Canada’s Office of the Superintendent of Financial Institutions approved TD Bank Group’s new share buyback programme on 8 October. The bank can repurchase for cancellation up to C$10 billion of common shares, subject to a limit of 61 million shares. TD said the programme would commence on 9 October. The approval converted its previously conditional plan into an active capital-return programme.
TD announced its intention on 30 September, when regulatory approval was still outstanding. It said then that it intended to complete the new buyback by July 2027. The bank had finished a separate C$7 billion repurchase on 25 September, acquiring 47.2 million shares. The 8 October decision therefore represented a new regulatory milestone rather than a restatement of the earlier plan.
BUYBACK MOVES INTO EXECUTION
The 61 million-share ceiling represented up to 3.74% of TD’s 1.633 billion common shares outstanding at 31 August. TD said it would begin the programme under its existing Toronto Stock Exchange normal course issuer bid. It then intended to seek Toronto Stock Exchange approval for a new issuer bid to continue the repurchases.
Purchases may occur on the Toronto and New York stock exchanges or other designated Canadian and United States markets. TD said shares would be bought at market prices, or another price permitted by the Toronto Stock Exchange, and cancelled. Regulatory approval allows the programme to proceed but does not require TD to purchase the full authorised amount.
CAPITAL POSITION SUPPORTS RETURN PLAN
At 31 July, TD reported a common equity tier one ratio of 14.26% and a total capital ratio of 17.90%. The bank also reported C$2.1 trillion in assets and 28.2 million clients. The scale of the authorised repurchase makes execution and capital-ratio effects relevant for shareholders and regulators.
The next milestones are TD’s disclosure of actual purchases and any Toronto Stock Exchange approval for a successor issuer bid. The pace of repurchases will determine how much of the C$10 billion authorisation is used before the bank’s stated July 2027 completion target.