Canada's second largest bank The Toronto-Dominion Bank (TD), commmonly called the TD Bank, reported Thursday a rise in profit for the third quarter on a 21% growth in earnings from retail banking and lower provisions for credit losses.
For the third quarter, Toronto-Dominion Bank's net income available to common shareholders rose to C$1.12 billion from C$0.86 billion a year ago. On a per-share basis, earnings for the quarter rose to C$1.29 per share from C$1.01 per share in the year-ago period.
Adjusted net income available to common shareholders was almost flat for the quarter at C$1.255 billion. On a per-share basis, adjusted earnings dropped to C$1.43 per share on 875.1 million shares outstanding from C$1.47 per share on 855.4 million shares a year ago.
The company noted that total adjusted retail earnings hit a new high of $1.3 billion, up 21% from last year.
Ed Clark, chief executive officer of the company, said, "Canadian Personal and Commercial banking posted another record quarter - its third in a row - and our U.S. Personal and Commercial Banking operations also reported the highest level of adjusted earnings since we entered this market."
He also said, "Wholesale Banking earnings continued to normalize, performing in line with expectations despite tougher markets in the quarter. We also saw the best credit quality and lowest credit losses in seven quarters across all of our businesses."
Total revenue for the quarter grew to C$4.744 billion from C$4.667 billion last year. Net interest income rose to C$2.921 billion from C$2.833 billion. Non-interest income declined slightly to C$1.823 billion from C$1.834 billion a year ago.
Provision for credit losses decreased sharply to C$339 million from C$557 million last year. As a percentage of net average loans, provisions dropped to 0.51% for the quarter from 0.87% last year.
In the immediately preceding second quarter, the company reported a profit that more than doubled from last year, reflecting higher earnings across all the business segments and the lower loan losses.
Going forward, the company expects Canadian Personal and Commercial Banking revenue growth to moderate as volume growth is expected to be lower across most products and competitive pricing environment continuing to put margins under pressure.
According to the company, the outlook for wealth management segment is cautiously optimistic, dependent on a gradual rise in interest rates and stability in equity markets. Wholesale banking market conditions are expected to remain challenging in the short term.
TD last traded on the NYSE at $68.55. Over the past year, the stock traded in a range of $56.60 - $77.57.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.