Canada's TD Bank Q4 adjusted EPS beats estimates on wealth management boost

Toronto-Dominion Bank

04/12/2025 11:41

Overview

Toronto-Dominion Bank Bank Q4 revenue beats analyst expectations, adjusted EPS also exceeds estimates

Reported net income for Q4 declines 10% yr/yr, adjusted net income rises 22%

Canadian Personal and Commercial Banking reports record revenue and loan volumes

Outlook

TD targets ~13% adjusted ROE for fiscal 2026

TD aims for 6-8% Y/Y adjusted EPS growth in 2026

TD plans to invest in digital capabilities to support growth

Result Drivers

CANADIAN BANKING GROWTH - Record revenue and loan volumes in Canadian Personal and Commercial Banking contributed to strong Q4 results

U.S. RETAIL MOMENTUM - U.S. Retail net income rose 31% yr/yr, driven by balance sheet restructuring and lower provisions for credit losses

WEALTH MANAGEMENT BOOST - Record Wealth earnings and lower catastrophe claims in Insurance drove a C$350 million yr/yr increase in net income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$15.49 bln
C$13.97 bln (2 Analysts)
Q4 Adjusted Revenue
C$16.03 bln
Q4 Adjusted EPS
Beat
C$2.18
C$2.01 (11 Analysts)
Q4 EPS
C$1.82
Q4 Adjusted Net Income
C$3.91 bln
Q4 Net Income
C$3.28 bln
Q4 Net Interest Income
C$8.55 bln
Q4 CET1 Capital Ratio
14.70%
Q4 Credit Loss Provision
C$982 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Toronto-Dominion Bank is C$120.00, 1.95% above its December 3 closing price of C$117.70

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNW7c151a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)