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Jan 31, 2025
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TD Q1 2025 Earnings Report
TD Bank Group reported stable earnings for Q1 2025, supported by strong revenue but impacted by higher expenses.
Key Takeaways
TD Bank Group delivered stable earnings in Q1 2025, with total revenue of $14.05 billion, up 2% YoY. Adjusted net income stood at $3.62 billion, while adjusted EPS was $2.02. Higher provisions for credit losses and governance-related expenses weighed on profitability. The bank maintained a robust Common Equity Tier 1 (CET1) capital ratio of 13.1%, demonstrating financial strength.
Total revenue increased 2% YoY to $14.05 billion, driven by growth in commercial banking and wealth management.
Adjusted EPS was $2.02, reflecting stable earnings performance.
Provisions for credit losses increased to $1.21 billion due to higher impairments in consumer and commercial loans.
CET1 capital ratio remained strong at 13.1%, providing capital flexibility.
Revenue by Segment
Forward Guidance
TD expects steady revenue growth in 2025, supported by strong banking fundamentals and wealth management expansion, but remains cautious on macroeconomic risks.
Positive Outlook
- Revenue growth expected across banking and wealth management segments.
- Continued investment in digital banking and operational efficiencies.
- Stable net interest margins supported by disciplined pricing strategies.
- Strong capital position enables flexibility for potential share buybacks.
- Continued focus on cost control and risk management.
Challenges Ahead
- Higher provisions for credit losses expected due to economic uncertainty.
- Regulatory compliance costs continue to impact profitability.
- Slower growth in U.S. Retail segment due to restructuring efforts.
- Global macroeconomic conditions and interest rate fluctuations pose risks.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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