TLDR
- TD Bank reported Q3 2025 profit of $3.34B, reversing last year’s loss.
- Adjusted EPS came in at $2.20, above analyst forecasts of $2.05.
- Revenue rose to $15.3B, supported by Canadian personal, wealth, and wholesale banking.
- Loan loss provisions dropped to $971M, below estimates of $1.21B.
- Shares declined 3.9% despite 36.9% year-to-date gains.
The Toronto-Dominion Bank (TSX: TD.TO) opened trading at C$100.93 on August 28, 2025, down 3.89% despite reporting stronger-than-expected third-quarter results.
The Toronto-Dominion Bank (TD.TO)
The bank posted a profit of C$3.34 billion, or C$1.89 per diluted share, compared with a loss of C$181 million, or 14 cents per share, in the same quarter last year. Adjusted earnings reached C$2.20 per diluted share, beating analyst expectations of C$2.05.
Strong Revenue and Segment Growth
Revenue for the third quarter totaled C$15.3 billion, up from C$14.2 billion a year earlier. The Canadian personal and commercial banking division generated C$1.95 billion in net income, a 4% increase year over year, reflecting healthy lending and deposit activity. Wealth Management and Insurance contributed C$703 million in profit, up 63%, while wholesale banking posted C$398 million, marking a 26% jump.
TD Bank CEO Raymond Chun emphasized the importance of client activity and operational discipline, noting, “We are well positioned to build on this momentum as we compete, grow and build our bank for the future.”
Loan Loss Provisions and Credit Outlook
The bank’s provisions for credit losses totaled C$971 million, down from C$1.07 billion a year ago and below analyst forecasts of C$1.21 billion. Lower-than-expected reserves reflected improving macroeconomic conditions and reduced pressure from U.S.-Canada trade tensions.
Still, TD remains cautious. CFO Kelvin Tran noted ongoing uncertainty around trade negotiations, particularly in sectors such as automotive, agriculture, and manufacturing. TD’s loans to these industries amount to C$87 billion, with C$600 million in reserves built specifically for these exposures.
Peer Comparison and Broader Context
TD was not alone in outperforming expectations. CIBC also beat forecasts, earning C$2.16 per share against an estimate of C$2.00, driven by domestic banking and capital markets strength. Analysts noted that CIBC’s earnings quality was enhanced by business growth rather than just reduced provisions.
Meanwhile, TD continues to face regulatory scrutiny in its U.S. platform, which remains under an asset cap following penalties for money laundering compliance issues. Progress has been made, but this segment came in slightly below analyst expectations.
Market and Performance Overview
Despite solid earnings, TD’s shares slipped 3.9% after results, reflecting investor caution over trade-related risks and U.S. regulatory constraints. Still, performance has been strong year to date, with TD shares up 36.9% compared to the S&P 500’s 10.2%. Over one year, the stock has risen 32.3%, while longer-term returns include a 34.2% three-year gain and a 91.9% five-year increase, outpacing the benchmark index.
TD Bank’s results highlight the resilience of Canada’s banking sector, supported by diversified operations, disciplined risk management, and strong client engagement. While macroeconomic and trade uncertainties remain, the bank enters the final quarter of fiscal 2025 in a position of strength.
