TD Bank Group said it intended to repurchase up to C$10 billion of its common shares, subject to approval from Canada's Office of the Superintendent of Financial Institutions. The programme would cover no more than 61 million shares. TD plans to complete it by July 2027. All shares bought under the programme would be cancelled.
The proposal follows TD's completion on 25 September of a C$7 billion repurchase covering 47.2 million shares. That earlier programme operated under the bank's existing Toronto Stock Exchange normal course issuer bid, which began on 20 January. TD said the existing bid may remain in effect until its scheduled expiry on 15 January 2027.
CAPITAL DISTRIBUTION
The new cap represents as much as 3.74% of the 1.633 billion common shares TD reported outstanding on 31 August. The bank said it would begin the programme under its existing issuer bid before seeking a new TSX bid for the remaining purchases. That later phase would also require TSX approval.
Purchases may take place on the Toronto and New York stock exchanges or other designated markets in Canada and the United States. TD said the price would be the prevailing market price, or another price permitted by the TSX.
REGULATORY CONDITIONS
TD reported a common equity Tier 1 ratio of 14.26% at 31 July, alongside a 16.12% Tier 1 ratio and a 17.90% total capital ratio. The bank's disclosed leverage ratio was 4.55%.
The next concrete milestone is OSFI's decision on the new buyback, followed by TSX approval for the proposed successor issuer bid. Actual purchases will depend on those approvals, market prices and applicable securities rules.