as a result of the U.S. Federal
Reserve Board’s regulations. By excluding excess HQLA, the U.S. Retail LCR is effectively capped at 100% prior to total Bank consolidation.
As described in the “How TD Manages Liquidity Risk” section of the Bank’s 2024 MD&A, the Bank manages its HQLA and other liquidity buffers to the higher of
TD’s internal 90-day surplus requirement and its target buffers over regulatory requirements including those for LCR, NSFR, and the Net Cumulative Cash Flow
metrics.
NET STABLE FUNDING RATIO
The NSFR is a Basel III metric calculated as the ratio of total available stable funding (ASF) over total required stable funding (RSF) in accordance with OSFI’s
LAR guideline. The Bank must maintain an NSFR equal to or above 100% as required by LAR. The Bank’s ASF comprises the Bank’s liability and capital
instruments (including deposits and wholesale funding). The assets that require stable funding are based on the Bank’s on and off-balance sheet activities and a
function of their liquidity characteristics and the requirements of OSFI’s LAR guideline.
13
The Bank’s expectations regarding liquidity levels are based on the Bank’s assumptions regarding certain factors, including product growth, strategic plans, pace of share repurchases
under the Bank’s normal course issuer bid (which is subject to regulatory approval, financial forecasts and capital requirements). The Bank’s assumptions are subject to inherent
uncertainties and may vary based on factors both within and outside the Bank’s control, including general market conditions, economic outlooks and geopolitical matters. Refer to the
“Risk Factors That May Affect Future Results” section of this document for additional information about risks and uncertainties that may impact the Bank’s estimates.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 42
TABLE 40: NET STABLE FUNDING RATIO
1
(millions of Canadian dollars, except as noted)
As at
January 31, 2025
Unweighted value by residual maturity
6 months to
No
Less than
less than
More than
Weighted
maturity
2
6 months
1 year
1 year
value
3
Available Stable Funding Item
Capital
$
115,431
$
n/a
$
n/a
$
13,353
$
128,783
Regulatory capital
115,431
n/a
n/a
13,353
128,783
Other capital instruments
n/a
n/a
n/a
–
–
Retail deposits and deposits from small business customers:
464,436
77,099
37,205
31,283
566,927
Stable deposits
260,709
30,109
15,372
15,736
306,616
Less stable deposits
203,727
46,990
21,833
15,547
260,311
Wholesale funding:
261,876
418,652
96,190
244,205
469,079
Operational deposits
109,451
2,113
1
–
55,782
Other wholesale funding
152,425
416,539
96,189
244,205
413,297
Liabilities with matching interdependent assets
4
–
2,260
1,740
29,010
–
Other liabilities:
56,907
83,532
2,291
NSFR derivative liabilities
n/a
1,786
All other liabilities and equity not included in the above categories
56,907
78,380
2,150
1,216
2,291
Total Available Stable Funding
$
1,167,080
Required Stable Funding Item
Total NSFR high-quality liquid assets
$
$
$
$
$
61,200
Deposits held at other financial institutions for operational purposes
–
–
–
–
–
Performing loans and securities
114,833
268,173
119,272
684,248
791,519
Performing loans to financial institutions secured by Level 1 HQLA
–
69,088
7,919
–
9,280
Performing loans to financial institutions secured by non-Level 1
HQLA and unsecured performing loans to financial institutions
–
73,138
8,899
10,562
22,900
Performing loans to non-financial corporate clients, loans to retail
and small business customers, and loans to sovereigns, central
banks and PSEs, of which:
39,391
67,531
48,423
300,528
350,384
With a risk weight of less than or equal to 35% under the Basel II
standardized approach for credit risk
n/a
–
–
–
–
Performing residential mortgages, of which:
34,065
48,848
51,410
307,523
311,222
With a risk weight of less than or equal to 35% under the Basel II
standardized approach for credit risk
34,065
48,848
51,410
307,523
311,222
Securities that are not in default and do not qualify as HQLA,
including exchange-traded equities
41,377
9,568
2,621
65,635
97,733
Assets with matching interdependent liabilities
4
–
2,289
2,758
27,964
–
Other assets:
84,097
131,733
125,606
Physical traded commodities, including gold
15,343
13,443
Assets posted as initial margin for derivative contracts and
contributions to default funds of CCPs
18,209
15,477
NSFR derivative assets
11,688
9,901
NSFR derivative liabilities before deduction of variation margin
posted
18,890
945
All other assets not included in the above categories
68,754
74,025
1,570
7,351
85,840
Off-balance sheet items
859,769
31,250
Total Required Stable Funding
$
1,009,575
Net Stable Funding Ratio
116
%
As at
October 31, 2024
Total Available Stable Funding
$
1,154,060
Total Required Stable Funding
994,567
Net Stable Funding Ratio
116
%
1
2
positions, open maturity positions, non-HQLA equities, and physical traded commodities.
3
4
asset is still on balance sheet, cannot be used to fund any other assets and principal payments from the asset cannot be used for anything other than repaying the liability. As such, the
only interdependent assets and liabilities that qualify for this treatment at the Bank are the liabilities arising from the Canada Mortgage Bonds Program and their corresponding
encumbered assets.
The Bank’s NSFR for the quarter ended January 31, 2025 is 116% (October 31, 2024 – 116%) representing a surplus of $158 billion and adherence to regulatory
requirements. The ratio is unchanged as increases in deposits were offset by growth in assets.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 43
FUNDING
The Bank has access to a variety of unsecured and secured funding sources. The Bank’s funding activities are conducted in accordance with liquidity risk
management policies that require assets be funded to the appropriate term and to a prudent diversification profile.
The Bank’s primary approach to managing funding activities is to maximize the use of deposits raised through its personal and commercial banking channels.
The Bank’s base of personal and commercial, wealth, and Schwab sweep deposits make up approximately
% (October 31, 2024 –
%) of the Bank’s total
funding.
TABLE 41: SUMMARY OF DEPOSIT FUNDING
(millions of Canadian dollars)
As at
January 31
October 31
2025
2024
P&C deposits – Canadian
$
$
P&C deposits – U.S.
1
Total
$
$
1
P&C deposits in U.S. are presented on a Canadian equivalent basis and therefore period-over-period movements reflect both underlying growth and changes in the foreign exchange
rate.
WHOLESALE FUNDING
The Bank maintains various registered external wholesale term (greater than 1 year) funding programs to provide access to diversified funding sources, including
asset securitization, covered bonds, and unsecured wholesale debt. The Bank raises term funding through Senior Notes, NHA MBS, notes backed by credit card
receivables (Evergreen Credit Card Trust) and home equity lines of credit (Genesis Trust II). The Bank’s wholesale funding is diversified by geography, currency,
and funding types. The Bank raises short-term (1 year or less) funding using certificates of deposit, commercial paper, and up until June 28, 2024, bankers’
acceptances.
The following table summarizes the registered term funding and capital programs by geography, with the related program size as at January 31, 2025.
Canada
United States
Europe
Capital Securities Program ($20 billion)
Canadian Senior Medium-Term Linked Notes
Program ($5 billion)
HELOC ABS Program (Genesis Trust II) ($7 billion)
U.S. SEC (F-3) Registered Capital and Debt
Program (US$75 billion)
U.K. Financial Conduct Authority (FCA) Registered
Legislative Covered Bond Program ($100 billion)
FCA Registered Global Medium-Term Note Program
(US$40 billion)
The following table presents a breakdown of the Bank’s term debt by currency and funding type. Term funding as at January 31, 2025, was $189.7 billion (October
31, 2024 – 184.5 billion).
Note that Table 42: Long-Term Funding and Table 43: Wholesale Funding do not include any funding accessed via repurchase transactions or securities financing.
TABLE 42: LONG-TERM FUNDING
1
As at
January 31
October 31
Long-term funding by currency
2025
2024
Canadian dollar
25
%
25
%
U.S. dollar
35
31
Euro
30
33
British pound
5
5
Other
5
6
Total
100
%
100
%
Long-term funding by type
Senior unsecured medium-term notes
52
%
51
%
Covered bonds
40
40
Mortgage securitization
2
7
7
Term asset-backed securities
1
2
Total
100
%
100
%
1
The table includes funding issued to external investors only.
2
Mortgage securitization excludes the residential mortgage trading business.
The Bank maintains depositor concentration limits in respect of short-term wholesale deposits so that it is not overly reliant on individual depositors for funding.
The Bank further limits short-term wholesale funding maturity concentration in an effort to mitigate refinancing risk during a stress event.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 44
The following table represents the remaining maturity of various sources of funding outstanding as at January 31, 2025 and October 31, 2024.
TABLE 43: WHOLESALE FUNDING
(millions of Canadian dollars)
As at
January 31
October 31
2025
2024
Less than
1 to 3
3 to 6
6 months
Up to 1
Over 1 to
Over
1 month
months
months
to 1 year
year
2 years
2 years
Total
Total
Deposits from banks
1
$
308
$
146
$
210
$
396
$
1,060
$
–
$
–
$
1,060
$
1,856
Bearer deposit notes
43
520
222
762
1,547
–
–
1,547
787
Certificates of deposit
7,273
24,686
27,326
41,597
100,882
156
–
101,038
101,168
Commercial paper
7,288
18,724
16,649
16,605
59,266
508
–
59,774
60,339
Covered bonds
–
1,800
10,332
144
12,276
22,232
40,813
75,321
75,399
Mortgage securitization
2
64
1,100
1,141
2,008
4,313
4,430
25,091
33,834
32,684
Legacy senior unsecured medium-term
notes
3
–
–
–
110
110
99
–
209
88
Senior unsecured medium-term notes
4
–
1,750
5,840
11,764
19,354
19,516
59,002
97,872
93,157
Subordinated notes and debentures
5
–
–
200
–
200
–
13,471
13,671
11,473
Term asset-backed securitization
871
1,764
3,985
4,560
11,180
1,273
1,788
14,241
9,604
Other
6
31,592
1,815
18,643
7,995
60,045
832
2,160
63,037
70,951
Total
$
47,439
$
52,305
$
84,548
$
85,941
$
270,233
$
49,046
$
142,325
$
461,604
$
457,506
Of which:
Secured
$
6,378
$
4,664
$
32,513
$
13,970
$
57,525
$
27,935
$
67,696
$
153,156
$
153,855
Unsecured
41,061
47,641
52,035
71,971
212,708
21,111
74,629
308,448
303,651
Total
$
47,439
$
52,305
$
84,548
$
85,941
$
270,233
$
49,046
$
142,325
$
461,604
$
457,506
1
2
3
including debt with an original term-to-maturity of less than 400 days.
4
regime (October 31, 2024 – $4.4 billion).
5
6
Includes fixed-term deposits from non-bank institutions (unsecured) of $17.0 billion (October 31, 2024 – $17.3 billion) and the remaining are non-term deposits.
Excluding the Wholesale Banking residential mortgage trading business, the Bank’s total mortgage-backed securities issued to external investors for the three
months ended January 31, 2025, was $1.0 billion (three months ended January 31, 2024 – $0.2 billion) and other asset-backed securities issued for the three
months ended January 31, 2025, was $0.2 billion (three months ended January 31, 2024 – nil). Total unsecured medium-term notes and covered bond issuances
for the three months ended January 31, 2025, were $10.8 billion and nil respectively (three months ended January 31, 2024 – $0.7 billion and $4.7 billion).
MATURITY ANALYSIS OF ASSETS, LIABILITIES, AND OFF-BALANCE SHEET COMMITMENTS
The following table summarizes on-balance sheet and off-balance sheet categories by remaining contractual maturity. Off-balance sheet commitments include
contractual obligations to make future payments on certain lease-related commitments, certain purchase obligations, and other liabilities. The values of credit
instruments reported in the following table represent the maximum amount of additional credit that the Bank could be obligated to extend should such instruments
be fully drawn or utilized. Since a significant portion of guarantees and commitments are expected to expire without being drawn upon, the total of the contractual
amounts is not representative of expected future liquidity requirements. These contractual obligations have an impact on the Bank’s short-term and long-term
liquidity and capital resource needs.
The maturity analysis presented does not depict the degree of the Bank’s maturity transformation or the Bank’s exposure to interest rate and liquidity risk. The
Bank’s objective is to fund its assets appropriately to protect against borrowing cost volatility and potential reductions to funding market availability. The Bank
utilizes stable non-maturity deposits (chequing and savings accounts) and term deposits as the primary source of long-term funding for the Bank’s non-trading
assets including personal and business term loans and the stable balance of revolving lines of credit. Additionally, the Bank issues long-term funding in respect of
such non-trading assets and raises short term funding primarily to finance trading assets. The liquidity of trading assets under stressed market conditions is
considered when determining the appropriate term of the funding.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 45
TABLE 44: REMAINING CONTRACTUAL MATURITY
(millions of Canadian dollars)
As at
January 31, 2025
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
$
$
$
$
$
$
$
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
1
Non-trading financial assets at fair
value through profit or loss
Derivatives
Financial assets designated at fair
value through profit or loss
Financial assets at fair value through
other comprehensive income
Debt securities at amortized cost,
net of allowances for credit losses
(4 )
Securities purchased under
reverse repurchase agreements
2
Loans
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Total loans
Allowance for loan losses
(8,654 )
(8,654 )
Loans, net of allowance for loan losses
Investment in Schwab
Goodwill
3
Other intangibles
3
Land, buildings, equipment, and other depreciable
assets, and right-of-use assets
3
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
$
$
$
$
$
$
$
$
Liabilities
Trading deposits
$
$
$
$
$
$
$
$
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at
fair value through profit or loss
Deposits
4,5
Personal
Banks
Business and government
Total deposits
Obligations related to securities sold short
1
Obligations related to securities sold under repurchase
agreements
2
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance contract liabilities
Other liabilities
Subordinated notes and debentures
Equity
Total liabilities and equity
$
$
$
$
$
$
$
$
$
$
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
$
$
$
$
$
$
$
$
$
Other commitments
8
Unconsolidated structured entity commitments
Total off-balance sheet commitments
$
$
$
$
$
$
$
$
$
$
1
Amount has been recorded according to the remaining contractual maturity of the underlying security.
2
3
4
5
$
6
7
8
.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 46
TABLE 44: REMAINING CONTRACTUAL MATURITY
(continued)
(millions of Canadian dollars)
As at
October 31, 2024
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
$
$
$
$
$
$
$
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
1
Non-trading financial assets at fair value through
profit or loss
Derivatives
Financial assets designated at fair value through
profit or loss
Financial assets at fair value through other comprehensive
income
Debt securities at amortized cost, net of allowance
for credit losses
(3 )
Securities purchased under reverse repurchase
agreements
2
Loans
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Total loans
Allowance for loan losses
(8,094 )
(8,094 )
Loans, net of allowance for loan losses
Investment in Schwab
Goodwill
3
Other intangibles
3
Land, buildings, equipment, other depreciable
assets, and right-of-use assets
3
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
$
$
$
$
$
$
$
$
Liabilities
Trading deposits
$
$
$
$
$
$
$
$
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at
fair value through profit or loss
Deposits
4,5
Personal
Banks
Business and government
Total deposits
Obligations related to securities sold short
1
Obligations related to securities sold under repurchase
agreements
2
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance-related liabilities
Other liabilities
Subordinated notes and debentures
Equity
Total liabilities and equity
$
$
$
$
$
$
$
$
$
$
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
$
$
$
$
$
$
$
$
$
Other commitments
8
Unconsolidated structured entity commitments
Total off-balance sheet commitments
$
$
$
$
$
$
$
$
$
$
1
Amount has been recorded according to the remaining contractual maturity of the underlying security.
2
3
4
5
2 years’, $
6
7
8
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 47
ISSB – IFRS S1 and IFRS S2
On June 26, 2023, the International Sustainability Standards Board (ISSB) under the IFRS Foundation, issued its first two sustainability standards, IFRS S1
General Requirements for Disclosures of Sustainability-related Financial Information
Climate-related Disclosures
. IFRS S1 sets out the disclosure
requirements for financially material information about sustainability-related risks and opportunities to meet investor information needs, and IFRS S2 specifically
sets the disclosure requirements for Climate-related risks and opportunities. On December 18, 2024, the Canadian Sustainability Standards Board (CSSB)
released its Canadian Sustainability Disclosure Standards (CSDS), CSDS 1,
General Requirements for Disclosure of Sustainability-related Financial Information
,
and CSDS 2,
Climate-related Disclosures
, which largely align to IFRS S1 and S2 while providing some additional reliefs on transition. On the same date, the
Canadian Securities Administrators (CSA) reiterated its work on a climate-related disclosure rule and its intention to initially adopt provisions necessary to support
climate-related disclosures. To become a regulatory requirement in Canada, the CSSB Standards would need to be incorporated into a CSA rule. The Bank is
currently assessing the impact of adopting these standards and monitoring developments from the CSA.
SECURITIZATION AND OFF-BALANCE SHEET ARRANGEMENTS
The Bank enters into securitization and off-balance sheet arrangements in the normal course of operations. The Bank is involved with structured entities (SEs) that
it sponsors, as well as entities sponsored by third parties. Refer to “Securitization and Off-Balance Sheet Arrangements” section, Note 9: Transfers of Financial
Assets and Note 10: Structured Entities of the Bank’s 2024 Annual Report for further details. There have been no significant changes to the Bank’s securitization
and off-balance sheet arrangements during the quarter ended January 31, 2025.
Securitization of Third-Party Originated Assets
Significant Unconsolidated Special Purpose Entities
The Bank securitizes third-party originated assets through Bank-sponsored SEs, including its Canadian multi-seller conduits which are not consolidated. These
Canadian multi-seller conduits securitize Canadian originated third-party assets. The Bank administers these multi-seller conduits and provides liquidity facilities as
well as securities distribution services; it may also provide credit enhancements. TD’s total potential exposure to loss through the provision of liquidity facilities for
multi-seller conduits was $17.9 billion as at January 31, 2025 (October 31, 2024 – $16.8 billion). As at January 31, 2025, the Bank had funded exposure of
$16.3 billion under such liquidity facilities relating to outstanding issuances of asset-backed commercial paper (October 31, 2024 – $15.4 billion).
ACCOUNTING POLICIES AND ESTIMATES
The Bank’s unaudited Interim Consolidated Financial Statements have been prepared in accordance with IFRS. For details of the Bank’s accounting policies under
IFRS, refer to Note 2 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements and 2024 Annual Consolidated Financial Statements. For details
of the Bank’s significant accounting judgments, estimates, and assumptions under IFRS, refer to Note 3 of the Bank’s first quarter 2025 Interim Consolidated
Financial Statements and the Bank’s 2024 Annual Consolidated Financial Statements.
CURRENT CHANGES IN ACCOUNTING POLICIES
There were no new accounting policies adopted by the Bank for the three months ended January 31, 2025.
ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS
The estimates used in the Bank’s accounting policies are essential to understanding its results of operations and financial condition. Some of the Bank’s policies
require subjective, complex judgments and estimates as they relate to matters that are inherently uncertain. Changes in these judgments or estimates and
changes to accounting standards and policies could have a materially adverse impact on the Bank’s Interim Consolidated Financial Statements. The Bank has
established procedures to ensure that accounting policies are applied consistently and that the processes for changing methodologies, determining estimates, and
adopting new accounting standards are well-controlled and occur in an appropriate and systematic manner.
Impairment – Expected Credit Loss Model
The ECL model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking economic environment.
There remains elevated economic uncertainty, and management continues to exercise expert credit judgment in assessing if an exposure has experienced
significant increase in credit risk since initial recognition and in determining the amount of ECLs at each reporting date. To the extent that certain effects are not
fully incorporated into the model calculations, temporary quantitative and qualitative adjustments have been applied, including for risks related to elevated
uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future quarters.
FUTURE CHANGES IN ACCOUNTING POLICIES
There were no new accounting standards or amendments issued during the three months ended January 31, 2025. Refer to Note 2 of the Bank’s 2024 Annual
Consolidated Financial Statements for a description of future changes in accounting policies.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
During the most recent interim period, there have been no changes in the Bank’s policies and procedures and other processes that comprise its internal control
over financial reporting, that have materially affected, or are reasonably likely to materially affect, the Bank’s internal control over financial reporting. Refer to
Note 2 and Note 3 of the Bank’s first quarter 2025 Interim Consolidated Financial Statements for further information regarding the Bank’s changes to accounting
policies, procedures, and estimates.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 48
GLOSSARY
Financial and Banking Terms
Adjusted Results:
Bank’s businesses and to measure the Bank’s overall performance. To arrive at
adjusted results, the Bank adjusts for “items of note”, from reported results. The
items of note relate to items which management does not believe are indicative
of underlying business performance.
Allowance for Credit Losses:
financial assets, including any off-balance sheet exposures, at the balance
sheet date. Allowance for credit losses consists of Stage 3 allowance for
impaired financial assets and Stage 2 and Stage 1 allowance for performing
financial assets and off-balance sheet instruments. The allowance is increased
by the provision for credit losses, decreased by write-offs net of recoveries and
disposals, and impacted by foreign exchange.
Amortized Cost:
measured at initial recognition minus principal repayments, plus or minus the
cumulative amortization, using EIRM, of any differences between the initial
amount and the maturity amount, and minus any reduction for impairment.
Assets under Administration (AUA):
customers where the Bank provides services of an administrative nature, such
as the collection of investment income and the placing of trades on behalf of the
clients (where the client has made his or her own investment selection). The
majority of these assets are not reported on the Bank’s Consolidated Balance
Sheet.
Assets under Management (AUM):
customers, managed by the Bank, where the Bank has discretion to make
investment selections on behalf of the client (in accordance with an investment
policy). In addition to the TD family of mutual funds, the Bank manages assets
on behalf of individuals, pension funds, corporations, institutions, endowments
and foundations. These assets are not reported on the Bank’s Consolidated
Balance Sheet. Some assets under management that are also administered by
the Bank are included in assets under administration.
Asset-Backed Commercial Paper (ABCP):
collateralized by other financial assets. Institutional investors usually purchase
such instruments in order to diversify their assets and generate short-term
gains.
Asset-Backed Securities (ABS):
payments are derived from and collateralized (or “backed”) by a specified pool
of underlying assets.
Average Common Equity:
Average common equity for the business segments
reflects the average allocated capital. The Bank’s methodology for allocating
capital to its business segments is largely aligned with the common equity
capital requirements under Basel III.
Average Interest-Earning Assets:
the Bank’s financial position, and is calculated as the average carrying value of
deposits with banks, loans and securities based on daily balances for the period
ending October 31 in each fiscal year.
Basic Earnings per Share (EPS)
: A performance measure calculated by
dividing net income attributable to common shareholders by the weighted
average number of common shares outstanding for the period. Adjusted basic
EPS is calculated in the same manner using adjusted net income.
Basis Points (bps):
100 basis points.
Book Value per Share:
shareholders’ equity by number of common shares at the end of the period.
Carrying Value:
Consolidated Balance Sheet.
Catastrophe Claims:
occurred in the period, for which the aggregate insurance claims are equal to
or greater than an internal threshold of $5 million before reinsurance. The
Bank’s internal threshold may change from time to time.
Collateralized Mortgage Obligation (CMO):
obligations consisting of mortgage-backed securities that are separated and
issued as different classes of mortgage pass-through securities with different
terms, interest rates, and risks. CMOs by private issuers are collectively
referred to as non-agency CMOs.
Common Equity Tier 1 (CET1) Capital:
This is a primary Basel III capital
measure comprised mainly of common equity, retained earnings and qualifying
non-controlling interest in subsidiaries. Regulatory deductions made to arrive
at the CET1 Capital include goodwill and intangibles, unconsolidated
investments in banking, financial, and insurance entities, deferred tax assets,
defined benefit pension fund assets, and shortfalls in allowances.
Common Equity Tier 1 (CET1) Capital Ratio:
CET1 Capital ratio represents
the predominant measure of capital adequacy under Basel III
and equals CET1 Capital divided by RWA.
Compound Annual Growth Rate (CAGR):
time periods from the initial investment value to the ending investment value
assuming that the investment has been compounding over the time period.
Credit Valuation Adjustment (CVA):
CVA represents a capital charge that
measures credit risk due to default of derivative counterparties. This charge
requires banks to capitalize for the potential changes in counterparty credit
spread for the derivative portfolios.
Diluted EPS:
attributable to common shareholders by the weighted average number of
common shares outstanding adjusting for the effect of all potentially dilutive
common shares. Adjusted diluted EPS is calculated in the same manner using
adjusted net income.
Dividend Payout Ratio:
being paid to common shareholders in the form of dividends and is calculated
by dividing common dividends by net income available to common
shareholders. Adjusted dividend payout ratio is calculated in the same manner
using adjusted net income.
Dividend Yield:
year divided by the daily average closing stock price during the year.
Effective Income Tax Rate:
A rate and performance indicator calculated by
dividing the provision for income taxes as a percentage of net income before
taxes. Adjusted effective income tax rate is calculated in the same manner
using adjusted results.
Effective Interest Rate (EIR):
flows for the expected life of the financial instrument to its carrying value. The
calculation takes into account the contractual interest rate, along with any fees
or incremental costs that are directly attributable to the instrument and all other
premiums or discounts.
Effective Interest Rate Method (EIRM):
interest rate in a period based on the amount of a financial instrument’s book
value at the beginning of the accounting period. Under EIRM, the effective
interest rate, which is a key component of the calculation, discounts the
expected future cash inflows and outflows expected over the life of a financial
instrument.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 49
Efficiency Ratio:
calculated by taking the non-interest expenses as a percentage of total revenue.
A lower ratio indicates a more efficient business operation. Adjusted efficiency
ratio is calculated in the same manner using adjusted non-interest expenses
and total revenue.
Enhanced Disclosure Task Force (EDTF):
Established by the Financial
Stability Board in May 2012, comprised of banks, analysts, investors, and
auditors, with the goal of enhancing the risk disclosures of banks and other
financial institutions.
Expected Credit Losses (ECLs):
ECLs are the probability-weighted present
value of expected cash shortfalls over the remaining expected life of the
financial instrument and considers reasonable and supportable information
about past events, current conditions, and forecasts of future events and
economic conditions that impact the Bank’s credit risk assessment.
Fair Value:
a liability in an orderly transaction between market participants at the
measurement date, under current market conditions.
Fair value through other comprehensive income (FVOCI):
Under IFRS 9, if
the asset passes the contractual cash flows test (named SPPI), the business
model assessment determines how the instrument is classified. If the instrument
is being held to collect contractual cash flows, that is, if it is not expected to be
sold, it is measured as amortized cost. If the business model for the instrument
is to both collect contractual cash flows and potentially sell the asset, it is
measured at FVOCI.
Fair value through profit or loss (FVTPL):
Under IFRS 9, the classification is
dependent on two tests, a contractual cash flow test (named SPPI) and a
business model assessment. Unless the asset meets the requirements of both
tests, it is measured at fair value with all changes in fair value reported in profit
or loss.
Federal Deposit Insurance Corporation (FDIC):
A U.S. government
corporation which provides deposit insurance guaranteeing the safety of a
depositor’s accounts in member banks. The FDIC also examines and
supervises certain financial institutions for safety and soundness, performs
certain consumer-protection functions, and manages banks in receiverships
(failed banks).
Forward Contracts:
one party to the contract to buy and the other party to sell an asset for a fixed
price at a future date.
Futures:
price on a specified future date.
Hedging:
exposure to fluctuations in interest rates, foreign currency exchange rates, or
other market factors. The elimination or reduction of such exposure is
accomplished by engaging in capital markets activities to establish offsetting
positions.
Impaired Loans:
deterioration of credit quality to the extent that the Bank no longer has
reasonable assurance as to the timely collection of the full amount of principal
and interest.
Loss Given Default (LGD):
incur when a borrower defaults on a loan, which is expressed as a percentage
of exposure at default.
Mark-to-Market (MTM):
balance sheet date for financial instruments that are carried at fair value.
Master Netting Agreements:
multiple derivative contracts with each other that provide for the net settlement
of all contracts through a single payment, in a single currency, in the event of
default or termination of any one contract.
Net Corporate Expenses:
Non-interest expenses related to corporate service
and control groups which are not allocated to a business segment.
Net Interest Margin:
percentage of average interest-earning assets to measure performance. This
metric is an indicator of the profitability of the Bank’s earning assets less the
cost of funding. Adjusted net interest margin is calculated in the same manner
using adjusted net interest income.
Non-Viability Contingent Capital (NVCC):
Instruments (preferred shares and
subordinated debt) that contain a feature or a provision that allows the financial
institution to either permanently convert these instruments into common shares
or fully write-down the instrument, in the event that the institution is no longer
viable.
Notional:
instruments are based.
Office of the Superintendent of Financial Institutions Canada (OSFI):
The
regulator of Canadian federally chartered financial institutions and federally
administered pension plans.
Options:
right, but not the obligation, to buy or to sell a security, exchange rate, interest
rate, or other financial instrument or commodity at a predetermined price at or
by a specified future date.
Price-Earnings Ratio:
EPS based on a trailing four quarters to indicate market performance. Adjusted
price-earnings ratio is calculated in the same manner using adjusted EPS.
Probability of Default (PD):
to meet its scheduled repayments.
Provision for Credit Losses (PCL):
losses to bring it to a level that management considers adequate to reflect
expected credit-related losses on its portfolio.
Return on Common Equity (ROE):
as net income available to common shareholders as a percentage of average
common shareholders’ equity, utilized in assessing the Bank’s use of equity.
ROE for the business segments is calculated as the segment net income
attributable to common shareholders as a percentage of average allocated
capital. Adjusted ROE is calculated in the same manner using adjusted net
income.
Return on Risk-weighted Assets:
Net income available to common
shareholders as a percentage of average risk-weighted assets.
Return on Tangible Common Equity (ROTCE):
measure calculated as reported net income available to common shareholders
after adjusting for the after-tax amortization of acquired intangibles, which are
treated as an item of note, as a percentage of average Tangible common
equity. Adjusted ROTCE is calculated in the same manner using adjusted net
income. Both measures can be utilized in assessing the Bank’s use of equity.
Risk-Weighted Assets (RWA):
Assets calculated by applying a regulatory
risk-weight factor to on and off-balance sheet exposures. The risk-weight
factors are established by the OSFI to convert on and off-balance sheet
exposures to a comparable risk level.
Securitization:
transferred to structures, which normally issue a series of asset-backed
securities to investors to fund the purchase of loans.
Solely Payments of Principal and Interest (SPPI):
a financial asset that are consistent with a basic lending arrangement.
Swaps:
payment obligations and currencies on a notional principal for a specified
period of time.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 50
Tangible common equity (TCE):
common shareholders’ equity less goodwill, imputed goodwill, and intangibles
on an investment in Schwab and TD Ameritrade and other acquired intangible
assets, net of related deferred tax liabilities. It can be utilized in assessing the
Bank’s use of equity.
Taxable Equivalent Basis (TEB):
that increases revenues and the provision for income taxes on certain tax-
exempt securities to an equivalent before-tax basis to facilitate comparison of
net interest income from both taxable and tax-exempt sources.
Tier 1 Capital Ratio:
capital, consisting primarily of common shareholders’ equity, retained earnings,
preferred shares and innovative instruments. Tier 1 Capital ratio is calculated as
Tier 1 Capital divided by RWA.
Total Capital Ratio:
Capital. Total Capital ratio is calculated as Total Capital divided by RWA.
Total Shareholder Return (TSR):
TD’s common shares. The return measures the change in shareholder value,
assuming dividends paid are reinvested in additional shares.
Trading-Related Revenue:
trading income (loss), net interest income on trading positions, and income from
financial instruments designated at FVTPL that are managed within a trading
portfolio. Trading-related revenue (TEB) in the Wholesale Banking segment is
also a non-GAAP financial measure and is calculated in the same manner,
including TEB adjustments. Both are used for measuring trading performance.
Value-at-Risk (VaR):
and to calculate the regulatory capital required for market risk in trading
activities. VaR measures the adverse impact that potential changes in market
rates and prices could have on the value of a portfolio over a specified period of
time.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 51
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
INTERIM CONSOLIDATED BALANCE SHEET
(unaudited)
(As at and in millions of Canadian dollars)
January 31, 2025
October 31, 2024
ASSETS
Cash and due from banks
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
Non-trading financial assets at fair value through profit or loss
Derivatives
Financial assets designated at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Debt securities at amortized cost, net of allowance for credit losses (Notes 4, 5)
Securities purchased under reverse repurchase agreements
Loans (Notes 4, 6)
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Allowance for loan losses
(8,654 )
(8,094 )
Loans, net of allowance for loan losses
Other
Investment in Schwab
Goodwill
Other intangibles
Land, buildings, equipment, other depreciable assets and right-of-use assets
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
LIABILITIES
Trading deposits
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at fair value through profit or loss
Deposits (Notes 4, 9)
Personal
Banks
Business and government
Other
Obligations related to securities sold short
Obligations related to securities sold under repurchase agreements
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance contract liabilities
Other liabilities
Subordinated notes and debentures (Notes 4, 11)
Total liabilities
EQUITY
Shareholders’ Equity
Common shares
Preferred shares and other equity instruments
Treasury – common shares
(38 )
(17 )
Treasury – preferred shares and other equity instruments
(51 )
(18 )
Contributed surplus
Retained earnings
Accumulated other comprehensive income (loss)
Total equity
Total liabilities and equity
$
$
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 52
INTERIM CONSOLIDATED STATEMENT OF INCOME (LOSS)
(unaudited)
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2025
2024
Interest income
1
Loans
$
$
Reverse repurchase agreements
Securities
Interest
Dividends
Deposits with banks
Interest expense (Note 19)
Deposits
Securitization liabilities
Subordinated notes and debentures
Repurchase agreements and short sales
Other
Net interest income
Non-interest income
Investment and securities services
Credit fees
Trading income (loss)
Service charges
Card services
Insurance revenue
Other income (loss)
(884 )
(105 )
Total revenue
Provision for (recovery of) credit losses (Note 6)
Insurance service expenses
Non-interest expenses
Salaries and employee benefits
Occupancy, including depreciation
Technology and equipment, including depreciation
Amortization of other intangibles
Communication and marketing
Restructuring charges
Brokerage-related and sub-advisory fees
Professional, advisory and outside services
Other
Income before income taxes and share of net income from investment
in Schwab
Provision for (recovery of) income taxes
Share of net income from investment in Schwab (Note 7)
Net income (loss)
Preferred dividends and distributions on other equity instruments
Net income (loss) attributable to common shareholders
$
$
Earnings (loss) per share
Basic
$
$
Diluted
Dividends per common share
1
interest rate method (EIRM).
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 53
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2025
2024
Net income
$
$
Other comprehensive income (loss)
Items that will be subsequently reclassified to net income
Net change in unrealized gain/(loss) on financial assets at fair value
through other comprehensive income
Change in unrealized gain/(loss)
Reclassification to earnings of net loss/(gain)
(6 )
Changes in allowance for credit losses recognized in earnings
(1 )
(1 )
Income taxes relating to:
Change in unrealized gain/(loss)
(35 )
(85 )
Reclassification to earnings of net loss/(gain)
Net change in unrealized foreign currency translation gain/(loss) on
investments in foreign operations, net of hedging activities
Unrealized gain/(loss)
(3,883 )
Net gain/(loss) on hedges
(3,576 )
Income taxes relating to:
Net gain/(loss) on hedges
(676 )
(2,127 )
Net change in gain/(loss) on derivatives designated as cash flow hedges
Change in gain/(loss)
Reclassification to earnings of loss/(gain)
(1,184 )
Income taxes relating to:
Change in gain/(loss)
(381 )
(89 )
Reclassification to earnings of loss/(gain)
(658 )
Share of other comprehensive income (loss) from investment in Schwab
(338 )
Items that will not be subsequently reclassified to net income
Remeasurement gain/(loss) on employee benefit plans
Gain/(loss)
(227 )
Income taxes
(5 )
(164 )
Change in net unrealized gain/(loss) on equity securities designated at
fair value through other comprehensive income
Change in net unrealized gain/(loss)
Income taxes
(3 )
(54 )
Gain/(loss) from changes in fair value due to own credit risk on
financial liabilities designated at fair value through profit or loss
Gain/(loss)
(10 )
(54 )
Income taxes
(7 )
(39 )
Total other comprehensive income (loss)
Total comprehensive income (loss)
$
$
Attributable to:
Common shareholders
$
$
Preferred shareholders and other equity instrument holders
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 54
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited)
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Common shares (Note 12)
Balance at beginning of period
$
$
Proceeds from shares issued on exercise of stock options
Shares issued as a result of dividend reinvestment plan
Purchase of shares for cancellation and other
(295 )
Balance at end of period
Preferred shares and other equity instruments (Note 12)
Balance at beginning of period
Issuance of shares and other equity instruments
Redemption of shares and other equity instruments
(500 )
Balance at end of period
Treasury – common shares (Note 12)
Balance at beginning of period
(17 )
(64 )
Purchase of shares
(3,504 )
(3,096 )
Sale of shares
Balance at end of period
(38 )
(58 )
Treasury – preferred shares and other equity instruments (Note 12)
Balance at beginning of period
(18 )
(65 )
Purchase of shares and other equity instruments
(1,120 )
(98 )
Sale of shares and other equity instruments
Balance at end of period
(51 )
(27 )
Contributed surplus
Balance at beginning of period
Net premium (discount) on sale of treasury instruments
(12 )
Issuance of stock options, net of options exercised
Other
(3 )
(1 )
Balance at end of period
Retained earnings
Balance at beginning of period
Impact of reclassification of securities supporting insurance operations
related to the adoption of IFRS 17
1
(10 )
Net income attributable to equity instrument holders
Common dividends
(1,836 )
(1,807 )
Preferred dividends and distributions on other equity instruments
(86 )
(74 )
Share and other equity instrument issue expenses
(2 )
Net premium on repurchase of common shares and redemption of preferred shares and other
equity instruments
(1,428 )
Remeasurement gain/(loss) on employee benefit plans
(164 )
Realized gain/(loss) on equity securities designated at fair value through
other comprehensive income
(2 )
Balance at end of period
Accumulated other comprehensive income (loss)
Net unrealized gain/(loss) on financial assets at fair value through other comprehensive income:
Balance at beginning of period
(208 )
(413 )
Impact of reclassification of securities supporting insurance operations
related to the adoption of IFRS 17
1
Other comprehensive income (loss)
Allowance for credit losses
(1 )
(1 )
Balance at end of period
(99 )
(163 )
Net unrealized gain/(loss) on equity securities designated at fair value through
other comprehensive income:
Balance at beginning of period
(127 )
Other comprehensive income (loss)
Reclassification of loss/(gain) to retained earnings
(5 )
Balance at end of period
Gain/(loss) from changes in fair value due to own credit risk on financial liabilities
designated at fair value through profit or loss:
Balance at beginning of period
(22 )
(38 )
Other comprehensive income (loss)
(7 )
(39 )
Balance at end of period
(29 )
(77 )
Net unrealized foreign currency translation gain/(loss) on investments in foreign
operations, net of hedging activities:
Balance at beginning of period
Other comprehensive income (loss)
(2,127 )
Balance at end of period
Net gain/(loss) on derivatives designated as cash flow hedges:
Balance at beginning of period
(2,924 )
(5,472 )
Other comprehensive income (loss)
Balance at end of period
(2,719 )
(3,504 )
Share of accumulated other comprehensive income (loss) from investment in Schwab
(2,208 )
(2,995 )
Total accumulated other comprehensive income
Total equity
$
$
1
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 55
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2025
2024
Cash flows from (used in) operating activities
Net income
$
$
Adjustments to determine net cash flows from (used in) operating activities
Provision for (recovery of) credit losses
Depreciation
Amortization of other intangibles
Net securities loss/(gain)
(6 )
Share of net income from investment in Schwab
(231 )
(141 )
Deferred taxes
(70 )
(67 )
Changes in operating assets and liabilities
Interest receivable and payable
(237 )
Securities sold under repurchase agreements
(8,044 )
Securities purchased under reverse repurchase agreements
(13,902 )
Securities sold short
(1,786 )
Trading loans, securities, and other
(23,085 )
(9,430 )
Loans net of securitization and sales
(17,124 )
(9,413 )
Deposits
(17,282 )
Derivatives
Non-trading financial assets at fair value through profit or loss
(941 )
Financial assets and liabilities designated at fair value through profit or loss
(12,170 )
Securitization liabilities
Current taxes
(1,581 )
Brokers, dealers, and clients amounts receivable and payable
(3,979 )
(1,214 )
Other, including unrealized foreign currency translation loss/(gain)
(16,583 )
Net cash from (used in) operating activities
(50,279 )
(20,112 )
Cash flows from (used in) financing activities
Issuance of subordinated notes and debentures
Redemption or repurchase of subordinated notes and debentures
(67 )
(24 )
Common shares issued, net of issuance costs
Repurchase of common shares, including tax on net value of share repurchases
(1,723 )
Preferred shares and other equity instruments issued, net of issuance costs
Redemption of preferred shares and other equity instruments
(500 )
Sale of treasury shares and other equity instruments
Purchase of treasury shares and other equity instruments
(4,624 )
(3,194 )
Dividends paid on shares and distributions paid on other equity instruments
(1,792 )
(1,744 )
Repayment of lease liabilities
(169 )
(167 )
Net cash from (used in) financing activities
(3,564 )
Cash flows from (used in) investing activities
Interest-bearing deposits with banks
Activities in financial assets at fair value through other comprehensive income
Purchases
(20,977 )
(7,301 )
Proceeds from maturities
Proceeds from sales
Activities in debt securities at amortized cost
Purchases
(7,133 )
(3,238 )
Proceeds from maturities
Proceeds from sales
Net purchases of land, buildings, equipment, other depreciable assets, and other intangibles
(497 )
(471 )
Net cash acquired from divestitures
Net cash from (used in) investing activities
Effect of exchange rate changes on cash and due from banks
(159 )
Net increase (decrease) in cash and due from banks
(388 )
Cash and due from banks at beginning of period
Cash and due from banks at end of period
$
$
Supplementary disclosure of cash flows from operating activities
Amount of income taxes paid (refunded) during the period
$
$
Amount of interest paid during the period
Amount of interest received during the period
Amount of dividends received during the period
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 56
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 1: NATURE OF OPERATIONS
CORPORATE INFORMATION
The Toronto-Dominion Bank is a bank chartered under the
Bank Act (Canada)
. The shareholders of a bank are not, as shareholders, liable for any liability, act, or
default of the bank except as otherwise provided under the
Bank Act (Canada)
. The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group (“TD” or the “Bank”). The Bank was formed through the amalgamation on February 1, 1955, of The Bank of Toronto (chartered in 1855) and The
Dominion Bank (chartered in 1869). The Bank is incorporated and domiciled in Canada with its registered and principal business offices located at 66 Wellington
Street West, Toronto, Ontario. TD serves customers in four business segments operating in a number of locations in key financial centres around the globe:
Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking.
BASIS OF PREPARATION
The accompanying Interim Consolidated Financial Statements and accounting principles followed by the Bank have been prepared in accordance with
International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), including the accounting requirements of
the Office of the Superintendent of Financial Institutions Canada (OSFI). The Interim Consolidated Financial Statements are presented in Canadian dollars, unless
otherwise indicated.
These Interim Consolidated Financial Statements were prepared on a condensed basis in accordance with International Accounting Standard 34,
Interim
Financial Reporting
amounts have been revised to conform with the presentation adopted in the current period.
The preparation of the Interim Consolidated Financial Statements requires that management make judgments, estimates, and assumptions regarding the
reported amount of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities, as further described in Note 3 of the Bank’s 2024
Annual Consolidated Financial Statements and in Note 3 of this report. Accordingly, actual results may differ from estimated amounts as future confirming events
occur.
The Bank’s Interim Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar
circumstances. All intercompany transactions, balances, and unrealized gains and losses on transactions are eliminated on consolidation.
The Interim Consolidated Financial Statements for the three months ended January 31, 2025, were approved and authorized for issue by the Bank’s Board of
Directors, in accordance with a recommendation of the Audit Committee, on February 26, 2025.
As the Interim Consolidated Financial Statements do not include all of the disclosures normally provided in the Annual Consolidated Financial Statements, they
should be read in conjunction with the Bank’s 2024 Annual Consolidated Financial Statements and the accompanying Notes, and the shaded sections of the 2024
Management’s Discussion and Analysis (MD&A). The risk management policies and procedures of the Bank are provided in the MD&A. The shaded sections of
the “Managing Risk” section of the MD&A in this report, relating to market, liquidity, and insurance risks, are an integral part of these Interim Consolidated Financial
Statements, as permitted by IFRS.
NOTE 2: CURRENT AND FUTURE CHANGES IN ACCOUNTING POLICIES
CURRENT CHANGES IN ACCOUNTING POLICIES
There were no new accounting policies adopted by the Bank for the three months ended January 31, 2025.
FUTURE CHANGES IN ACCOUNTING POLICIES
There were no new accounting standards or amendments issued during the three months ended January 31, 2025. Refer to Note 2 of the Bank’s 2024 Annual
Consolidated Financial Statements for a description of future changes in accounting policies.
NOTE 3: SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS
The estimates used in the Bank’s accounting policies are essential to understanding its results of operations and financial condition. Some of the Bank’s policies
require subjective, complex judgments and estimates as they relate to matters that are inherently uncertain. Changes in these judgments or estimates and
changes to accounting standards and policies could have a materially adverse impact on the Bank’s Interim Consolidated Financial Statements. The Bank has
established procedures to ensure that accounting policies are applied consistently and that the processes for changing methodologies, determining estimates, and
adopting new accounting standards are well-controlled and occur in an appropriate and systematic manner. Refer to Note 3 of the Bank’s 2024 Annual
Consolidated Financial Statements for a description of significant accounting judgments, estimates, and assumptions.
Impairment – Expected Credit Loss Model
The expected credit loss (ECL) model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking
economic environment. There remains elevated economic uncertainty, and management continues to exercise expert credit judgment in assessing if an exposure
has experienced significant increase in credit risk since initial recognition and in determining the amount of ECLs at each reporting date. To the extent that certain
effects are not fully incorporated into the model calculations, temporary quantitative and qualitative adjustments have been applied, including for risks related to
elevated uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future quarters.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 57
NOTE 4: FAIR VALUE MEASUREMENTS
There have been no significant changes to the Bank’s approach and methodologies used to determine fair value measurements for the three months ended
January 31, 2025.
(a)
The following table reflects the fair value of the Bank’s financial assets and liabilities not carried at fair value.
Financial Assets and Liabilities not carried at Fair Value
1
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Carrying
Fair
Carrying
Fair
value
value
value
value
FINANCIAL ASSETS
Debt securities at amortized cost, net of allowance for credit losses
Government and government-related securities
$
$
$
$
Other debt securities
Total debt securities at amortized cost, net of allowance for credit losses
Total loans, net of allowance for loan losses
Total financial assets not carried at fair value
$
$
$
$
FINANCIAL LIABILITIES
Deposits
$
$
$
$
Securitization liabilities at amortized cost
Subordinated notes and debentures
Total financial liabilities not carried at fair value
$
$
$
$
1
This table excludes financial assets and liabilities where the carrying value approximates their fair value.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 58
(b)
FAIR VALUE HIERARCHY
The following table presents the levels within the fair value hierarchy for each of the assets and liabilities measured at fair value on a recurring basis as at
January 31, 2025 and October 31, 2024.
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS AND COMMODITIES
Trading loans, securities, and other
1
Government and government-related securities
Canadian government debt
Federal
$
$
$
$
$
$
$
$
Provinces
U.S. federal, state, municipal governments,
Other OECD
2
Mortgage-backed securities
Other debt securities
Canadian issuers
Other issuers
Equity securities
Trading loans
Commodities
Retained interests
Non-trading financial assets at fair value
through profit or loss
Securities
Loans
Derivatives
Interest rate contracts
Foreign exchange contracts
Credit contracts
Equity contracts
Commodity contracts
Financial assets designated at
fair value through profit or loss
Securities
1
Financial assets at fair value through other
comprehensive income
Government and government-related securities
Canadian government debt
Federal
Provinces
U.S. federal, state, municipal governments,
Other OECD government-guaranteed debt
Mortgage-backed securities
Other debt securities
Asset-backed securities
Corporate and other debt
Equity securities
Loans
Securities purchased under reverse
repurchase agreements
FINANCIAL LIABILITIES
Trading deposits
Derivatives
Interest rate contracts
Foreign exchange contracts
Credit contracts
Equity contracts
Commodity contracts
Securitization liabilities at fair value
Financial liabilities designated at fair value
through profit or loss
Obligations related to securities sold short
1
Obligations related to securities sold
under repurchase agreements
1
Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
2
Organisation for Economic Co-operation and Development (OECD).
(c)
The Bank’s policy is to record transfers of assets and liabilities between the different levels of the fair value hierarchy using the fair values as at the end of each
reporting period.
There were no significant transfers between Level 1 and Level 2 during the three months ended January 31, 2025 and January 31, 2024.
There were no significant transfers between Level 2 and Level 3 during the three months ended January 31, 2025 and January 31, 2024.
There were no significant changes to the unobservable inputs and sensitivities for assets and liabilities classified as Level 3 during the three months ended
January 31, 2025, and January 31, 2024.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 59
(d)
RECONCILIATION OF CHANGES IN FAIR VALUE FOR LEVEL 3 ASSETS AND LIABILITIES
The following tables set out changes in fair value of all assets and liabilities measured at fair value using significant Level 3 unobservable inputs for the three
months ended January 31, 2025 and January 31, 2024.
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities
(millions of Canadian dollars)
Change in
unrealized
Fair
Total realized and
Fair
gains
value as at
unrealized gains (losses)
Movements
1
Transfers
value as at
(losses) on
November 1
Included
Included
Purchases/
Sales/
Into
Out of
January 31
instruments
2024
in income
2
in OCI
3,4
Issuances
Settlements
Level 3
Level 3
2025
still held
5
FINANCIAL ASSETS
Trading loans, securities,
and other
Government and government-
related securities
$
$
$
$
$
$
$
$
$
Other debt securities
(15 )
(1 )
Equity securities
(7 )
(22 )
(1 )
Non-trading financial
assets at fair value
through profit or loss
Securities
(19 )
(19 )
Financial assets at fair value
through other
comprehensive income
Other debt securities
(4 )
Equity securities
(183 )
$
$
$
$
$
(187 )
$
$
$
$
FINANCIAL LIABILITIES
Trading deposits
6
$
(505 )
$
$
$
(72 )
$
$
$
$
(459 )
$
Derivatives
7
Interest rate contracts
(158 )
(6 )
(155 )
Foreign exchange contracts
Equity contracts
(24 )
(5 )
(1 )
(29 )
(7 )
Commodity contracts
(10 )
(4 )
(191 )
(167 )
Financial liabilities designated
at fair value
through profit or loss
(24 )
(6 )
(1 )
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities
(millions of Canadian dollars)
Change in
unrealized
Fair
Total realized and
Fair
gains
value as at
unrealized gains (losses)
Movements
1
Transfers
value as at
(losses) on
November 1
Included
Included
Purchases/
Sales/
Into
Out of
January 31
instruments
2023
in income
2
in OCI
4
Issuances
Settlements
Level 3
Level 3
2024
still held
4
FINANCIAL ASSETS
Trading loans, securities,
and other
Government and government-
related securities
$
$
$
$
$
(33 )
$
$
$
$
(1 )
Other debt securities
(81 )
(1 )
Equity securities
(1 )
(2 )
(116 )
(2 )
Non-trading financial
assets at fair value
through profit or loss
Securities
(5 )
(5 )
Financial assets at fair value
through other
comprehensive income
Other debt securities
(3 )
(1 )
(3 )
Equity securities
(10 )
(231 )
$
$
$
(13 )
$
$
(232 )
$
$
$
$
(1 )
FINANCIAL LIABILITIES
Trading deposits
6
$
(985 )
$
(24 )
$
$
(56 )
$
$
$
$
(1,039 )
$
(43 )
Derivatives
7
Interest rate contracts
(126 )
(23 )
(137 )
(12 )
Foreign exchange contracts
(6 )
(1 )
(1 )
Equity contracts
(21 )
(6 )
(1 )
(28 )
(5 )
Commodity contracts
(1 )
(19 )
(10 )
(17 )
(154 )
(17 )
(7 )
(1 )
(176 )
(35 )
Financial liabilities designated
at fair value
through profit or loss
(22 )
(54 )
(24 )
1
Includes foreign exchange.
2
3
4
5
6
7
derivative liabilities of $
been netted in this table for presentation purposes only.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 60
NOTE 5: SECURITIES
(a)
UNREALIZED SECURITIES GAINS (LOSSES)
The following table summarizes the unrealized gains and losses as at January 31, 2025 and October 31, 2024.
Unrealized Gains (Losses) for Securities at Fair Value Through Other Comprehensive Income
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Cost/
Gross
Gross
Cost/
Gross
Gross
amortized
unrealized
unrealized
Fair
amortized
unrealized
unrealized
Fair
cost
1
gains
(losses)
value
cost
1
gains
(losses)
value
Government and government-related
securities
Canadian government debt
Federal
$
$
$
(161 )
$
$
$
$
(159 )
$
Provinces
(62 )
(70 )
U.S. federal, state, municipal governments, and
(129 )
(196 )
Other OECD government-guaranteed debt
(6 )
(9 )
Mortgage-backed securities
(4 )
(5 )
(362 )
(439 )
Other debt securities
Asset-backed securities
(8 )
(14 )
Corporate and other debt
(59 )
(50 )
(67 )
(64 )
Total debt securities
(429 )
(503 )
Equity securities
Common shares
(82 )
(72 )
Preferred shares
(154 )
(160 )
(236 )
(232 )
Total securities at fair value through
$
$
$
(665 )
$
$
$
$
(735 )
$
1
Includes the foreign exchange translation of amortized cost balances at the period-end spot rate.
(b)
EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
The Bank designated certain equity securities at FVOCI.
The following table summarizes the fair value of equity securities designated at FVOCI as at
January 31, 2025 and October 31, 2024, and dividend income recognized on these securities for the three months ended January 31, 2025 and January 31, 2024.
Equity Securities Designated at Fair Value Through Other Comprehensive Income
(millions of Canadian dollars)
As at
For the three months ended
January 31, 2025
October 31, 2024
January 31, 2025
January 31, 2024
Fair value
Dividend income recognized
Common shares
$
$
$
$
Preferred shares
Total
$
$
$
$
The Bank disposed of certain equity securities in line with the Bank’s investment strategy and disposed of Federal Home Loan Bank (FHLB) stock in accordance
with FHLB member stockholding requirements, as follows:
Equity Securities Net Realized Gains (Losses)
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Equity Securities
Fair value
$
$
Cumulative realized gain/(loss)
FHLB Stock
Fair value
Cumulative realized gain/(loss)
(c)
DEBT SECURITIES NET REALIZED GAINS (LOSSES)
The Bank disposed of certain debt securities measured at amortized cost and FVOCI during the quarter. The following table summarizes the net realized gains
and losses on securities disposed of during the three months ended January 31, 2025 and January 31, 2024, which are included in Other income (loss) on the
Interim Consolidated Statement of Income.
Debt Securities Net Realized Gains (Losses)
1
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Debt securities at amortized cost
$
(911 )
$
Debt securities at fair value through other comprehensive income
(9 )
Total
$
(920 )
$
1
Includes $
nil
) of pre-tax losses on debt securities related to the balance sheet restructuring initiative undertaken in
the U.S. Retail segment. Refer to Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements for additional information regarding the asset limitation on TD’s two U.S. bank
subsidiaries. As of February 26, 2025, the Bank has sold additional debt securities during the second quarter of fiscal 2025, resulting in approximately $
additional pre-tax losses on debt securities.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 61
(d)
CREDIT QUALITY OF DEBT SECURITIES
The Bank evaluates non-retail credit risk on an individual borrower basis, using both a borrower risk rating (BRR) and facility risk rating, as detailed in the shaded
area of the “Managing Risk” section of the 2024 MD&A. This system is used to assess all non-retail exposures, including debt securities.
The following table provides the gross carrying amounts of debt securities measured at amortized cost and debt securities at FVOCI by internal risk rating for credit
risk management purposes, presenting separately those debt securities that are subject to Stage 1, Stage 2, and Stage 3 allowances. Refer to the “Allowance for
Credit Losses” table in Note 6 for details regarding the allowance and provision for credit losses on debt securities.
Debt Securities by Risk Rating
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Debt securities
1
Investment grade
$
$
$
n/a
2
$
$
$
$
n/a
$
Non-investment grade
n/a
n/a
Watch and classified
n/a
n/a
n/a
n/a
Default
n/a
n/a
n/a
n/a
Total debt securities
Allowance for credit losses on debt securities
at amortized cost
Total debt securities, net of allowance
$
$
$
$
$
$
$
$
1
Includes debt securities backed by government-guaranteed loans of $
based on the issuer’s credit risk.
2
As at January 31, 2025, total debt securities, net of allowance, in the table above, include debt securities measured at amortized cost, net of allowance, of
$
difference between probability-weighted ECLs and base ECLs on debt securities at FVOCI and at amortized cost as at both January 31, 2025 and
October 31, 2024, was insignificant.
NOTE 6: LOANS, IMPAIRED LOANS, AND ALLOWANCE FOR CREDIT LOSSES
(a)
LOANS
The following table provides details regarding the Bank’s loans as at January 31, 2025 and October 31, 2024.
Loans
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Residential mortgages
$
$
Consumer instalment and other personal
Credit card
Business and government
Loans at FVOCI
Total loans
Total allowance for loan losses
Total loans, net of allowance
$
$
Business and government loans and loans at FVOCI are grouped together as reflected below for presentation in the “Loans by Risk Ratings” table.
Loans – Business and Government
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Loans at amortized cost
$
$
Loans at FVOCI
Loans
Allowance for loan losses
Loans, net of allowance
$
$
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 62
(b)
CREDIT QUALITY OF LOANS
In the retail portfolio, including individuals and small businesses, the Bank manages exposures on a pooled basis, using predictive credit scoring techniques. For
non-retail exposures, each borrower is assigned a BRR that reflects the probability of default (PD) of the borrower using proprietary industry and sector specific
risk models and expert judgment. Refer to the shaded areas of the “Managing Risk” section of the 2024 MD&A for further details, including the mapping of PD
ranges to risk levels for retail exposures as well as the Bank’s 21-point BRR scale to risk levels and external ratings for non-retail exposures.
The following table provides the gross carrying amounts of loans and credit risk exposures on loan commitments and financial guarantee contracts by internal risk
ratings for credit risk management purposes, presenting separately those that are subject to Stage 1, Stage 2, and Stage 3 allowances.
Loans by Risk Ratings
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential mortgages
1,2,3
Low Risk
$
$
$
n/a
$
$
$
$
n/a
$
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Consumer instalment and other personal
4
Low Risk
n/a
n/a
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Credit card
Low Risk
n/a
n/a
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Business and government
1,2,3,5
Investment grade or Low/Normal Risk
n/a
n/a
Non-investment grade or Medium Risk
n/a
n/a
Watch and classified or High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Total loans
Total allowance for loan losses
Total loans, net of allowance
$
$
$
$
$
$
$
$
1
Includes impaired loans with a balance of $
exceeded the loan amount.
2
Excludes trading loans and non-trading loans at fair value through profit or loss (FVTPL) with a fair value of $
$
3
Includes insured mortgages of $
4
5
Includes loans guaranteed by government agencies of $
the borrowers’ credit risk.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 63
Loans by Risk Ratings
(Continued)
1
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Retail Exposures
2
Low Risk
$
$
$
n/a
$
$
$
$
n/a
$
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Non-Retail Exposures
3
Investment grade
n/a
n/a
Non-investment grade
n/a
n/a
Watch and classified
Default
n/a
n/a
n/a
n/a
Total off-balance sheet credit
instruments
Allowance for off-balance sheet credit
instruments
Total off-balance sheet credit
instruments, net of allowance
$
$
$
$
$
$
$
$
1
Excludes mortgage commitments.
2
3
(c)
ALLOWANCE FOR CREDIT LOSSES
The following table provides details on the Bank’s allowance for credit losses as at and for the three months ended January 31, 2025 and January 31, 2024,
including allowance for off-balance sheet instruments in the applicable categories.
Allowance for Credit Losses
(millions of Canadian dollars)
Foreign
Foreign
exchange,
exchange,
Balance at
Provision
Write-offs,
disposals,
Balance
Balance at
Provision
Write-offs,
disposals,
Balance
beginning
for credit
net of
and other
at end of
beginning
for credit
net of
and other
at end of
of period
losses
recoveries
adjustments
period
of period
losses
recoveries
adjustments
period
For the three months ended
January 31, 2025
January 31, 2024
Residential mortgages
$
$
(1 )
$
(1 )
$
$
$
$
$
(2 )
$
$
Consumer instalment and other
personal
(334 )
(275 )
(23 )
Credit card
(436 )
(369 )
(61 )
Business and government
(186 )
(113 )
(79 )
Total allowance for loan losses,
including off-balance sheet
instruments
(957 )
(759 )
(162 )
Debt securities at amortized cost
Debt securities at FVOCI
(1 )
Total allowance for credit
losses on debt securities
(1 )
Total allowance for credit losses
$
$
$
(957 )
$
$
$
$
$
(759 )
$
(163 )
$
Comprising:
Allowance for credit losses on
loans at amortized cost
$
$
$
$
Allowance for credit losses on
loans at FVOCI
Allowance for loan losses
Allowance for off-balance sheet
instruments
Allowance for credit losses on
debt securities
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 64
(d)
ALLOWANCE FOR LOAN LOSSES BY STAGE
The following table provides details on the Bank’s allowance for loan losses by stage as at and for the three months ended January 31, 2025 and
January 31, 2024.
Allowance for Loan Losses by Stage
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential Mortgages
Balance at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(34 )
(1 )
(33 )
(3 )
Transfer to Stage 2
(6 )
(5 )
(10 )
(5 )
Transfer to Stage 3
(11 )
(9 )
Net remeasurement due to transfers into stage
2
(7 )
(3 )
(6 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
(1 )
(1 )
(2 )
(1 )
(1 )
Derecognition of financial assets (excluding
disposals and write-offs)
5
(4 )
(4 )
(6 )
(14 )
(2 )
(5 )
(4 )
(11 )
Changes to risk, parameters, and models
6
(28 )
(40 )
Disposals
Write-offs
(1 )
(1 )
(2 )
(2 )
Recoveries
Foreign exchange and other adjustments
(2 )
Balance at end of period
$
$
$
$
$
$
$
$
Consumer Instalment and Other Personal
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(184 )
(1 )
(130 )
(1 )
Transfer to Stage 2
(64 )
(23 )
(72 )
(19 )
Transfer to Stage 3
(3 )
(73 )
(3 )
(60 )
Net remeasurement due to transfers into stage
2
(82 )
(4 )
(54 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
(22 )
(25 )
(4 )
(51 )
(18 )
(21 )
(3 )
(42 )
Derecognition of financial assets (excluding
disposals and write-offs)
5
(21 )
(30 )
(10 )
(61 )
(17 )
(20 )
(10 )
(47 )
Changes to risk, parameters, and models
6
(102 )
(71 )
Disposals
Write-offs
(412 )
(412 )
(347 )
(347 )
Recoveries
Foreign exchange and other adjustments
(9 )
(12 )
(2 )
(23 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
7
Balance at end of period
$
$
$
$
$
$
$
$
Credit Card
8
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(474 )
(11 )
(239 )
(7 )
Transfer to Stage 2
(86 )
(21 )
(95 )
(16 )
Transfer to Stage 3
(5 )
(242 )
(6 )
(223 )
Net remeasurement due to transfers into stage
2
(222 )
(103 )
(108 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
Derecognition of financial assets (excluding
disposals and write-offs)
5
(27 )
(22 )
(75 )
(124 )
(10 )
(16 )
(84 )
(110 )
Changes to risk, parameters, and models
6
(247 )
(175 )
Disposals
Write-offs
(529 )
(529 )
(444 )
(444 )
Recoveries
Foreign exchange and other adjustments
(21 )
(29 )
(11 )
(61 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
7
Balance at end of period
$
$
$
$
$
$
$
$
1
Transfers represent stage transfer movements prior to ECL remeasurement.
2
described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2024 Annual Consolidated Financial Statements, holding all other factors impacting the
change in ECLs constant.
3
4
5
6
subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information ” and “Expert Credit Judgment” sections of Note 2 and Note 3 of the
Bank’s 2024 Annual Consolidated Financial Statements for further details.
7
8
Consolidated Financial Statements for further details.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 65
Allowance for Loan Losses by Stage
(Continued)
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Business and Government
1
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
2
(88 )
(62 )
Transfer to Stage 2
(153 )
(5 )
(117 )
(3 )
Transfer to Stage 3
(3 )
(152 )
(14 )
(55 )
Net remeasurement due to transfers into stage
2
(28 )
(21 )
New originations or purchases
2
n/a
n/a
n/a
n/a
Net repayments
2
(19 )
(10 )
(12 )
(8 )
(26 )
(26 )
Derecognition of financial assets (excluding
disposals and write-offs)
2
(169 )
(196 )
(76 )
(441 )
(172 )
(99 )
(45 )
(316 )
Changes to risk, parameters, and models
2
(162 )
Disposals
(9 )
(9 )
Write-offs
(202 )
(202 )
(124 )
(124 )
Recoveries
Foreign exchange and other adjustments
(2 )
(35 )
(30 )
(14 )
(79 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
3
Balance at end of period
Total Allowance, including off-balance sheet
instruments, at end of period
Less: Total Allowance for off-balance sheet
instruments
3
Total Allowance for Loan Losses at end of period
$
$
$
$
$
$
$
$
1
Includes allowance for loan losses related to customers’ liability under acceptances.
2
3
The allowance for credit losses on all remaining financial assets is not significant.
(e)
Relevant macroeconomic factors are incorporated in risk parameters as appropriate. Additional risk factors that are industry or segment specific are also
incorporated, where relevant. The key macroeconomic variables used in determining ECLs include regional unemployment rates for all retail exposures and
regional housing price indices for residential mortgages and home equity lines of credit. For business and government loans, the key macroeconomic variables
include gross domestic product (GDP), unemployment rates, interest rates, and credit spreads. Refer to Note 3 of the Bank’s 2024 Annual Consolidated Financial
Statements for a discussion of how forward-looking information is generated and considered in determining whether there has been a significant increase in credit
risk and in measuring ECLs.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 66
Macroeconomic Variables
Select macroeconomic variables are projected over the forecast period.
The following table sets out average values of the macroeconomic variables over the four
calendar quarters starting with the current quarter, and the remaining 4-year forecast period for the base forecast and upside and downside scenarios used in
determining the Bank’s ECLs as at January 31, 2025. As the forecast period increases, information about the future becomes less readily available and projections
are anchored on assumptions around structural relationships between economic parameters that are inherently much less certain. The baseline forecasts reflect
some tempering to growth considering policy and trade uncertainty, but do not factor in the pending March 4, 2025 tariffs by the U.S. administration on Canada
and Mexico as well as retaliatory actions. These actions – along with the potential for additional measures on these and other countries – represent a significant
downside risk to the global outlook.
Macroeconomic Variables
As at
January 31, 2025
Base Forecast
Upside Scenario
Downside Scenario
Average
Remaining
Average
Remaining
Average
Remaining
Q1 2025-
4-year
Q1 2025-
4-year
Q1 2025-
4-year
Q4 2025
1
period
1
Q4 2025
1
period
1
Q4 2025
1
period
1
Unemployment rate
Canada
%
%
%
%
%
%
United States
Real GDP
Canada
(0.5 )
United States
(0.2 )
Home prices
Canada (average existing price)
2
(3.7 )
United States (CoreLogic HPI)
3
(6.1 )
Central bank policy interest rate
Canada
United States
U.S. 10-year treasury yield
U.S. 10-year BBB spread (%-pts)
Exchange rate (U.S. dollar/Canadian dollar)
$
$
$
$
$
$
1
The numbers represent average values for the quoted periods, and average of year-on-year growth for real GDP and home prices.
2
The average home price is the average transacted sale price of homes sold via the Multiple Listing Service; data is collected by the Canadian Real Estate Association.
3
The CoreLogic home price index (HPI) is a repeat-sales index which tracks increases and decreases in the same home’s sales price over time.
(f)
ECLs are sensitive to the inputs used in internally developed models, the macroeconomic variables in the forward-looking forecasts and respective probability
weightings in determining the probability-weighted ECLs, and other factors considered when applying expert credit judgment. Changes in these inputs,
assumptions, models, and judgments would affect the assessment of significant increase in credit risk and the measurement of ECLs.
The following table presents the base ECL scenario compared to the probability-weighted ECLs, with the latter derived from three ECL scenarios for performing
loans and off-balance sheet instruments. The difference reflects the impact of deriving multiple scenarios around the base ECLs and resultant change in ECLs due
to non-linearity and sensitivity to using macroeconomic forecasts.
Change from Base to Probability-Weighted ECLs
(millions of Canadian dollars, except as noted)
As at
January 31, 2025
October 31, 2024
Probability-weighted ECLs
$
$
Base ECLs
Difference – in amount
$
$
Difference – in percentage
%
%
ECLs for performing loans and off-balance sheet instruments consist of an aggregate amount of Stage 1 and Stage 2 probability-weighted ECLs which are twelve-
month ECLs and lifetime ECLs, respectively. Transfers from Stage 1 to Stage 2 ECLs result from a significant increase in credit risk since initial recognition of the
loan.
The following table shows the estimated impact of staging on ECLs by presenting all performing loans and off-balance sheet instruments calculated using
twelve-month ECLs compared to the current aggregate probability-weighted ECLs, holding all risk profiles constant.
Incremental Lifetime ECLs Impact
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
Probability-weighted ECLs
$
$
All performing loans and off-balance sheet instruments using 12-month ECLs
Incremental lifetime ECLs impact
$
$
(g)
Foreclosed assets are repossessed non-financial assets where the Bank gains title, ownership, or possession of individual properties, such as real estate
properties, which are managed for sale in an orderly manner with the proceeds used to reduce or repay any outstanding debt. The Bank does not generally occupy
foreclosed properties for its business use. The Bank predominantly relies on third-party appraisals to determine the carrying value of foreclosed assets. Foreclosed
assets held for sale were $
Balance Sheet.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 67
(h)
A loan is classified as past due when a borrower has failed to make a payment by the contractual due date.
The following table summarizes loans that are past
due but not impaired. Loans less than 31 days contractually past due are excluded as they do not generally reflect a borrower’s ability to meet their payment
obligations.
Loans Past Due but not Impaired
1
(millions of Canadian dollars)
As at
January 31, 2025
October 31, 2024
31-60
61-89
31-60
61-89
days
days
Total
days
days
Total
Residential mortgages
$
$
$
$
$
$
Consumer instalment and other personal
Credit card
Business and government
Total
$
$
$
$
$
$
1
Includes loans that are measured at FVOCI.
(i)
Subsequent to quarter end, the Bank reached an agreement to sell approximately US$
loans), which is expected to result in a recognition of a pre-tax loss of approximately US$
balance sheet restructuring activities outlined in the fourth quarter of fiscal 2024.
NOTE 7: INVESTMENT IN ASSOCIATES AND JOINT VENTURES
INVESTMENT IN THE CHARLES SCHWAB CORPORATION
As at January 31, 2025, the Bank had significant influence over The Charles Schwab Corporation (“Schwab”) and the ability to participate in the financial and
operational policy-making decisions of Schwab through a combination of the Bank’s ownership, board representation and the insured deposit account agreement
(“IDA Agreement”) between the Bank and Schwab. As such, the Bank accounted for its investment in Schwab using the equity method. The Bank’s share of
Schwab’s earnings available to common shareholders was reported with a one-month lag. The Bank took into account changes in the one-month lag period that
would significantly affect the results.
On August 21, 2024, the Bank sold
reduced the Bank’s ownership interest in Schwab from
% to
%. The Bank recognized approximately $
$
As at January 31, 2025, the Bank’s reported investment in Schwab was approximately
% (October 31, 2024 –
%), which consisted of
% of the
outstanding voting common shares and the remainder in non-voting common shares of Schwab with an aggregate fair value of $
31, 2024 – $
) on the New York Stock Exchange.
As at January 31, 2025, the Bank and Schwab were party to a stockholder agreement (the “Stockholder Agreement”) under which the Bank had the right to
designate two members of Schwab’s Board of Directors and had representation on two Board Committees, subject to the Bank meeting certain conditions. The
Bank’s designated directors as at January 31, 2025 were the Bank’s Group President and Chief Executive Officer and the Bank’s former Chair of the Board. Under
the Stockholder Agreement, the Bank was not permitted to own more than
% voting common shares of Schwab, and the Bank was subject to customary
standstill restrictions and subject to certain exceptions, transfer restrictions.
The carrying value of the Bank’s investment in Schwab of $
Schwab’s stockholders’ equity, adjusted for goodwill, other intangibles, and cumulative translation adjustment. The Bank’s share of net income from its investment
in Schwab of $
amortization of certain intangibles net of tax.
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab.
Immediately prior to the sale, TD held
% economic ownership. The sale of the shares resulted
in proceeds of approximately $
investment in Schwab of approximately $
release of AOCI on designated net investment hedging items, direct transaction costs, and taxes. The Bank will also recognize $
its Wholesale segment as a result of TD Securities acting as a lead bookrunner on the transaction.
The transaction is expected to increase Common Equity Tier 1 (CET1) capital by approximately
January 31, 2025. The Bank continues to have a business relationship with Schwab through the IDA Agreement. The Stockholder Agreement was terminated by
the Bank’s sale of its equity investment in Schwab and the Bank will discontinue recording its share of earnings available to common shareholders from its
investment in Schwab in the second quarter of fiscal 2025.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 68
The following tables represent the gross amount of Schwab’s total assets, liabilities, net revenues, net income available to common stockholders, other
comprehensive income (loss), and comprehensive income (loss).
Summarized Financial Information
(millions of Canadian dollars)
As at
December 31
September 30
2024
2024
Total assets
$
$
Total liabilities
(millions of Canadian dollars)
For the three months ended
December 31
December 31
2024
2023
Total net revenues
$
$
Total net income available to common stockholders
Total other comprehensive income (loss)
(322 )
Total comprehensive income (loss)
Insured Deposit Account Agreement
On November 25, 2019, the Bank and Schwab signed an insured deposit account agreement (the “2019 Schwab IDA Agreement”), with an initial expiration date of
July 1, 2031. Under the 2019 Schwab IDA Agreement, starting July 1, 2021, Schwab had the option to reduce the deposits by up to US$
to certain limitations and adjustments), with a floor of US$
deposit balances to fluctuate over time, under certain conditions and subject to certain limitations.
On May 4, 2023, the Bank and Schwab entered into an amended insured deposit account agreement (the “2023 Schwab IDA Agreement” or the “Schwab IDA
Agreement”), which replaced the 2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab IDA Agreement, the Bank continues to make sweep deposit
accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits
are designated as floating-rate obligations. In comparison to the 2019 Schwab IDA Agreement, the 2023 Schwab IDA Agreement extends the initial expiration date
by three years to July 1, 2034 and provides for lower deposit balances in its first six years, followed by higher balances in the later years. Specifically, until
September 2025, the aggregate FROA will serve as the floor. Thereafter, the floor will be set at US$
to $
During the first quarter of fiscal 2024, Schwab exercised its option to buy down the remaining $
allowance and paid $
of fiscal 2024, Schwab had completed its buydown of the full US$
termination fees to the Bank. The fees were intended to compensate the Bank for losses incurred from discontinuing certain hedging relationships and for lost
revenues. The net impact was recorded in net interest income.
Refer to Note 27 of the Bank’s 2024 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
NOTE 8: OTHER ASSETS
Other Assets
(millions of Canadian dollars)
As at
January 31
October 31
2025
2024
Accounts receivable and other items
$
$
Accrued interest
Cheques and other items in transit
Current income tax receivable
Defined benefit asset
Prepaid expenses
Reinsurance contract assets
Total
$
$
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 69
NOTE 9: DEPOSITS
Demand deposits are those for which the Bank does not have the right to require notice prior to withdrawal, which primarily include business and government
chequing accounts. Notice deposits are those for which the Bank can legally require notice prior to withdrawal, which include both savings and chequing
accounts. Term deposits are payable on a given date of maturity and are purchased by customers to earn interest over a fixed period, with terms ranging from
one day to ten years and generally include fixed term deposits, guaranteed investment certificates, senior debt, and similar instruments. The aggregate amount
of term deposits in denominations of $100,000 or more as at January 31, 2025, was $
Deposits
(millions of Canadian dollars)
As at
January 31
October 31
By Type
By Country
2025
2024
Demand
Notice
Term
1
Canada
United States
International
Total
Total
Personal
$
$
$
$
$
$
$
$
Banks
Business and government
2
Trading
Designated at fair value through
profit or loss
3
Total
$
$
$
$
$
$
$
$
Non-interest-bearing deposits
included above
4
Canada
$
$
United States
International
Interest-bearing deposits
included above
4
Canada
United States
5
International
Total
2,6
$
$
1
Includes $
Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities into common shares in the event that the Bank becomes non-viable.
2
Includes $
3
guarantees designated at FVTPL.
4
5
6
currencies.
NOTE 10: OTHER LIABILITIES
Other Liabilities
(millions of Canadian dollars)
As at
January 31
October 31
2025
2024
Accounts payable, accrued expenses, and other items
$
$
Accrued interest
Accrued salaries and employee benefits
Cheques and other items in transit
Current income tax payable
Deferred tax liabilities
Defined benefit liability
Lease liabilities
Liabilities related to structured entities
Provisions
Total
$
$
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 70
NOTE 11: SUBORDINATED NOTES AND DEBENTURES
Issues
On January 23, 2025, the Bank issued EUR
subordinated indebtedness of the Bank (the “Euro Notes”), maturing on January 23, 2036. The Euro Notes will bear interest at a fixed rate of
% per annum
(paid annually) until January 23, 2031, and at the 5-year mid-swap rate plus
% thereafter (paid annually) until maturity on January 23, 2036. With prior
approval of OSFI, the Bank may, at its option, redeem the Euro Notes on January 23, 2031, in whole but not in part, at par plus accrued and unpaid interest by
giving not more than
On January 31, 2025, the Bank issued $
February 1, 2035. The Notes will bear interest at a fixed rate of
% per annum (paid semi-annually) until February 1, 2030, and at Daily Compounded
Canadian Overnight Repo Rate Average plus
% thereafter (paid quarterly) until maturity on February 1, 2035. With prior approval of OSFI, the Bank may, at its
option, redeem the Notes on or after February 1, 2030, in whole or in part, at par plus accrued and unpaid interest by giving not more than
days’ notice to holders.
NOTE 12: EQUITY
The following table summarizes the changes to the shares and other equity instruments issued and outstanding, and treasury instruments held as at and for the
three months ended January 31, 2025 and January 31, 2024.
Shares and Other Equity Instruments Issued and Outstanding and Treasury Instruments Held
(millions of shares or other equity instruments
and millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Number
Number
of shares
Amount
of shares
Amount
Common Shares
Balance as at beginning of period
$
$
Proceeds from shares issued on exercise
of stock options
Shares issued as a result of dividend
reinvestment plan
Purchase of shares for cancellation and other
(20.9 )
(295 )
Balance as at end of period – common shares
$
$
Preferred Shares and Other Equity Instruments
Preferred Shares – Class A
Balance as at beginning of period
$
$
Redemption of shares
1
(20.0 )
(500 )
Balance as at end of period
$
$
Other Equity Instruments
2
Balance as at beginning of period
$
$
Issue of limited recourse capital notes
3
Balance as at end of period
Balance as at end of period – preferred shares
and other equity instruments
$
$
Treasury – common shares
4
Balance as at beginning of period
$
(17 )
$
(64 )
Purchase of shares
(3,504 )
(3,096 )
Sale of shares
(44.6 )
(37.5 )
Balance as at end of period – treasury
– common shares
$
(38 )
$
(58 )
Treasury – preferred shares and
other equity instruments
4
Balance as at beginning of period
$
(18 )
$
(65 )
Purchase of shares and other equity instruments
(1,120 )
(98 )
Sale of shares and other equity instruments
(2.1 )
(1.7 )
Balance as at end of period – treasury
– preferred shares and other equity instruments
$
(51 )
$
(27 )
1
On January 31, 2025, the Bank redeemed all of its
Shares”), at a redemption price of $
2
3
% Fixed Rate Reset Limited Recourse Capital Notes, Series 5 NVCC (the “LRCNs”). The LRCNs will bear interest at a rate of
equal to the prevailing Government of Canada Yield plus
% Fixed Rate Reset Preferred Shares, Series 32 NVCC (“Preferred Shares Series 32”). The Preferred Shares Series 32 are eliminated on the Bank’s
Consolidated Financial Statements.
4
reduction in equity.
DIVIDENDS
On February 26, 2025, the Board approved a dividend in an amount of one dollar and five cents ($
) per fully paid common share in the capital stock of the
Bank for the quarter ending April 30, 2025, payable on and after April 30, 2025, to shareholders of record at the close of business on April 10, 2025.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 71
DIVIDEND REINVESTMENT PLAN
The Bank offers a dividend reinvestment plan for its common shareholders. Participation in the plan is optional and under the terms of the plan, cash dividends on
common shares are used to purchase additional common shares. At the option of the Bank, the common shares may be issued from treasury at an average
market price based on the last five trading days before the date of the dividend payment, with a discount of between
% to
% at the Bank’s discretion or
purchased from the open market at market price.
During the three months ended January 31, 2025, the Bank issued
treasury with
NORMAL COURSE ISSUER BID
On August 28, 2023, the Bank announced that the Toronto Stock Exchange and OSFI approved a normal course issuer bid (NCIB) to repurchase for cancellation
up to
August 31, 2024, the Bank repurchased
of common shares by the Bank under the NCIB during the three months ended January 31, 2025. During the three months ended January 31, 2024, the Bank
repurchased
Subsequent to the quarter end, on February 24, 2025, the Bank announced that the Toronto Stock Exchange and OSFI had approved the Bank’s previously
announced NCIB to purchase for cancellation up to
or such earlier date as the Bank may determine.
NOTE 13: SHARE-BASED COMPENSATION
For the three months ended January 31, 2025, the Bank recognized compensation expense for stock option awards of $
January 31, 2024 – $
were granted by the Bank at a weighted-average fair value of $
The following table summarizes the assumptions used for estimating the fair value of options for the three months ended January 31, 2025 and January 31, 2024.
Assumptions Used for Estimating the Fair Value of Options
(in Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2025
2024
Risk-free interest rate
%
%
Option contractual life
Expected volatility
%
%
Expected dividend yield
%
%
Exercise price/share price
$
$
The risk-free interest rate is based on Government of Canada benchmark bond yields as at the grant date. Expected volatility is calculated based on the historical
average daily volatility and expected dividend yield is based on dividend payouts in the last fiscal year. These assumptions are measured over a period
corresponding to the option contractual life.
NOTE 14: EMPLOYEE BENEFITS
The following table summarizes expenses for the Bank’s principal pension and non-pension post-retirement defined benefit plans and the Bank’s other material
defined benefit pension plans, for the three months ended January 31, 2025 and January 31, 2024. Other employee defined benefit plans operated by the Bank
and certain of its subsidiaries are not considered material for disclosure purposes.
Defined Benefit Plan Expenses
(millions of Canadian dollars)
Principal post-retirement
Principal pension plans
benefit plan
Other pension plans
1
For the three months ended
January 31
January 31
January 31
January 31
January 31
January 31
2025
2024
2025
2024
2025
2024
Service cost – benefits earned
$
$
$
$
$
$
Net interest cost (income) on net defined benefit liability (asset)
(12 )
(20 )
Interest cost on asset limitation and minimum funding
requirement
Defined benefit administrative expenses
Total
$
$
$
$
$
$
1
Includes Canada Trust defined benefit pension plan, TD Banknorth defined benefit pension plan, TD Auto Finance defined benefit pension plan, TD Insurance defined benefit pension
plan, and supplemental executive defined benefit pension plans.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 72
The following table summarizes expenses for the Bank’s defined contribution plans for the three months ended January 31, 2025 and January 31, 2024.
Defined Contribution Plan Expenses
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2025
2024
Defined contribution pension plans
1
$
$
Government pension plans
2
Total
$
$
1
Includes defined contribution portion of the TD Pension Plan (Canada) and TD Bank, N.A. defined contribution 401(k) plan.
2
Federal Insurance Contributions Act
.
The following table summarizes the remeasurements recognized in OCI for the Bank’s principal pension and post-retirement defined benefit plans and certain of
the Bank’s other material defined benefit pension plans, for the three months ended January 31, 2025 and January 31, 2024.
Amounts Recognized in Other Comprehensive Income for Remeasurement of Defined Benefit Plans
1,2,3
(millions of Canadian dollars)
Principal post-retirement
Principal pension plans
benefit plan
Other pension plans
For the three months ended
January 31
January 31
January 31
January 31
January 31
January 31
2025
2024
2025
2024
2025
2024
Remeasurement gain/(loss) – financial
$
(139 )
$
(1,124 )
$
(7 )
$
(36 )
$
(10 )
$
(43 )
Remeasurement gain/(loss) – return on plan assets less
interest income
Change in asset limitation and minimum funding requirement
(3 )
Total
$
$
(148 )
$
(7 )
$
(36 )
$
(10 )
$
(43 )
1
plan, and other employee defined benefit plans operated by the Bank and certain of its subsidiaries not considered material for disclosure purposes as these plans are not remeasured on
a quarterly basis.
2
3
NOTE 15: INCOME TAXES
International Tax Reform – Pillar Two Global Minimum Tax
On December 20, 2021, the OECD published Pillar Two model rules as part of its efforts toward international tax reform. The Pillar Two model rules provide for the
implementation of a 15% global minimum tax for large multinational enterprises, which is to be applied on a jurisdiction-by-jurisdiction basis. Pillar Two legislation
was enacted in Canada on June 20, 2024 under Bill C-69, which includes the
Global Minimum Tax Act
has passed in other jurisdictions in which the Bank operates and will result in additional taxes being paid in these countries. The rules were effective and
implemented by the Bank on November 1, 2024. The IASB previously issued amendments to IAS 12
Income Taxes
recognition and disclosure of deferred taxes related to the implementation of Pillar Two model rules, which the Bank has applied. For the three months ended
January 31, 2025, the Bank’s effective tax rate increased by approximately
% due to Pillar Two taxes.
Other Tax Matters
The Canada Revenue Agency (CRA), Revenu Québec Agency (RQA) and Alberta Tax and Revenue Administration (ATRA) are denying certain dividend and
interest deductions claimed by the Bank. During the quarter, the CRA reassessed the Bank for $
2019 taxation year. As at January 31, 2025, the CRA has reassessed the Bank for $
for $
reassessed for $
positions were appropriate and filed a Notice of Appeal with the Tax Court of Canada on March 21, 2023.
NOTE 16: EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of common shares
outstanding for the period.
Diluted earnings per share is calculated using the same method as basic earnings per share except that certain adjustments are made to net income
attributable to common shareholders and the weighted-average number of shares outstanding for the effects of all dilutive potential common shares that are
assumed to be issued by the Bank.
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 73
The following table presents the Bank’s basic and diluted earnings per share for the three months ended January 31, 2025 and January 31, 2024.
Basic and Diluted Earnings Per Share
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2025
2024
Basic earnings per share
Net income attributable to common shareholders
$
$
Weighted-average number of common shares outstanding (millions)
Basic earnings per share
(Canadian dollars)
$
$
Diluted earnings per share
Net income attributable to common shareholders
$
$
Net income attributable to common shareholders including impact of dilutive securities
Weighted-average number of common shares outstanding (millions)
Effect of dilutive securities
Stock options potentially exercisable (millions)
1
Weighted-average number of common shares outstanding – diluted (millions)
Diluted earnings per share
(Canadian dollars)
1
$
$
1
For the three months ended January 31, 2025, the computation of diluted earnings per share excluded average options outstanding of
of $
, as the option price was greater than the average market price of the Bank’s common shares. For the three months ended January 31, 2024, the computation of diluted
earnings per share excluded average options outstanding of
, as the option price was greater than the average market price
of the Bank’s common shares.
NOTE 17: PROVISIONS AND CONTINGENT LIABILITIES
Other than as described below, there have been no new significant events or transactions except as previously identified in Note 26 of the Bank’s 2024 Annual
Consolidated Financial Statements.
(a)
In the ordinary course of business, the Bank and its subsidiaries are involved in various legal and regulatory actions, including but not limited to civil claims and
lawsuits, regulatory examinations, investigations, audits, and requests for information by governmental, regulatory and self-regulatory agencies and law
enforcement authorities in various jurisdictions, in respect of our businesses and compliance programs. The Bank establishes provisions when it becomes
probable that the Bank will incur a loss and the amount can be reliably estimated. The Bank also estimates the aggregate range of reasonably possible losses
(RPL) in its legal and regulatory actions (that is, those which are neither probable nor remote), in excess of provisions. However, the Bank does not disclose the
specific possible loss associated with each underlying matter given the substantial uncertainty associated with each possible loss as described below and the
negative consequences to the Bank’s resolution of the matters that comprise the RPL should individual possible losses be disclosed. As at January 31, 2025, the
Bank’s RPL is from
Bank’s best estimates based upon currently available information for actions for which estimates can be made, but there are a number of factors that could cause
the Bank’s actual losses to be significantly different from its provisions or RPL. For example, the Bank’s estimates involve significant judgment due to the varying
stages of the proceedings, the existence of multiple defendants in many proceedings whose share of liability has yet to be determined, the numerous yet-
unresolved issues in many of the proceedings, some of which are beyond the Bank’s control and/or involve novel legal theories and interpretations, the attendant
uncertainty of the various potential outcomes of such proceedings, and the fact that the underlying matters will change from time to time. In addition, some actions
seek very large or indeterminate damages. Refer to Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements for details on the Bank’s significant
legal and regulatory matters. Based on the Bank’s current knowledge, and subject to the factors listed above as well as other uncertainties inherent in litigation and
regulatory matters, other than as described below: (i) there have been no notable developments to the matters previously identified in Note 26 of the Bank’s 2024
Annual Consolidated Financial Statements; and (ii) since October 31, 2024, no other legal or regulatory matter has arisen or progressed to the point that it would
reasonably be expected to result in a material financial impact to the Bank.
As previously disclosed in Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements, 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 and AML
compliance programs (the “Global Resolution”). The Bank and certain of its U.S. subsidiaries consented to orders with the Office of the Comptroller of the
Currency (OCC), the Federal Reserve Board, and the Financial Crimes Enforcement Network (FinCEN) and entered into plea agreements with the Department of
Justice (DOJ), Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney’s Office for the District of New Jersey. The Bank
is focused on meeting the terms of the consent orders and plea agreements, including meeting its requirements to remediate the Bank’s U.S. BSA/AML programs.
During the first fiscal quarter, the Bank fully paid the remainder of the monetary penalty owed pursuant to the consent orders and plea agreements that were
entered into as part of the Global Resolution. The payment was covered by provisions previously taken by the Bank for this matter.
As previously disclosed in Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements, the Bank and some former and current directors, officers and
employees have been named as defendants in proposed class action lawsuits in the United States and Canada purporting to be brought on behalf of TD
shareholders alleging, among other things, that a decline in the price of TD’s shares was the result of misleading disclosures with respect to the Bank’s AML
program and/or the potential outcomes of the government agencies’ or regulators’ investigations. The two proposed class actions filed in the United States have
been consolidated under the caption
Tiessen v. The Toronto-Dominion Bank, et al.
, in the United States District Court for the Southern District of New York.
A
putative shareholder derivative action has also been filed purportedly on behalf of TD in the United States in the Supreme Court of the State of New York, New
York County, against certain former and current TD directors, officers and employees, and certain of TD’s U.S. affiliates and subsidiaries. The complaint, captioned
Rubin v. Masrani, et al,
of the proceedings are still in early stages and none have been certified to proceed as a class action. Losses or damages cannot be estimated at this time.
As previously disclosed in Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements, the Bank has been named as defendant in a purported class
action lawsuit in the United States purporting to be brought on behalf of First Horizon shareholders alleging that a decline in the price of First Horizon shares was
the result of alleged misleading disclosures TD made with respect to TD’s U.S. AML program and its effect on the Bank’s contemplated merger with First Horizon.
The lawsuit also names some of the Bank’s former and current officers and a former employee as defendants. These proceedings are still in early stages and have
not been certified to proceed as a class action. Losses or damages cannot be estimated at this time.
As previously disclosed in Note 26 of the Bank’s 2024 Annual Consolidated Financial Statements, the Bank is a defendant in Canada and/or the United States
in a number of matters brought by customers, including class actions, alleging claims in connection with various fees, practices and credit decisions. The cases are
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 74
in various stages of maturity and include, among others: a Quebec action against members of the financial services industry (including the Bank) regarding the
existence and amount of the insufficient or non-sufficient funds fee (NSF fee), a Quebec action against certain brokers (including TD Direct Investing) regarding
disclosure of foreign conversion fees, and a Quebec action against members of the automobile insurance industry (including Primmum Insurance Company)
regarding underwriting practices in Quebec.
Refer to Note 15 for disclosures related to tax matters.
NOTE 18: SEGMENTED INFORMATION
For management reporting purposes, the Bank reports its results from business operations and activities under four key business segments: Canadian Personal
and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the Corporate
segment.
Canadian Personal and Commercial Banking provides financial products and services to personal, small business and commercial customers, and includes
TD Auto Finance Canada. U.S. Retail is comprised of personal and business banking in the U.S., TD Auto Finance U.S., the U.S. wealth business, as well as the
Bank’s equity investment in Schwab. Wealth Management and Insurance includes the Canadian wealth business which provides investment products and services
to institutional and retail investors, and the insurance business which provides property and casualty insurance, as well as life and health insurance products to
customers across Canada. Wholesale Banking provides a wide range of capital markets, investment banking, and corporate banking products and services,
including underwriting and distribution of new debt and equity issues, providing advice on strategic acquisitions and divestitures, and meeting the daily trading,
funding, and investment needs of the Bank’s clients. The Corporate segment includes the effects of certain asset securitization programs, treasury management,
elimination of taxable equivalent adjustments and other management reclassifications, corporate level tax items, and residual unallocated revenue and expenses.
Effective the first quarter of 2025, certain U.S. governance and control investments, including costs for U.S. BSA/AML remediation, previously reported in the
Corporate segment are now reported in the U.S. Retail segment. Comparative amounts have been reclassified to conform with the presentation adopted in the
current period.
The following table summarizes the segment results for the three months ended January 31, 2025 and January 31, 2024.
Results by Business Segment
1
(millions of Canadian dollars)
Canadian
Wealth
Personal and
Management
Commercial Banking
U.S. Retail
and Insurance
Wholesale Banking
2
Corporate
2
Total
For the three months ended January 31
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Net interest income (loss)
$
$
$
$
$
$
$
(107 )
$
$
$
$
$
Non-interest income (loss)
(282 )
Total revenue
Provision for (recovery of)
credit losses
Insurance service expenses
Non-interest expenses
Income (loss) before income taxes
and share of net income from
investment in Schwab
(49 )
(544 )
(811 )
Provision for (recovery of)
income taxes
(192 )
(17 )
(153 )
(273 )
Share of net income from
investment in Schwab
3,4
(53 )
Net income (loss)
$
$
$
$
$
$
$
$
$
(359 )
$
(591 )
$
$
1
The retailer program partners’ share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners’ net share) recorded in
Non-interest expenses, resulting in no impact to Corporate reported Net income (loss). The Net income (loss) included in the U.S. Retail segment includes only the portion of revenue and
credit losses attributable to the Bank under the agreements.
2
segment.
3
share of Schwab’s restructuring charges, and the Bank’s share of Schwab’s Federal Deposit Insurance Corporation special assessment charge are recorded in the Corporate segment.
4
Total Assets by Business Segment
(millions of Canadian dollars)
Canadian
Wealth
Personal and
Management
Wholesale
Commercial Banking
U.S. Retail
and Insurance
Banking
Corporate
Total
As at January 31, 2025
Total assets
$
$
$
$
$
$
As at October 31, 2024
Total assets
$
$
$
$
$
$
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 75
NOTE 19: INTEREST INCOME AND EXPENSE
The following tables present interest income and interest expense by basis of accounting measurement.
Interest Income
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Measured at amortized cost
1
$
$
Measured at FVOCI – Debt instruments
1
Measured or designated at FVTPL
Measured at FVOCI – Equity instruments
Total
$
$
1
Interest income is calculated using EIRM.
Interest Expense
(millions of Canadian dollars)
For the three months ended
January 31, 2025
January 31, 2024
Measured at amortized cost
1
$
$
Measured or designated at FVTPL
Total
$
$
1
Interest expense is calculated using EIRM.
NOTE 20: REGULATORY CAPITAL
The Bank manages its capital under guidelines established by OSFI. The regulatory capital guidelines measure capital in relation to credit, market, and operational
risks. The Bank has various capital policies, procedures, and controls which it utilizes to achieve its goals and objectives. The Bank is designated as a domestic
systemically important bank (D-SIB) and a global systemically important bank (G-SIB).
Canadian banks designated as D-SIBs are required to comply with OSFI’s minimum targets for risk-based capital and leverage ratios. The minimum targets
include a D-SIB surcharge and Domestic Stability Buffer (DSB) for CET1, Tier 1, Total Capital and risk-based Total Loss Absorbing Capacity (TLAC) ratios. The
DSB level was increased to
% as of November 1, 2023, which sets these minimum target ratios at
%,
%,
% and
%, respectively. The OSFI
target includes the greater of the D-SIB or G-SIB surcharge, both of which are currently
% for the Bank. On February 1, 2023, OSFI announced revisions to the
Leverage Requirements Guideline to introduce a requirement for D-SIBs to hold a leverage ratio buffer of
% in addition to the existing minimum requirement.
This sets the minimum targets for leverage and TLAC leverage ratios at
% and
%, respectively.
The Bank complied with all minimum risk-based capital and leverage ratio requirements set by OSFI in the three months ended January 31, 2025.
The following table summarizes the Bank’s regulatory capital positions as at January 31, 2025 and October 31, 2024.
Regulatory Capital Position
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
2025
2024
Capital
Common Equity Tier 1 Capital
$
$
Tier 1 Capital
Total Capital
Risk-weighted assets used in the calculation of capital ratios
Capital and leverage ratios
Common Equity Tier 1 Capital ratio
%
%
Tier 1 Capital ratio
Total Capital ratio
Leverage ratio
TLAC Ratio
TLAC Leverage Ratio
TD BANK GROUP • FIRST QUARTER 2025 • REPORT TO SHAREHOLDERS
Page 76
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If you:
And your inquiry relates to:
Are a registered shareholder (your name appears
on your TD share certificate)
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of
shareholder materials or stopping (or resuming)
receiving annual and quarterly reports
Transfer Agent:
TSX Trust Company
301-100 Adelaide Street West
Toronto, ON M5H 4H1
1-800-387-0825 (Canada and U.S. only)
or 416-682-3860
Facsimile: 1-888-249-6189
shareholderinquiries@tmx.com or www.tsxtrust.com
Hold your TD shares through the
Direct Registration System
in the United States
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
eliminating duplicate mailings of shareholder
materials or stopping (or resuming) receiving annual
and quarterly reports
Co-Transfer Agent and Registrar:
Computershare Trust Company, N.A.
P.O. Box 43006
Providence, RI 02940-3006
or
Computershare Trust Company, N.A.
150 Royall Street
Canton, MA 02021
1-866-233-4836
TDD for hearing impaired: 1-800-231-5469
Shareholders outside of U.S.: 201-680-6578
TDD shareholders outside of U.S.: 201-680-6610
Email inquiries: web.queries@computershare.com
For electronic access to your account visit:
www.computershare.com/investor
Beneficially own TD shares that are held in the
name of an intermediary, such as a bank, a trust
company, a securities broker or other nominee
Your TD shares, including questions regarding the
dividend reinvestment plan and mailings of
shareholder materials
Your intermediary
For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by
leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.
General Information
Products and services: Contact TD Canada Trust, 24 hours a day, seven days a week: 1-866-567-8888
French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the hearing impaired (TTY): 1-800-361-1180
Website:
Email:
customer.service@td.com
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on February 27, 2025. The call will be audio webcast live through TD’s website at
9:30 a.m. ET. The call will feature presentations by TD executives on the Bank’s financial results for the first quarter and discussions of related disclosures,
followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at
www.td.com/investor
passcode is 2829533#.
The audio webcast and presentations will be archived at
www.td.com/investor
. Replay of the teleconference will be available from 5:00 p.m. ET on
February 27, 2025, until 11:59 p.m. ET on March 14, 2025, by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is 8753393#.
Annual Meeting
Thursday, April 10, 2025
Toronto, Ontario
