TD Bank Group reported third-quarter 2026 earnings of C$4.6 billion and diluted earnings per share of C$2.74, up from C$3.34 billion and C$1.89 respectively in the prior-year quarter, as adjusted EPS of C$2.77 topped analyst consensus of C$2.47.
Reported profit rose 38% year on year from C$3.34 billion, and the Toronto-based lender said adjusted earnings rose 21% to C$4.7 billion.
ADJUSTED EPS BEATS CONSENSUS
Adjusted EPS of C$2.77 came in 30 cents above the C$2.47 average estimate compiled by S&P Capital IQ, according to The Globe and Mail. Reported diluted EPS of C$2.74 was three cents below the adjusted figure, reflecting items of note for the amortisation of acquired intangibles and the terminated First Horizon acquisition-related capital hedging strategy.
The step up in reported EPS from C$1.89 in the prior-year quarter to C$2.74 represents growth of 45%. That gain is larger than the 38% rise in reported net income.
TD is one of North America's largest lenders, combining a leading Canadian personal and commercial banking franchise with a substantial retail bank on the US East Coast under the TD Bank, America's Most Convenient Bank brand, alongside a wholesale banking arm and a wealth management and insurance business.
REPORTED PROFIT UP 38%
Reported earnings of C$4.6 billion for the three months compare with C$3.34 billion for the corresponding quarter of the prior fiscal year, an increase of 38%. TD, which is remediating its U.S. anti-money laundering programme, also said it intends to open 100 new U.S. branches by the end of 2028, pending regulatory approval.
Wholesale Banking net income rose 87% year on year to C$743 million and U.S. Banking net income rose 41% to C$1,074 million on a reported basis, while Canadian Personal and Commercial Banking earned a record C$2,095 million, up 7%.
TD's fiscal year runs from 1 November to 31 October, meaning the third-quarter numbers cover the three months to 31 July 2026 and leave the group with one quarter still to go in its fiscal 2026 reporting cycle.
The result forms part of the Canadian banking sector's summer earnings cycle, with the country's largest lenders each disclosing third-quarter figures over the same reporting window. Royal Bank of Canada and CIBC also beat analysts' estimates on the same day.
Chief executive Raymond Chun said TD had a very strong quarter, with record earnings in its Canadian businesses and Wholesale Banking and growing momentum in U.S. Banking. Further colour on segment performance, credit quality and capital deployment is set out in the bank's accompanying investor materials and conference call with analysts.
TD's Common Equity Tier 1 capital ratio was 14.3% at the end of the quarter.
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