TD Bank (NYSE: TD) reports record adjusted profit and strong Q1 2026 growth
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
TD Bank Group reported strong results for the first quarter ended January 31, 2026. Reported net income was
Canadian Personal and Commercial Banking delivered record revenue of
Wealth Management and Insurance earned
Positive
- None.
Negative
- None.
Insights
TD posts record adjusted earnings with solid capital while absorbing restructuring and compliance costs.
TD Bank Group delivered adjusted net income of
Asset quality remained manageable, with total provisions for credit losses of
At the same time, expenses are elevated by governance and control investments, including U.S. BSA/AML remediation, and by restructuring charges of
FORM
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
______________________________
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February,
Commission File Number:
______________________________
The Toronto-Dominion Bank
(Translation of registrant's name into English)
______________________________
,
,
,
,
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F
☐
☑
This Form 6-K, excluding Exhibit 99.4, Exhibit 99.5 and Exhibit 99.6 hereto, is incorporated by reference into all outstanding Registration Statements of The Toronto-
Dominion Bank filed with the U.S. Securities and Exchange Commission.
EXHIBIT INDEX
Exhibit
Description
99.1
1
st
Quarter 2026 Report to Shareholders
99.2
Earnings Coverage
99.3
Return on Assets and Equity to Assets Ratio
99.4
Q1 2026 Earnings News Release
99.5
Q1 2026 Dividend News Release
99.6
CEO and CFO Certificates
101
Interactive Data File (formatted as Inline XBRL)
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
FORM 6-K
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
THE TORONTO-DOMINION BANK
DATE: February 26, 2026
By:
/s/ Sue-Anne Fox
Name:
Sue-Anne Fox
Title:
Associate Vice President, Legal, Treasury and
Corporate Securities
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 1
1
2
3
4
TD Bank Group Reports First Quarter 2026 Results
Report to Shareholders
Three months ended January 31, 2026
The financial information in this document is reported in Canadian dollars and is based on the Bank’s unaudited Interim Consolidated Financial Statements
prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless
otherwise noted. Certain comparative amounts have been revised to conform with the presentation adopted in the current period.
Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures.
For additional information about the Bank’s use of non-GAAP financial measures, refer to “Significant Events”, “Non-GAAP and Other Financial Measures” in the
“How We Performed”, or “How Our Businesses Performed” sections of this document.
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter last year:
●
Reported diluted earnings per share were $2.34, compared with $1.55.
●
Adjusted diluted earnings per share were $2.44, compared with $2.02.
●
Reported net income was $4,043 million, compared with $2,793 million.
●
Adjusted net income was $4,216 million, compared with $3,623 million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first quarter reported earnings figures included the following items of note:
●
Amortization of acquired intangibles of $34 million ($26 million after tax or 1 cent per share), compared with $61 million ($52 million after tax or
3 cents per share) in the first quarter last year.
●
Impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $44 million ($32 million after tax or
2 cents per share), compared with $54 million ($41 million after tax or 2 cents per share) in the first quarter last year.
●
Restructuring charges of $200 million ($148 million after tax or 9 cents per share).
●
Federal Deposit Insurance Corporation (FDIC) special assessment of ($44) million (($33) million after tax or (2) cents per share).
TORONTO
, February 26, 2026 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ended January 31, 2026. Reported
earnings were $4.0 billion, up 45% compared with the first quarter last year, and adjusted earnings were $4.2 billion, up 16%.
“TD delivered strong first quarter results, including record adjusted earnings and significant year
‑
over
‑
year adjusted return on equity growth, reflecting momentum
across our businesses as we advance our Investor Day goals. We achieved robust trading and fee income growth in our markets-driven businesses, volume
growth in Canadian Personal and Commercial Banking, and margin expansion,” said Raymond Chun, Group President and CEO, TD Bank Group. “Across TD, our
colleagues are driving deeper relationships, helping us build a simpler and faster bank, with disciplined execution.”
Canadian Personal and Commercial Banking delivered record revenue, earnings, deposit and loan volumes
Canadian Personal and Commercial Banking net income was a record $2,044 million, an increase of 12% compared with the first quarter last year, reflecting
higher pre-tax, pre-provision earnings (PTPP)
,
,
an increase of 7% year-over-year, and lower provisions for credit losses (PCL). Revenue was a record
$5,421 million, an increase of 5% year-over-year, primarily reflecting increased loan and deposit volumes.
Canadian Personal Banking made significant progress in deepening client relationships, achieving its highest quarterly credit card acquisitions in over a decade,
driven by record existing client pre-approvals and new client credit card deepening rates. In addition, the business also delivered simpler and faster client and
colleague experiences with the national expansion of its Branch Virtual Assistant, a GenAI Knowledge Management tool, and the initial scaling of an agentic AI
capability in Real Estate Secured Lending to accelerate speed-to-decision. Canadian Business Banking delivered strong loan and non-term deposit growth this
quarter, supported by continued expansion of its distribution footprint. Small Business Banking also saw continued growth in chequing accounts, driven by
compelling client offers and strong frontline engagement.
U.S. Banking sustained business momentum and executed against critical deliverables
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $897 million (US$642 million) year-over-year. On an adjusted basis, net
income was $1,007 million (US$723 million), an increase of $168 million (US$129 million) year-over-year, reflecting the impact of U.S. balance sheet restructuring
activities and lower PCL, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation and higher employee-
related expenses.
This quarter, U.S. Banking sustained its momentum, supported by growth across core lending portfolios
,
including record Bankcard digital sales and robust year-
over-year growth in client assets within U.S. Wealth. Conversion of the Nordstrom credit card servicing platform has been completed, enhancing scale to support
the U.S. credit card franchise.
Wealth Management and Insurance delivered record earnings and assets reflecting strong contributions from both business lines
Wealth Management and Insurance net income was $757 million, an increase of $77 million year-over-year, driven by record assets, strong transaction revenue
and insurance premiums growth.
1
Reported revenue – Q1 2026: $5,421 million, Q1 2025: $5,149 million. Reported non-interest expenses – Q1 202 6: $2,147 million, Q1 2025: $2,086 million. PTPP – Q1 2026:
$3,274 million, Q1 2025: $3,063 million.
2
document.
3
excludes earnings of $199 million (US$142 million) from the Bank’s investment in The Charles Schwab Corporation in the first quarter last year.
4
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 2
5
6
Wealth Management delivered strong performance in the quarter, with trades per day in TD Direct Investing increasing 10% year-over-year, reflecting the strength
of TD’s comprehensive trading platforms. TD Wealth unified its two discretionary businesses within Private Wealth Management, simplifying the business and
positioning it for scalable growth. This quarter, TD Insurance continued to strengthen its position as Canada’s leading digital, direct insurer
,
,
with 80% of clients
digitally engaged. TD Insurance issued another innovative catastrophe bond, the first in the Canadian market to provide protection against aggregate losses from
small and medium-sized catastrophe events.
Wholesale Banking delivered record revenue and earnings
Wholesale Banking reported net income of $561 million for the quarter, an increase of $262 million year-over-year, primarily reflecting higher revenues, partially
offset by higher PCL and non-interest expenses. On an adjusted basis, net income was a record $561 million, an increase of $221 million year-over-year. Revenue
for the quarter was a record $2,470 million, an increase of 24% year-over-year, driven by strong execution across Global Markets, and Corporate and Investment
Banking.
TD Securities advanced its strategy by leveraging its integrated platform to deepen client relationships, driving diversified revenue across Global Markets, and
Corporate and Investment Banking. This quarter, TD Securities scaled prime services with the launch of its U.S. and European synthetic prime offering. In addition,
Wholesale Banking maintained disciplined execution, focusing on moderated expense growth and improved return on equity.
Capital
TD’s Common Equity Tier 1 Capital ratio was 14.5%.
Conclusion
“As our clients navigate an increasingly complex landscape, we are investing in talent, technology and new capabilities to support their financial goals. We are
deploying AI-enabled applications across TD, enhancing how we work, and creating new, intuitive and personalized experiences for our clients. Our colleagues
remain the source of our strength, and I thank them for their dedication to our clients and the Bank,” added Chun.
The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 4.
5
6
Columbia, Manitoba Public Insurance, and Saskatchewan Auto Fund).
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 3
ENHANCED DISCLOSURE TASK FORCE
The Enhanced Disclosure Task Force (EDTF) was established by the Financial Stability Board (FSB) in 2012 to identify fundamental disclosure principles,
recommendations and leading practices to enhance risk disclosures of banks. The index below includes the recommendations (as published by the EDTF) and
lists the location of the related EDTF disclosures presented in the first quarter 2026 Report to Shareholders (RTS), Supplemental Financial Information (SFI), or
Supplemental Regulatory Disclosures (SRD). Information on TD’s website, SFI, and SRD is not and should not be considered incorporated herein by reference
into the first quarter 2026 RTS, Management’s Discussion and Analysis, or the Interim Consolidated Financial Statements. Certain disclosure references have
been made to the Bank’s 2025 Annual Report.
Type of
Risk
Topic
EDTF Disclosure
Page
RTS
First
Quarter
2026
SFI
First
Quarter
2026
SRD
First
Quarter
2026
Annual Report
2025
General
1
Present all related risk information together in any particular report.
Refer to below for location of disclosures
2
The bank’s risk terminology and risk measures and present key parameter
values used.
92-99, 103, 108,
110, 112, 123-126
3
Describe and discuss top and emerging risks.
82-91
4
Outline plans to meet each new key regulatory ratio once applicable rules
are finalized.
29, 42
78, 120
Risk
Governance
and Risk
Management
and
Business
Model
5
Summarize the bank’s risk management organization, processes, and key
functions.
93-97
6
Description of the bank’s risk culture and procedures applied to support the
culture.
92-93
7
Description of key risks that arise from the bank’s business models and
activities.
77, 92, 98-127
8
Description of stress testing within the bank’s risk governance and capital
frameworks.
75, 97-98, 106,
123
Capital
Adequacy
and Risk
Weighted
Assets
9
Pillar 1 capital requirements and the impact for global systemically important
banks.
26-29, 73
1-3, 6
72-74, 79, 235
10
Composition of capital and reconciliation of accounting balance sheet to the
regulatory balance sheet.
1-3, 5
72
11
Flow statement of the movements in regulatory capital.
4
12
Discussion of capital planning within a more general discussion of
management’s strategic planning.
73-76, 123
13
Analysis of how risk-weighted asset (RWA) relate to business activities and
related risks.
9-15
76-77
14
Analysis of capital requirements for each method used for calculating RWA.
13
100-101, 103,
105-106
15
Tabulate credit risk in the banking book for Basel asset classes and major
portfolios.
36-53, 59-65
16
Flow statement reconciling the movements of RWA by risk type.
18-19
17
Discussion of Basel III back-testing requirements.
80
102, 106, 110-111
Liquidity
18
The bank’s management of liquidity needs and liquidity reserves.
35-39
112-114, 116 -117
Funding
19
Encumbered and unencumbered assets in a table by balance sheet
category.
37
115, 229
20
Tabulate consolidated total assets, liabilities and off-balance sheet
commitments by remaining contractual maturity at the balance sheet date.
42-44
120-122
21
Discussion of the bank’s funding sources and the bank’s funding strategy.
37-42
118-120
Market Risk
22
Linkage of market risk measures for trading and non-trading portfolio and
balance sheet.
32
104
23
Breakdown of significant trading and non-trading market risk factors.
32, 34
104, 106-108
24
Significant market risk measurement model limitations and validation
procedures.
33
105-108, 110-111
25
Primary risk management techniques beyond reported risk measures and
parameters.
33
105-108
Credit Risk
26
Provide information that facilitates users’ understanding of the bank’s credit
risk profile, including any significant credit risk concentrations.
23-26, 60-66
23-38
1-5, 13, 18,
20-70, 72-80
59-71, 99-103,
184-191, 201,
203-204, 233-234
27
Description of the bank’s policies for identifying impaired loans.
65
68, 160-161, 167-
168, 191
28
Reconciliation of the opening and closing balances of impaired loans in the
period and the allowance for loan losses.
24, 62-64
27, 31
66, 187-189
29
Analysis of the bank’s counterparty credit risks that arise from derivative
transactions.
54-55, 66-70
101, 171-172,
195-197,
201, 203-204
30
Discussion of credit risk mitigation, including collateral held for all sources of
credit risk.
102, 164, 171-172
Other Risks
31
Description of ‘other risk’ types based on management’s classifications and
discuss how each one is identified, governed, measured, and managed.
108-112, 123-127
32
Discuss publicly known risk events related to other risks.
70-71
90-91, 227-229
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 4
TABLE OF CONTENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
4
Caution Regarding Forward-Looking Statements
45
Securitization and Off-Balance Sheet Arrangements
5
Financial Highlights
45
Accounting Policies and Estimates
6
Significant Events
45
Changes in Internal Control over Financial Reporting
6
Update on the Remediation of the U.S. Bank Secrecy Act/Anti-Money
46
Glossary
Laundering Program and Enterprise AML Program
8
How We Performed
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
11
Financial Results Overview
49
Interim Consolidated Balance Sheet
14
How Our Businesses Performed
50
Interim Consolidated Statement of Income
21
Quarterly Results
51
Interim Consolidated Statement of Comprehensive Income
22
Balance Sheet Review
52
Interim Consolidated Statement of Changes in Equity
23
Credit Portfolio Quality
53
Interim Consolidated Statement of Cash Flows
26
Capital Position
54
Notes to Interim Consolidated Financial Statements
30
Risk Factors and Management
30
Managing Risk
74
SHAREHOLDER AND INVESTOR INFORMATION
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING PERFORMANCE
This Management’s Discussion and Analysis (MD&A) is presented to enable readers to assess material changes in the financial condition and operating results of
TD Bank Group (“TD” or the “Bank”) for the three months ended January 31, 2026, compared with the corresponding periods shown. This MD&A should be read in
conjunction with the Bank’s unaudited Interim Consolidated Financial Statements included in this Report to Shareholders and with the 2025 Annual Consolidated
Financial Statements and 2025 MD&A. This MD&A is dated February 25, 2026. Unless otherwise indicated, all amounts are expressed in Canadian dollars and
have been primarily derived from the Bank’s 2025 Annual Consolidated Financial Statements or Interim Consolidated Financial Statements, prepared in
accordance with IFRS as issued by the IASB. Note that certain comparative amounts have been revised to conform with the presentation adopted in the current
period. Additional information relating to the Bank, including the Bank’s 2025 Annual Information Form, is available on the Bank’s website at http://www.td.com as
well as on SEDAR+ at http://www.sedarplus.ca and on the SEC’s website at http://www.sec.gov (EDGAR filers section).
Caution Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and
Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made
pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S.
Private Securities Litigation Reform Act
Forward-looking statements include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis (“2025 MD&A”) in the Bank’s 2025 Annual Report under the heading “Economic
Summary and Outlook”, under the headings “Key Priorities for 2026” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and
Wholesale Banking segments, and under the heading “2025 Accomplishments and Focus for 2026” for the Corporate segment, and in other statements regarding the Bank’s objectives and priorities for 2026 and beyond
and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank’s anticipated financial performance.
Forward-looking statements are typically identified by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “outlook”, “plan”, “goal”, “target”, “possible”, “potential”,
“predict”, “project”, “may”, and “could” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-
looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political,
and regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the effects of which can be difficult to predict – may cause actual results to differ materially from the
expectations expressed in the forward-looking statements.
Risk factors that could cause, individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including
technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, compliance and legal, financial crime, reputational, environmental and
social, and other risks. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates; geopolitical risk (including policy, trade and tax-related risks and the
potential impact of any new or elevated tariffs or any retaliatory tariffs); inflation, interest rates and recession uncertainty; regulatory oversight and compliance risk; risks associated with the Bank’s ability to satisfy the terms
of the global resolution of the investigations into the Bank’s U.S.
Bank Secrecy Act
program on the Bank’s businesses, operations, financial condition, and reputation; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of
acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; technology
and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank’s technologies, systems and networks, those of the Bank’s customers (including their own devices), and third
parties providing services to the Bank; data risk; model risk; fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and
control of information, and other risks arising from the Bank’s use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including without limitation consumer protection laws
and regulations, tax laws, capital guidelines and liquidity regulatory guidance; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and
disruptive technology; environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes in foreign
exchange rates, interest rates, credit spreads and equity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency, the value and market price of the Bank’s common shares and other securities
may be impacted by market conditions and other factors; the interconnectivity of financial institutions including existing and potential international debt crises; increased funding costs and market volatility due to market
illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and
claims resulting from such events.
The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more detailed information, please refer to the “Risk Factors and
Management” section of the 2025 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings
“Significant Events”, “Significant and Subsequent Events” or “Update on U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program Remediation and Enterprise AML Program Improvement Activities“ in the
relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be
considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank’s forward-looking statements.
Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 MD&A under the headings “Economic Summary and Outlook” and “Significant Events”, under
the headings “Key Priorities for 2026” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking segments,
and under the heading “2025 Accomplishments and Focus for 2026” for the Corporate segment, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable).
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s shareholders and analysts in
understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank
does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.
This document was reviewed by the Bank’s Audit Committee and was approved by the Bank’s Board of Directors, on the Audit Committee’s recommendation, prior to its release.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 5
TABLE 1: FINANCIAL HIGHLIGHTS
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Results of operations
Total revenue – reported
$
16,585
$
15,494
$
14,049
Total revenue – adjusted
1
16,629
16,028
15,030
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses (ISE)
1,622
1,602
1,507
Non-interest expenses – reported
8,753
8,808
8,070
Non-interest expenses – adjusted
1
8,563
8,540
7,983
Net income – reported
4,043
3,280
2,793
Net income – adjusted
1
4,216
3,905
3,623
Financial position
(billions of Canadian dollars)
Total loans net of allowance for loan losses
$
958.5
$
953.0
$
965.3
Total assets
2,099.3
2,094.6
2,093.6
Total deposits
1,245.1
1,267.1
1,290.5
Total equity
125.6
127.8
119.0
Total risk-weighted assets
2
635.2
636.4
649.0
Financial ratios
Return on common equity (ROE) – reported
3
13.6
%
10.7
%
10.1
%
Return on common equity – adjusted
1
14.2
12.8
13.2
Return on tangible common equity (ROTCE)
1,3
16.3
12.9
13.4
Return on tangible common equity – adjusted
1
16.9
15.4
17.2
Efficiency ratio – reported
3
52.8
56.8
57.4
Efficiency ratio – adjusted, net of ISE
1,3,4
57.1
59.2
59.0
Provision for (recovery of) credit losses as a % of net
average loans and acceptances
0.43
0.41
0.50
Common share information – reported
(Canadian dollars)
Per share earnings
Basic
$
2.35
$
1.82
$
1.55
Diluted
2.34
1.82
1.55
Dividends per share
1.08
1.05
1.05
Book value per share
3
68.20
68.78
61.61
Closing share price (TSX)
5
127.26
115.16
82.91
Shares outstanding (millions)
Average basic
1,680.3
1,698.2
1,749.9
Average diluted
1,684.7
1,701.5
1,750.7
End of period
1,671.2
1,689.5
1,751.7
Market capitalization (billions of Canadian dollars)
$
212.7
$
194.6
$
145.2
Dividend yield
3
3.5
%
3.9
%
5.4
%
Dividend payout ratio
3
45.9
57.6
67.8
Price-earnings ratio
3
10.3
10.0
17.5
Total shareholder return (1 year)
3
60.0
56.7
6.9
Common share information – adjusted
(Canadian dollars)
1
Per share earnings
Basic
$
2.45
$
2.19
$
2.02
Diluted
2.44
2.18
2.02
Dividend payout ratio
44.0
%
47.9
%
51.9
%
Price-earnings ratio
14.5
13.8
10.6
Capital ratios
2
Common Equity Tier 1 (CET1) Capital ratio
14.5
%
14.7
%
13.1
%
Tier 1 Capital ratio
16.3
16.4
14.7
Total Capital ratio
18.1
18.4
17.0
Leverage ratio
4.5
4.6
4.2
Total Loss Absorbing Capacity (TLAC) ratio
31.1
31.8
29.5
TLAC Leverage ratio
8.6
8.9
8.5
1
accordance with IFRS as the “reported” results. The Bank also utilizes non-GAAP financial measures such as “adjusted” results and non-GAAP ratios to assess each of its businesses
and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for “items of note”. Refer to “Significant Events”, “How We Performed” or “How
Our Businesses Performed” sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures
and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
2
(CAR), Leverage Requirements (LR), and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the “Capital Position” section of this document for further details.
3
4
Q1 2026: $15,007 million, Q4 2025: $14,426 million, Q1 2025: $13,523 million.
5
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 6
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8
SIGNIFICANT EVENTS
Restructuring Charges
The Bank continued to undertake certain measures in the first quarter of 2026 to reduce its cost base and achieve greater efficiency. In connection with this
program, the Bank incurred $200 million pre-tax of restructuring charges for the three months ended January 31, 2026, which primarily related to employee
severance and other personnel-related costs, real estate optimization, and asset impairment and other rationalization, including certain business wind-downs. The
Bank is above its previously disclosed guidance that its restructuring charges in the first quarter of 2026 would be approximately $125 million pre-tax, primarily due
to additional workforce optimization opportunities.
The restructuring program concluded on January 31, 2026, with total program charges of $886 million pre-tax. The Bank expects the program to generate total
pre-tax fully realized annual program savings of approximately $775 million, including savings from an approximate 3% workforce reduction
.
UPDATE ON THE REMEDIATION OF THE U.S. BANK SECRECY ACT/ANTI-MONEY LAUNDERING PROGRAM AND
ENTERPRISE AML PROGRAM
As previously disclosed, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a
resolution (the “Global Resolution”) of previously disclosed investigations related to its U.S. BSA/AML program. The Bank and certain of its U.S. subsidiaries
consented to orders with the Office of the Comptroller of the Currency (“OCC”), the Federal Reserve Board (“FRB”), and the Financial Crimes Enforcement
Network (“FinCEN”) and entered into plea agreements with the Department of Justice (“DOJ”), Criminal Division, Money Laundering and Asset Recovery Section
and the United States Attorney’s Office for the District of New Jersey. The full terms of the consent orders and plea agreements are available on the Bank’s issuer
profile on SEDAR+ at www.sedarplus.com.
The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting the requirements to remediate the Bank’s U.S. BSA/AML
program. In addition, the Bank is also undertaking remediation of the Bank’s enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs (“Enterprise
AML Program”).
For additional information on the risks associated with the remediation of the Bank’s U.S. BSA/AML program and the Bank’s Enterprise AML Program, see the
“Risk Factors That May Affect Future Results – Remediation of the Bank’s U.S. BSA/AML Program and Enterprise AML Program” section of the 2025 MD&A.
Update on the Remediation of the U.S. AML Program
The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. The Bank continues to work on its
management remediation actions (the term “management remediation actions” is not a regulatory definition and is considered by the Bank to consist of the root
cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing and implementation of
controls, as well as the hiring of resources) with significant work and important milestones remaining in calendar 2026 and calendar 2027 including the Suspicious
Activity Report lookback per the OCC consent order which management expects to complete in calendar 2027. For fiscal 2026, the Bank continues to expect U.S.
BSA/AML remediation and related governance and control investments of approximately US$500 million pre-tax. All management remediation actions will be
subject to demonstrated sustainability and validation by the Bank’s internal audit function (with such activities currently planned for calendar 2026 and calendar
2027), as well as the review by the appointed monitor, and, ultimately, the review and approval of the Bank’s U.S. banking regulators and the DOJ. Following such
independent reviews, testing, and validation, there could be additional management remediation actions that would take place after calendar 2027 in which case
the overall remediation timeline may be extended. In addition, as the Bank undertakes the lookback reviews, the Bank may be required to further expand the
scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The following graph illustrates the Bank’s expected
remediation plan and progress on a calendar year basis, based on its work to date:
The Bank’s remediation timeline is based on the Bank’s current plans, as well as assumptions related to the duration of planning activities, including the
completion of external benchmarking and lookback reviews. The Bank’s ability to meet its planned remediation milestones assumes that the Bank will be able to
successfully execute against its U.S. BSA/AML remediation program plan, which is subject to inherent risks and uncertainties including the Bank’s ability to attract
and retain key employees, the ability of third parties to deliver on their contractual obligations, the successful development and implementation of required
technology solutions, and data availability to complete the required lookback reviews. Furthermore, the execution of the U.S. BSA/AML remediation plan, including
these planned milestones, will not be entirely within the Bank’s control because of various factors such as (i) the requirement to obtain regulatory approval or non-
objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators and/or the monitor. As of the
date hereof, the Bank believes that it and its applicable U.S. subsidiaries have taken such actions as are required of them to date under the terms of the consent
orders and plea agreements and is not aware of them being in breach of the same. For information about the Bank’s AML governance framework, see the
“Managing Risk” section of this document.
While substantial work remains, the Bank is making progress on remediating and strengthening its U.S. BSA/AML program as previously disclosed including
continued improvements through:
7
natural attrition, talent re-deployment opportunities, years-of-service, execution timing of actions, and foreign exchange translation impacts. Refer to the “Risk Factors That May Affect
Future Results” section of this document for additional information about risks and uncertainties that may impact the Bank’s estimates.
8
BSA/AML remediation plan which could change as a result of additional findings that are identified as work progresses as well as the Bank’s ability to successfully execute against the
U.S. BSA/AML remediation program in accordance with the U.S. Banking segment’s fiscal 2026 and medium-term plan
.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 7
1)
2)
Bank’s financial crimes risks; and
3)
collection and maintenance of customer information in a single profile resulting in better insights about the Bank’s customers.
Going forward, the Bank’s focus will be on continuing to remediate and strengthen its U.S. BSA/AML program, including:
1)
2)
3)
4)
single source of truth in support of advanced detection capabilities;
5)
6)
Strengthening of the Bank’s Enterprise AML Program
The Bank continues to undertake remediation of the Enterprise AML Program, including a range of management remediation and enhancement actions (the term
“management remediation and enhancement actions” is not a regulatory definition and is considered by the Bank to consist of root cause assessments, data
preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing, and execution of controls, as well as the hiring of
resources). While the Bank has made progress on this remediation work, it is a multi-year endeavour and the remediation work remains ongoing. The timing of
completion of the remediation work will not be entirely within the Bank’s control, and is subject to regulatory feedback, internal review, challenge and validation. As
previously disclosed, following the end of the first quarter of fiscal 2025, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
commenced a review of certain remediation steps that the Bank has taken to date to address the FINTRAC violations. This review is ongoing, and subject to the
outcome, may result in additional regulatory actions.
The remediation and enhancement of the Enterprise AML Program is exposed to similar risks as noted in respect of the remediation of the Bank’s U.S. BSA/AML
Program (see also “Remediation of the U.S. BSA/AML Program” above). In particular, as the Bank continues its remediation and improvement activities of the
Enterprise AML Program, it expects an increase in identification of reportable transactions and/or events, which will add to the operational backlog in the Bank’s
FCRM investigations processing that the Bank currently faces, but is working towards remediating, across the Bank. In addition, on an ongoing basis, the Bank will
continue to review and assess whether issues identified in one jurisdiction have an impact in other jurisdictions. Furthermore, the Bank’s regulators or law
enforcement agencies may identify other issues with the Bank’s Enterprise AML Program, which may result in additional regulatory actions. These issues identified
through the Bank’s own review or by the Bank’s regulators or law enforcement agencies may broaden the scope of the remediation and improvements required for
the Enterprise AML Program.
While substantial work remains, the Bank is making progress on remediating and strengthening the Enterprise AML Program as previously disclosed, including:
1) continued advancement on clearing operational backlogs;
2) completed enhancements to transaction monitoring capabilities, including updates to the customer risk rating methodology; and
3) conducting policy transformation activities to strengthen alignment across FCRM globally.
Going forward, the Bank’s focus will be on continuing to remediate and strengthen its Enterprise AML Program, including:
1)
identified FCRM risks;
2)
3)
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 8
HOW WE PERFORMED
CORPORATE OVERVIEW
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by
assets and serves 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and
Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth
Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD
Cowen. TD also ranks among North America’s leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in
assets on January 31, 2026. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto Stock Exchange and New York Stock Exchange.
HOW THE BANK REPORTS
The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with
IFRS as “reported” results.
Non-GAAP and Other Financial Measures
In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios,
supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as “adjusted” results, are utilized
to assess the Bank’s businesses and to measure the Bank’s overall performance.
To
arrive at adjusted results, the Bank adjusts for “items of note” from reported
results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP
ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted net interest margin, adjusted basic
and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank
believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank’s
performance. Non-GAAP financial measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be
comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank’s financial performance and position, and capital
management measures depict the Bank’s capital position, and both are explained in this document where they first appear.
Investment in The Charles Schwab Corporation (“Schwab”) and Insured Deposit Account (IDA) Agreement
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. The Bank
discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale.
Prior to the sale, the Bank accounted for its investment in Schwab using the equity method. The U.S. Banking segment reflected the Bank’s share of net income
from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and integration
charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab. The Bank’s share of Schwab’s earnings
available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank’s 2025 Annual Consolidated Financial
Statements.
Subsequent to the sale of the Bank’s entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through
the insured deposit account agreement (“Schwab IDA Agreement”).
On May 4, 2023, the Bank and Schwab entered into an amended Schwab IDA Agreement, with an initial expiration of July 1, 2034. Pursuant to the Schwab IDA
Agreement, the Bank makes sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate
obligation amounts. Remaining deposits are designated as floating-rate obligations. The IDA deposit floor is set at US$60 billion.
Refer to Note 26 of the Bank’s 2025 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
The following table provides the operating results on a reported basis for the Bank.
TABLE 2: OPERATING RESULTS – Reported
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
8,789
$
8,545
$
7,866
Non-interest income
7,796
6,949
6,183
Total revenue
16,585
15,494
14,049
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses
1,622
1,602
1,507
Non-interest expenses
8,753
8,808
8,070
Income before income taxes and share of net income from
investment in Schwab
5,171
4,102
3,260
Provision for (recovery of) income taxes
1,128
822
698
Share of net income from investment in Schwab
–
–
231
Net income – reported
4,043
3,280
2,793
Preferred dividends and distributions on other equity instruments
101
191
86
Net income available to common shareholders
$
3,942
$
3,089
$
2,707
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 9
The following table provides a reconciliation between the Bank’s adjusted and reported results. For further details refer to the “Significant Events”, “How We
Performed”, or “How Our Businesses Performed” sections.
TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Operating results – adjusted
Net interest income
1
$
8,833
$
8,594
$
7,920
Non-interest income
2
7,796
7,434
7,110
Total revenue
16,629
16,028
15,030
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses
1,622
1,602
1,507
Non-interest expenses
3
8,563
8,540
7,983
Income before income taxes and share of net income from
investment in Schwab
5,405
4,904
4,328
Provision for (recovery of) income taxes
1,189
999
962
Share of net income from investment in Schwab
4
–
–
257
Net income – adjusted
4,216
3,905
3,623
Preferred dividends and distributions on other equity instruments
101
191
86
Net income available to common shareholders – adjusted
4,115
3,714
3,537
Pre-tax adjustments for items of note
Amortization of acquired intangibles
5
(34)
(34)
(61)
Restructuring charges
3
(200)
(190)
–
Acquisition and integration-related charges
3
–
(44)
(52)
Impact from the terminated FHN acquisition-related capital hedging strategy
1
(44)
(49)
(54)
Balance sheet restructuring
2
–
(485)
(927)
FDIC special assessment
3
44
–
–
Less: Impact of income taxes
Amortization of acquired intangibles
(8)
(8)
(9)
Restructuring charges
(52)
(50)
–
Acquisition and integration-related charges
–
(9)
(11)
Impact from the terminated FHN acquisition-related capital hedging strategy
(12)
(13)
(13)
Balance sheet restructuring
–
(97)
(231)
FDIC special assessment
11
–
–
Total adjustments for items of note
(173)
(625)
(830)
Net income available to common shareholders – reported
$
3,942
$
3,089
$
2,707
1
Q1 2025: ($54) million, reported in the Corporate segment.
2
i.
reported in the Corporate segment.
3
i.
ii.
iii.
iv.
4
i.
5
net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 3 and 4 for amounts.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 10
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE
1
(Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Basic earnings per share – reported
$
2.35
$
1.82
$
1.55
Adjustments for items of note
0.10
0.37
0.47
Basic earnings per share – adjusted
$
2.45
$
2.19
$
2.02
Diluted earnings per share – reported
$
2.34
$
1.82
$
1.55
Adjustments for items of note
0.10
0.36
0.47
Diluted earnings per share – adjusted
$
2.44
$
2.18
$
2.02
1
rounding.
TABLE 5: AMORTIZATION OF INTANGIBLES, NET OF INCOME TAXES
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Schwab
1
$
–
$
–
$
26
Wholesale Banking related intangibles
20
20
21
Other
6
6
5
Included as items of note
26
26
52
Software and asset servicing rights
135
124
119
Amortization of intangibles, net of income taxes
$
161
$
150
$
171
1
Return on Common Equity
The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The
consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted
ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank’s use of equity.
ROE for the business segments is calculated as the segment net income as a percentage of average allocated capital. The Bank’s methodology for allocating
capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated to the business segments was
based on 11.5% of CET1 Capital for the three months ended January 31, 2026.
TABLE 6: RETURN ON COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Average common equity
$
115,250
$
114,939
$
106,133
Net income available to common shareholders – reported
3,942
3,089
2,707
Items of note, net of income taxes
173
625
830
Net income available to common shareholders – adjusted
$
4,115
$
3,714
$
3,537
Return on common equity – reported
13.6
%
10.7
%
10.1
%
Return on common equity – adjusted
14.2
12.8
13.2
Return on Tangible Common Equity
Tangible common equity (TCE) is calculated as common shareholders’ equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and
other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after
adjusting for the after-tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is
calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and
adjusted ROTCE can be utilized in assessing the Bank’s use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP
ratios.
TABLE 7: RETURN ON TANGIBLE COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Average common equity
$
115,250
$
114,939
$
106,133
Average goodwill
18,751
18,814
19,205
Average imputed goodwill and intangibles on
investments in Schwab
–
–
5,116
Average other acquired intangibles
1
339
374
482
Average related deferred tax liabilities
(246)
(230)
(237)
Average tangible common equity
96,405
95,981
81,567
Net income available to common
shareholders – reported
3,942
3,089
2,707
Amortization of acquired intangibles, net of income taxes
26
26
52
Net income available to common shareholders
adjusted for amortization of acquired intangibles,
net of income taxes
3,968
3,115
2,759
Other items of note, net of income taxes
147
599
778
Net income available to common shareholders – adjusted
$
4,115
$
3,714
$
3,537
Return on tangible common equity
16.3
%
12.9
%
13.4
%
Return on tangible common equity – adjusted
16.9
15.4
17.2
1
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 11
9
IMPACT OF FOREIGN EXCHANGE RATE ON U.S. BANKING SEGMENT TRANSLATED EARNINGS
The following table reflects the estimated impact of foreign currency translation on key U.S. Banking segment income statement items. The impact is calculated as
the difference in translated earnings using the average U.S. to Canadian dollars exchange rates in the periods noted.
TABLE 8: IMPACT OF FOREIGN EXCHANGE RATE ON U.S. BANKING TRANSLATED EARNINGS
(millions of Canadian dollars, except as noted)
For the three months ended
January 31, 2026 vs.
January 31, 2025
Increase (Decrease)
U.S. Banking
Total revenue – reported
$
(95)
Total revenue – adjusted
1
(95)
Non-interest expenses – reported
(58)
Non-interest expenses – adjusted
1
(59)
U.S. Banking net income excluding Schwab – reported, after tax
(24)
U.S. Banking net income excluding Schwab – adjusted, after tax
1
(23)
U.S. Banking net income – reported, after tax
(24)
U.S. Banking net income – adjusted, after tax
1
(23)
Earnings (loss) per share
(Canadian dollars)
Basic – reported
$
(0.01)
Basic – adjusted
1
(0.01)
Diluted – reported
(0.01)
Diluted – adjusted
1
(0.01)
Average foreign exchange rate (equivalent of CAD $1.00)
For the three months ended
January 31
January 31
2026
2025
U.S. dollar
$
0.721
$
0.704
1
document.
FINANCIAL RESULTS OVERVIEW
Performance Summary
Outlined below is an overview of the Bank’s performance for the first quarter of 2026. Shareholder performance indicators help guide and benchmark the Bank’s
accomplishments. For the purposes of this analysis, the Bank utilizes adjusted earnings, which excludes items of note from the reported results that are prepared
in accordance with IFRS. Reported and adjusted results and items of note are explained in “Non-GAAP and Other Financial Measures” in the “How We Performed”
section of this document.
●
●
●
average of 38.4%.
Net Income
Quarterly comparison – Q1 2026 vs. Q1 2025
Reported net income for the quarter was $4,043 million, an increase of $1,250 million, or 45%, compared with the first quarter last year, primarily reflecting higher
revenues in the current quarter and the impact of U.S. balance sheet restructuring activities in the first quarter last year, partially offset by higher non-interest
expenses and restructuring charges. On an adjusted basis, net income for the quarter was $4,216 million, an increase of $593 million, or 16%, compared with the
first quarter last year.
By segment, the increase in reported net income reflects increases in U.S. Banking of $698 million, in Wholesale Banking of $262 million, in Canadian Personal
and Commercial Banking of $213 million, and in Wealth Management and Insurance of $77 million.
Quarterly comparison – Q1 2026 vs. Q4 2025
Reported net income for the quarter increased $763 million, or 23%, compared with the prior quarter, primarily reflecting higher revenues in the current quarter and
the impact of U.S. balance sheet restructuring activities in the prior quarter. Adjusted net income for the quarter increased $311 million, or 8%, compared with the
prior quarter.
By segment, the increase in reported net income reflects increases in U.S. Banking of $321 million, in Canadian Personal and Commercial Banking of
$179 million, in the Corporate segment of $138 million, in Wholesale Banking of $67 million, and in Wealth Management and Insurance of $58 million.
Net Interest Income
Quarterly comparison – Q1 2026 vs. Q1 2025
Reported net interest income for the quarter was $8,789 million, an increase of $923 million, or 12%, compared with the first quarter last year, primarily reflecting
volume growth and higher loan margins in Canadian Personal and Commercial Banking, higher revenue from treasury and balance sheet activities, and higher
product margins and the impact of balance sheet restructuring activities in U.S. Banking. On an adjusted basis, net interest income was $8,833 million, an increase
of $913 million, or 12%.
By segment, the increase in reported net interest income reflects increases in the Corporate segment of $363 million, in Canadian Personal and Commercial
Banking of $259 million, in U.S. Banking of $232 million, in Wealth Management and Insurance of $37 million, and in Wholesale Banking of $32 million.
9
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 12
10
Quarterly comparison – Q1 2026 vs. Q4 2025
Reported net interest income for the quarter increased $244 million, or 3%, compared with the prior quarter, primarily reflecting volume growth and higher loan
margins in Canadian Personal and Commercial Banking, an adjustment for client deposit rate in the prior quarter and higher loan margins in the current quarter in
U.S. Banking, and the impact of foreign exchange translation. On an adjusted basis, net interest income increased $239 million, or 3%.
By segment, the increase in reported net interest income reflects increases in U.S. Banking of $131 million, in Canadian Personal and Commercial Banking of
$90 million, in Wealth Management and Insurance of $17 million, and in the Corporate segment of $15 million, partially offset by a decrease in Wholesale Banking
of $9 million.
Non-Interest Income
Quarterly comparison – Q1 2026 vs. Q1 2025
Reported non-interest income for the quarter was $7,796 million, an increase of $1,613 million, or 26%, compared with the first quarter last year, primarily
reflecting the impact of U.S. balance sheet restructuring activities in the first quarter last year, higher trading-related revenue, lending revenue, advisory fees, and
underwriting fees in Wholesale Banking, and higher insurance earned premiums, fee-based revenues from assets growth, and transaction revenue in Wealth
Management and Insurance. On an adjusted basis, non-interest income was $7,796 million, an increase of $686 million, or 10%.
By segment, the increase in reported non-interest income reflects increases in U.S. Banking of $907 million, in Wholesale Banking of $438 million, in Wealth
Management and Insurance of $271 million, and in Canadian Personal and Commercial Banking of $13 million, partially offset by a decrease in the Corporate
segment of $16 million.
Quarterly comparison – Q1 2026 vs. Q4 2025
Reported non-interest income for the quarter increased $847 million, or 12%, compared with the prior quarter, primarily reflecting the impact of U.S. balance sheet
restructuring activities in the prior quarter, higher trading-related revenue in Wholesale Banking, and strong underlying insurance performance and higher fee-
based revenues in Wealth Management and Insurance. On an adjusted basis, non-interest income increased $362 million, or 5%.
By segment, the increase in non-interest income reflects increases in U.S. Banking of $356 million, in Wholesale Banking of $279 million, in Wealth
Management and Insurance of $101 million, in the Corporate segment of $85 million, and in Canadian Personal and Commercial Banking of $26 million.
Provision for Credit Losses
Quarterly comparison – Q1 2026 vs. Q1 2025
PCL for the quarter was $1,039 million, a decrease of $173 million compared with the first quarter last year. PCL – impaired was $1,164 million, a decrease of
$52 million, or 4%, largely reflecting lower provisions in Canadian and U.S. commercial and U.S. consumer lending portfolios, partially offset by higher provisions
in the Wholesale and Canadian consumer lending portfolios. PCL – performing was a recovery of $125 million, compared with a recovery of $4 million in the first
quarter last year. The performing recovery this quarter reflects migration from performing to impaired in the Wholesale and U.S. commercial lending portfolios, and
improvement to the Canadian and U.S. macroeconomic forecasts. Total PCL for the quarter as an annualized percentage of credit volume was 0.43%.
By segment, PCL was lower by $156 million in U.S. Banking, by $85 million in Canadian Personal and Commercial Banking and by $32 million in Corporate
segment, and higher by $100 million in Wholesale Banking.
Quarterly comparison – Q1 2026 vs. Q4 2025
PCL for the quarter was $1,039 million, an increase of $57 million compared with the prior quarter. PCL – impaired was $1,164 million, an increase of $221 million,
or 23%, largely reflecting credit migration in the Wholesale and U.S. commercial lending portfolios related to a small number of impairments across various
industries, partially offset by lower provisions in the Canadian commercial lending portfolio. PCL – performing was a recovery of $125 million, compared with a
build of $39 million in the prior quarter. The performing recovery this quarter reflects migration from performing to impaired in the Wholesale and U.S. commercial
lending portfolios, and improvement to the Canadian and U.S. macroeconomic forecasts. Total PCL for the quarter as an annualized percentage of credit volume
was 0.43%.
By segment, PCL was higher by $148 million in Wholesale Banking and by $19 million in Corporate segment, and lower by $101 million in Canadian Personal
and Commercial Banking and by $9 million in U.S. Banking.
Looking forward, while results may vary by quarter, and are subject to changes to economic conditions, we continue to expect fiscal 2026 PCLs to fall within a
range of 40 to 50 basis points
.
TABLE 9: PROVISION FOR CREDIT LOSSES
1
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Provision for (recovery of) credit losses – Stage 3 (impaired)
Canadian Personal and Commercial Banking
$
424
$
447
$
459
U.S. Banking
394
331
529
Wholesale Banking
216
28
33
Corporate
2
130
137
195
Total provision for (recovery of) credit losses – Stage 3
1,164
943
1,216
Provision for (recovery of) credit losses – Stage 1
and Stage 2 (performing)
Canadian Personal and Commercial Banking
12
90
62
U.S. Banking
(99)
(27)
(78)
Wholesale Banking
(44)
(4)
39
Corporate
2
6
(20)
(27)
Total provision for (recovery of) credit losses – Stage 1
and Stage 2
(125)
39
(4)
Total provision for (recovery of) credit losses
$
1,039
$
982
$
1,212
1
2
10
conditions and performance, such as the level of unemployment, interest rates, economic growth or contraction, and borrower or industry specific credit factors and conditions, inclusive
of policy and trade uncertainty. The Bank’s PCL estimate is subject to risks and uncertainties including those set out in the “Risk Factors and Management” section of this document.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 13
11
Insurance Service Expenses
Quarterly comparison – Q1 2026 vs. Q1 2025
Insurance service expenses for the quarter were $1,622 million, an increase of $115 million, or 8%, compared with the first quarter last year, primarily reflecting
increased claims severity.
Quarterly comparison – Q1 2026 vs. Q4 2025
Insurance service expenses were relatively flat compared with the prior quarter.
Non-Interest Expenses and Efficiency Ratio
Quarterly comparison – Q1 2026 vs. Q1 2025
Reported non-interest expenses were $8,753 million, increased $683 million, or 8%, compared with the first quarter last year, primarily reflecting higher
governance and control investments, including costs for U.S. BSA/AML remediation, restructuring charges, and higher spend supporting business growth
initiatives, including employee-related expenses. On an adjusted basis, non-interest expenses were $8,563 million, an increase of $580 million, or 7%. The Bank
continues to expect fiscal 2026 adjusted expense growth, assuming fiscal 2025 levels of variable compensation, foreign exchange translation, and U.S. strategic
cards portfolio impact, to be at the previously communicated 3% to 4% range, reflecting investments supporting business growth and investments in governance
and control, net of expected productivity and restructuring savings
.
By segment, the increase in reported non-interest expenses reflects increases in the Corporate segment of $421 million, in U.S. Banking of $88 million, in
Wealth Management and Insurance of $85 million, in Canadian Personal and Commercial Banking of $61 million, and in Wholesale Banking of $28 million.
The Bank’s reported efficiency ratio was 52.8%, compared to 57.4% in the first quarter last year. The Bank’s adjusted efficiency ratio, net of ISE was 57.1%,
compared with 59.0% in the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Reported non-interest expenses decreased $55 million, or 1%, compared with the prior quarter, primarily reflecting the expense recovery of the FDIC special
assessment charge. Adjusted non-interest expenses increased $23 million, or relatively flat compared with the prior quarter.
By segment, the decrease in reported non-interest expenses reflect decreases in U.S. Banking of $32 million, in Canadian Personal and Commercial Banking of
$31 million, and in the Corporate segment of $15 million, partially offset by increases in Wealth Management and Insurance of $19 million and in Wholesale
Banking of $4 million.
The Bank’s reported efficiency ratio was 52.8%, compared with 56.8% in the prior quarter. The Bank’s adjusted efficiency ratio, net of ISE was 57.1%,
compared with 59.2% in the prior quarter.
Income Taxes
The Bank’s effective income tax rate on a reported basis was 21.8% for the current quarter, compared with 21.4% in the first quarter last year and 20.0% in the
prior quarter. The year-over-year increase primarily reflects the tax impact of higher reported pre-tax income, partially offset by higher U.S. tax credits and changes
in earnings mix. The quarter-over-quarter increase primarily reflects the tax impact of higher reported pre-tax income in the current quarter and discrete tax
adjustments in the prior quarter, partially offset by higher U.S. tax credits and changes in earnings mix.
To allow for an after-tax calculation of adjusted income, the adjusted provision for income taxes is calculated by adjusting the taxes for each item of note using
the statutory income tax rate of the applicable legal entity. The adjusted effective income tax rate is calculated as the adjusted provision for income taxes as a
percentage of adjusted net income before taxes. The Bank’s adjusted effective income tax rate was 22.0% for the current quarter, compared with 22.2% in the first
quarter last year and 20.4% in the prior quarter. The year-over-year rate is stable, reflecting the impact of higher adjusted pre-tax income, partially offset by higher
U.S. tax credits and changes in earnings mix. The quarter-over-quarter increase primarily reflects the impact of higher adjusted pre-tax income in the current
quarter and discrete tax adjustments in the prior quarter, partially offset by higher U.S. tax credits and changes in earnings mix.
TABLE 10: INCOME TAXES – Reconciliation of Reported to Adjusted Provision for Income Taxes
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Income taxes at Canadian statutory income tax rate
$
1,438
27.8
%
$
1,140
27.8
%
$
906
27.8
%
Increase (decrease) resulting from:
Rate differentials on international operations
1
(276)
(5.3)
(292)
(7.1)
(199)
(6.1)
Other
(34)
(0.7)
(26)
(0.7)
(9)
(0.3)
Provision for income taxes and effective
income tax rate – reported
$
1,128
21.8
%
$
822
20.0
%
$
698
21.4
%
Total adjustments for items of note
61
177
264
Provision for income taxes and effective
income tax rate – adjusted
$
1,189
22.0
%
$
999
20.4
%
$
962
22.2
%
1
11
investments, employee-related expenses, foreign exchange impact, gross-up of the retailer program partners’ share of PCL for the Bank’s U.S. strategic card portfolio (“SCP Impact”),
and productivity and restructuring savings. In particular in estimating its expense growth expectations, the Bank has assumed that the following three factors on the Bank’s fiscal 2026
adjusted expenses will be the same as the Bank’s fiscal 2025 adjusted expenses: (i) variable compensation commensurate with higher revenue, (ii) foreign exchange translation, and (iii)
SCP Impact. For reference, in the first quarter of 2026, variable compensation, foreign exchange translation, and the SCP impact, in the aggregate, accounted for approximately 1% of
the year-over-year 7% increase in adjusted non-interest expenses. The Bank’s assumptions are subject to inherent uncertainties and may vary based on factors both within and outside
the Bank’s control, including the accuracy of the Bank’s employee compensation and benefit expense forecasts, impact of business performance on variable compensation, inflation, the
pace of productivity initiatives across the organization, and unexpected expenses such as legal matters. Refer to the “Risk Factors That May Affect Future Results” section of this
document for additional information about risks and uncertainties that may impact the Bank’s estimates .
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 14
ECONOMIC SUMMARY AND OUTLOOK
The global economy is forecast to slow in calendar 2026 with decelerating cyclical momentum reinforced by trade barriers. The slowdown in global growth is
largely driven by slowing growth in Asia, especially the fast-growing, export-oriented emerging market economies that are affected by U.S. tariffs. Other
economies, such as those in Europe, are seeing a pickup in growth, largely from expectations of higher government spending.
The U.S. economy has entered 2026 with more momentum than was expected a quarter ago. Growth in the second half of calendar 2025 picked up significantly
from a sub-par pace in the first half of the year, buoyed by sustained strength in AI investments and higher consumer spending. TD Economics expects that tax
cuts, lower interest rates and some easing on regulation and trade uncertainty will help sustain solid momentum in the U.S. economy in calendar 2026.
The U.S. labour market has shown signs of stabilizing in recent months, after softening through much of 2025. This led the Federal Reserve to leave the federal
funds rate unchanged at a range of 3.5-3.75% in January. The Federal Reserve is balancing inflation that remains higher than its target with an unemployment rate
above a level it considers consistent with “full employment”. Inflation is expected to cool after the one-time impact of tariffs has passed, which should lead the
Federal Reserve to lower the policy rate further over the coming months to 3.00-3.25%, close to most estimates of a “neutral” level. But the pace of interest rate
cuts will depend on the evolution of the job and inflation data.
Canada’s economy continues to grow at a modest pace. U.S. import tariffs have weighed on growth both directly through lower exports and indirectly through
the resulting uncertainty, which has weakened business and consumer confidence about the future. Job growth has also slowed in line with the economy.
However, slower population growth has depressed labour force growth, pushing the unemployment rate lower in recent months despite a generally soft economic
backdrop. New federal defense and infrastructure spending, an improvement in the housing market and firmer business investments are expected to drive a
modestly stronger growth picture in 2026.
The Canadian central bank left its overnight rate steady at 2.25% in December and January, after lowering its policy rate substantially since mid-2024. Provided
inflation evolves in line with the Canadian central bank’s current forecast, the overnight rate is expected to remain unchanged over the next several quarters. A
generally weaker U.S. dollar and a smaller gap between U.S. and Canadian short-term interest rates are expected to lift the Canadian dollar. TD Economics
expects the Canadian dollar to appreciate to the 73-74 U.S. cent range by mid-2026, although it is likely to be influenced by U.S. trade policy.
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank’s business operations and activities are organized around the following four key business segments: Canadian
Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the
Corporate segment.
Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank
measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is
adjusted. For further details, refer to the “How We Performed” section of this document, the “Business Focus” section in the Bank’s 2025 MD&A, and Note 27 of
the Bank’s Annual Consolidated Financial Statements for the year ended October 31, 2025.
PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the
respective segment.
Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt
income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans
consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for
income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $17 million, compared with
$17 million in the prior quarter and $15 million in the first quarter last year.
The Bank’s U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-
branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by
the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank’s
Interim Consolidated Statement of Income. At the segment level, the retailer program partners’ share of revenues and credit losses is presented in the Corporate
segment, with an offsetting amount (representing the partners’ net share) recorded in non-interest expenses, resulting in no impact to Corporate’s reported net
income (loss). The net income included in the U.S. Banking segment includes only the portion of revenue and credit losses attributable to TD under the
agreements.
Effective the first quarter of 2026, non-interest income within U.S. Banking is adjusted for the Bank’s share of losses from community-based tax-advantaged
investments accounted for using the equity method which are reclassified to provision for income taxes. This allows the Bank to measure the effective tax rate for
U.S. Banking consistently with similar institutions. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results is
reversed in the Corporate segment. Comparative amounts have been reclassified to conform with the presentation adopted in the current period.
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Prior to the sale, the Bank accounted for its investment in Schwab using
the equity method and the share of net income from investment in Schwab was reported in the U.S. Banking segment. Amounts for amortization of acquired
intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab
were recorded in the Corporate segment. Beginning in the third quarter of fiscal 2025, the U.S. Banking segment no longer includes contributions from Schwab
and consequently discussions of the U.S. Banking segment’s performance exclude Schwab.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 15
12
TABLE 11: CANADIAN PERSONAL AND COMMERCIAL BANKING
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
4,394
$
4,304
$
4,135
Non-interest income
1,027
1,001
1,014
Total revenue
5,421
5,305
5,149
Provision for (recovery of) credit losses – impaired
424
447
459
Provision for (recovery of) credit losses – performing
12
90
62
Total provision for (recovery of) credit losses
436
537
521
Non-interest expenses
2,147
2,178
2,086
Provision for (recovery of) income taxes
794
725
711
Net income
$
2,044
$
1,865
$
1,831
Selected volumes and ratios
Return on common equity
1
32.1
%
30.4
%
31.4
%
Net interest margin (including on securitized assets)
2
2.83
2.82
2.81
Efficiency ratio
39.6
41.1
40.5
Number of Canadian retail branches at period end
1,043
1,051
1,063
Average number of full-time equivalent staff
3
33,660
33,325
32,253
1
2
GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the Glossary of this document for additional information about
these metrics.
3
The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.
Quarterly comparison – Q1 2026 vs. Q1 2025
Canadian Personal and Commercial Banking net income for the quarter was $2,044 million, an increase of $213 million, or 12%, compared with the first quarter
last year, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses. The annualized ROE for the quarter was 32.1%, compared
with 31.4% in the first quarter last year.
Revenue for the quarter was $5,421 million, an increase of $272 million, or 5%, compared with the first quarter last year. Net interest income was $4,394 million,
an increase of $259 million, or 6%, primarily reflecting volume growth and higher loan margins. Average loan volumes increased $32 billion, or 5%, reflecting 5%
growth in personal loans and 6% growth in business loans. Average deposit volumes increased $16 billion, or 3%, reflecting 3% growth in personal deposits and
5% growth in business deposits. Net interest margin was 2.83%, an increase of 2 basis points (bps), primarily due to higher margins on loans, partially offset by
changes in balance sheet mix. Non-interest income was $1,027 million, an increase of $13 million, or 1%.
PCL for the quarter was $436 million, a decrease of $85 million compared with the first quarter last year. PCL – impaired was $424 million, a decrease of
$35 million, or 8%, largely reflecting lower provisions in the commercial lending portfolio, partially offset by credit migration in the consumer lending portfolios and
volume growth. PCL – performing was $12 million, a decrease of $50 million compared with the first quarter last year. The performing provisions this quarter were
largely related to credit migration in the consumer lending portfolio and volume growth, partially offset by the impact of a model update in the other personal
lending portfolio and an improvement to the macroeconomic forecast. Total PCL as an annualized percentage of credit volume was 0.28%, a decrease of 7 bps
compared with the first quarter last year.
Non-interest expenses for the quarter were $2,147 million, an increase of $61 million, or 3%, compared with the first quarter last year, primarily reflecting higher
employee-related expenses.
The efficiency ratio for the quarter was 39.6%, compared with 40.5% in the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Canadian Personal and Commercial Banking net income for the quarter was $2,044 million, an increase of $179 million, or 10%, compared with the prior quarter,
primarily reflecting higher revenue, lower PCL and lower non-interest expenses. The annualized ROE for the quarter was 32.1%, compared with 30.4% in the prior
quarter.
Revenue increased $116 million, or 2%, compared with the prior quarter. Net interest income increased $90 million, or 2%, reflecting volume growth and higher
loan margins. Average loan volumes increased $9 billion, or 1%, reflecting 1% growth in personal loans and 2% growth in business loans. Average deposit
volumes increased $6 billion, or 1%, reflecting 1% growth in personal deposits and 2% growth in business deposits. Net interest margin was 2.83%, an increase of
1 basis point (bp), primarily due to higher margins on loans. As we look forward to the second quarter, we expect net interest margin to be relatively stable
.
interest income increased $26 million, or 3%, compared with the prior quarter, reflecting business growth.
PCL for the quarter was $436 million, a decrease of $101 million compared with the prior quarter. PCL – impaired was $424 million, a decrease of $23 million, or
5%, largely reflecting lower provisions in the commercial lending portfolio, partially offset by credit migration in the consumer lending portfolios. PCL – performing
was $12 million, a decrease of $78 million compared with the prior quarter. The performing provisions this quarter were largely related to credit migration in the
consumer lending portfolio and volume growth, partially offset by the impact of a model update in the other personal lending portfolio and improvement to the
macroeconomic forecast. Total PCL as an annualized percentage of credit volume was 0.28%, a decrease of 7 bps compared with the prior quarter.
Non-interest expenses decreased $31 million, or 1%, compared with the prior quarter.
The efficiency ratio was 39.6%, compared with 41.1% in the prior quarter.
12
deposit reinvestment rates and maturity profiles, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect Future Results” section of the Bank’s
2025 MD&A and the first quarter 2026 MD&A.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 16
TABLE 12: U.S. BANKING
(millions of dollars, except as noted)
For the three months ended
January 31
October 31
January 31
Canadian Dollars
2026
2025
2025
Net interest income
$
$
$
Non-interest income (loss) – reported
1
(118)
Non-interest income – adjusted
1,2,3
Total revenue – reported
Total revenue – adjusted
2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(99)
(27)
(78)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
2,4
Provision for (recovery of) income taxes – reported
1
(28)
Provision for (recovery of) income taxes – adjusted
1,2
U.S. Banking net income excluding Schwab – reported
U.S. Banking net income excluding Schwab – adjusted
2
Share of net income from investment in Schwab
5,6
–
–
U.S. Banking net income – reported
$
$
$
U.S. Banking net income – adjusted
2
U.S. Dollars
Net interest income
$
$
$
Non-interest income (loss) – reported
1
(82)
Non-interest income – adjusted
1,2,3
Total revenue – reported
Total revenue – adjusted
2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(72)
(18)
(53)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
2,4
Provision for (recovery of) income taxes – reported
1
(20)
Provision for (recovery of) income taxes – adjusted
1,2
U.S. Banking net income excluding Schwab – reported
U.S. Banking net income excluding Schwab – adjusted
2
Share of net income from investment in Schwab
5,6
–
–
U.S. Banking net income – reported
$
$
$
U.S. Banking net income – adjusted
2
Selected volumes and ratios
U.S. Banking return on common equity excluding Schwab – reported
7
%
%
%
U.S. Banking return on common equity excluding Schwab – adjusted
2,7
U.S. Banking return on common equity – reported
7
U.S. Banking return on common equity – adjusted
2,7
Net interest margin
2,8
Efficiency ratio – reported
1
Efficiency ratio – adjusted
1,2
Assets under administration (billions of U.S. dollars)
9
$
$
$
Assets under management (billions of U.S. dollars)
9
Number of U.S. banking stores
Average number of full-time equivalent staff
1
using the equity method which are reclassified to provision for income taxes. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results
is reversed in the Corporate segment. The adjustment for the quarter was $184 million (US$132 million), compared with $145 million (US$105 million) in the prior quarter and $164 million
(US$116 million) in the first quarter last year. Comparative amounts have been reclassified to conform with the presentation adopted in the current period.
2
Glossary of this document.
3
i.
US$489 million after-tax).
4
i.
5
6
7
8
and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is
adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Net interest income and
average interest-earning assets used in the calculation are non-GAAP financial measures.
9
Quarterly comparison – Q1 2026 vs. Q1 2025
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $897 million (US$642 million), compared with the first quarter last year, and
U.S. Banking adjusted net income was $1,007 million (US$723 million), an increase of $168 million (US$129 million), compared with the first quarter last year, both
reflecting the impact of U.S. balance sheet restructuring activities and lower PCL, partially offset by higher governance and control investments, including costs for
U.S. BSA/AML remediation in the current quarter, and higher employee-related expenses. The reported and adjusted annualized ROE for the quarter were 9.9%
and 9.6%, respectively, compared with 1.3% and 7.5%, respectively, in the first quarter last year.
Reported and adjusted revenue for the quarter was US$2,941 million, an increase of US$863 million, or 42%, on a reported basis, and an increase of
US$211 million, or 8%, on an adjusted basis, compared with the first quarter last year. Net interest income of US$2,372 million, increased US$212 million, or 10%,
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 17
13
14
15
largely reflecting higher product margins and the impact of U.S. balance sheet restructuring activities. Net interest margin of 3.38%, increased 52 bps, due to
higher product margins, the impact of U.S. balance sheet restructuring activities, and the normalization of elevated liquidity levels (which positively impacted net
interest margin by 19 bps). Reported and adjusted non-interest income was US$569 million, an increase of US$651 million, on a reported basis, compared with
the first quarter last year, reflecting the impact of U.S. balance sheet restructuring activities in the first quarter last year. On an adjusted basis, non-interest income
was relatively flat compared with the first quarter last year.
Average loan volumes decreased US$18 billion, or 9%, compared with the first quarter last year. Personal loans decreased 7% and business loans decreased
11%, reflecting U.S. balance sheet restructuring activities. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet
restructuring program, core average loan volumes increased US$3 billion, or 2%
,
. Average deposit volumes decreased US$14 billion, or 4%, reflecting a 13%
decrease in sweep deposits, a 2% decrease in personal deposits, and a 1% decrease in business deposits.
Assets under administration (AUA) were US$47 billion as at January 31, 2026, an increase of US$4 billion, or 9%, compared with the first quarter last year, and
assets under management (AUM) were US$11 billion as of January 31, 2026, an increase of US$2 billion, or 22%, compared with the first quarter last year, both
reflecting net asset growth and market appreciation.
PCL for the quarter was US$212 million, a decrease of US$106 million compared with the first quarter last year. PCL – impaired was US$284 million, a decrease
of US$87 million, or 23%, reflecting lower provisions in both the consumer and commercial lending portfolios. PCL – performing was a recovery of US$72 million,
compared with a recovery of US$53 million in the first quarter last year. The performing recovery this quarter largely reflects an improvement to the
macroeconomic forecast and migration from performing to impaired in the commercial lending portfolio. U.S. Banking PCL including only the Bank’s share of PCL
in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.49%, a decrease of 18 bps compared with the first quarter last year.
Reported non-interest expenses for the quarter were US$1,778 million, an increase of US$103 million, or 6%, compared to the first quarter last year, reflecting
higher governance and control investments including costs of US$148 million for U.S. BSA/AML remediation, and higher employee-related expenses, partially
offset by the expense recovery of the FDIC special assessment charge. Adjusted non-interest expenses for the quarter were US$1,810 million, an increase of
US$135 million, or 8%, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher employee-related
expenses.
The reported and adjusted efficiency ratios for the quarter were 60.5% and 61.5%, respectively, compared with 80.6% and 61.4%, respectively, in the first
quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $321 million (US$227 million), or 45% (44% in U.S. dollars), compared with
the prior quarter, primarily reflecting the impact of U.S. balance sheet restructuring activities in the prior quarter, an adjustment for client deposit rates in the prior
quarter, and the expense recovery of the FDIC special assessment charge in the current quarter, partially offset by higher employee-related expenses and lower
fee income. U.S. Banking adjusted net income was $1,007 million (US$723 million), relatively flat compared to the prior quarter, primarily reflecting higher
employee-related expenses and lower fee income, largely offset by an adjustment for client deposit rates in the prior quarter. The reported and adjusted
annualized ROE for the quarter were 9.9% and 9.6%, respectively, compared with 6.7% and 9.3%, respectively, in the prior quarter.
Reported and adjusted revenue for the quarter was US$2,941 million, an increase of US$345 million, or 13%, on a reported basis, and an increase of
US$71 million, or 2%, on an adjusted basis, compared with the prior quarter. Net interest income of US$2,372 million, increased US$91 million, or 4%, largely
reflecting an adjustment for client deposit rate in the prior quarter and higher loan margins in the current quarter. Reported net interest margin of 3.38%, increased
13 bps, due to an adjustment for client deposit rates in the prior quarter and higher loan margins from improved product mix. Net interest margin is expected to
modestly increase
in the second quarter of fiscal 2026
. Reported and adjusted non
-
interest income was US$569 million, an increase of US$254
million, or 81%,
on a reported basis, reflecting the impact of U.S. balance sheet restructuring activities in the prior quarter, partially offset by lower fee income. On an adjusted
basis, non-interest income decreased US$20 million, or 3%, reflecting lower fee income.
Average loan volumes decreased US$2 billion, or 1%, compared with the prior quarter, reflecting a 3% decrease in business loans, partially offset by a 1%
increase in personal loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, core
average loan volumes increased US$1 billion, or 1%
13
,14
. Average deposit volumes decreased US$5 billion, or 2%, compared with the prior quarter, reflecting a 5%
decrease in sweep deposits. Personal deposits and business deposits are relatively flat compared to the prior quarter.
AUA were US$47 billion as at January 31, 2026, an increase of US$1 billion, or 2%, compared with the prior quarter, and AUM were US$11 billion as at
January 31, 2026, an increase of US$1 billion or 10%, compared with the prior quarter, both reflecting net asset growth and market appreciation.
PCL for the quarter was US$212 million, a decrease of US$8 million compared with the prior quarter. PCL – impaired was US$284 million, an increase of
US$46 million, or 19%, largely reflecting higher provisions in the commercial lending portfolio. PCL – performing was a recovery of US$72 million, compared with a
recovery of US$18 million in the prior quarter. The performing recovery this quarter largely reflects an improvement to the macroeconomic forecast and migration
from performing to impaired in the commercial lending portfolio. U.S. Banking PCL including only the Bank’s share of PCL in the U.S. strategic cards portfolio, as
an annualized percentage of credit volume was 0.49%, a decrease of 1 bp compared with the prior quarter.
Reported non-interest expenses for the quarter were US$1,778 million, a decrease of US$23 million, or 1%, compared with the prior quarter, reflecting the
expense recovery of the FDIC special assessment charge, partially offset by higher employee-related expenses. Adjusted non-interest expenses for the quarter
were US$1,810 million, an increase of US$9 million, compared with the prior quarter, reflecting higher employee-related costs.
The reported and adjusted efficiency ratios for the quarter were 60.5% and 61.5%, respectively, compared with 69.4% and 62.8%, respectively, in the prior
period.
Following the end of the first quarter of fiscal 2026, the Bank completed the conversion of its Nordstrom credit card portfolio onto the Bank’s servicing platform. The
Bank became the servicer of the portfolio and will receive a greater share of revenue and credit losses. The Bank expects a charge of approximately
US$145 million pre-tax, reflecting an adjustment of amounts to be recovered from Nordstrom for future credit losses, to be recorded as an Item of Note in the
second quarter of fiscal 2026.
13
auto dealer portfolio, and other non-core portfolios. Q1 2026 average loan volumes: US$175 billion (Q4 2025: US$177 billion; Q1 2025: US$192 billion). Q1 2026 average loan volumes
of loan portfolios identified for sale or run-off: US$11 billion (Q4 2025: US$14 billion; Q1 2025: US$32 billion). Q1 2026 average loan volumes excluding loan portfolios identified for sale
or run-off: US$164 billion (Q4 2025: US$163 billion; Q1 2025: US$160 billion).
14
document.
15
execution of planned restructuring opportunities, and other variables, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect
Future Results” section of this document.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 18
TABLE 13: WEALTH MANAGEMENT AND INSURANCE
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
406
$
389
$
369
Non-interest income
3,500
3,399
3,229
Total revenue
3,906
3,788
3,598
Insurance service expenses
1
1,622
1,602
1,507
Non-interest expenses
1,258
1,239
1,173
Provision for (recovery of) income taxes
269
248
238
Net income
$
757
$
699
$
680
Selected volumes and ratios
Return on common equity
45.3
%
43.1
%
42.7
%
Return on common equity – Wealth Management
2
66.3
66.3
61.9
Return on common equity – Insurance
22.7
18.1
21.9
Efficiency ratio
32.2
32.7
32.6
Efficiency ratio, net of ISE
3
55.1
56.7
56.1
Assets under administration (billions of Canadian dollars)
4
$
771
$
759
$
687
Assets under management (billions of Canadian dollars)
610
601
556
Average number of full-time equivalent staff
15,872
15,829
15,176
1
2
3
Q1 2025: $2,091 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the
Glossary of this document for additional information about this metric.
4
Includes
AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment.
Quarterly comparison – Q1 2026 vs. Q1 2025
Wealth Management and Insurance net income for the quarter was $757 million, an increase of $77 million, or 11%, compared with the first quarter last year,
reflecting Wealth Management net income of $574 million, an increase of $62 million, or 12%, compared with the first quarter last year, and Insurance net income
of $183 million, an increase of $15 million, or 9%, compared with the first quarter last year. The annualized ROE for the quarter was 45.3%, compared with 42.7%
in the first quarter last year. Wealth Management annualized ROE for the quarter was 66.3%, compared with 61.9% in the first quarter last year, and Insurance
annualized ROE for the quarter was 22.7% compared with 21.9% in the first quarter last year.
Revenue for the quarter was $3,906 million, an increase of $308 million, or 9%, compared with the first quarter last year. Non-interest income was
$3,500 million, an increase of $271 million, or 8%, reflecting higher insurance earned premiums, fee-based revenues from asset growth, and transaction revenue.
Net interest income was $406 million, an increase of $37 million, or 10%, compared with the first quarter last year, reflecting higher deposit volumes.
AUA were $771 billion as at January 31, 2026, an increase of $84 billion, or 12%, and AUM were $610 billion as at January 31, 2026, an increase of $54 billion,
or 10%, compared with the first quarter last year, both reflecting market appreciation and net asset growth.
Insurance service expenses for the quarter were $1,622 million, an increase of $115 million, or 8%, compared with the first quarter last year, primarily reflecting
increased claims severity.
Non-interest expenses for the quarter were $1,258 million, an increase of $85 million, or 7%, compared with the first quarter last year, reflecting higher variable
compensation commensurate with higher revenue, increased technology investments, and higher employee-related expenses.
The efficiency ratio for the quarter was 32.2%, compared with 32.6% in the first quarter last year. The efficiency ratio, net of ISE for the quarter was 55.1%,
compared with 56.1% in the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Wealth Management and Insurance net income for the quarter was $757 million, an increase of $58 million, or 8%, compared with the prior quarter, reflecting
Wealth Management net income of $574 million, an increase of $17 million, or 3%, compared with the prior quarter, and Insurance net income of $183 million, an
increase of $41 million, or 29%, compared with the prior quarter. The annualized ROE for the quarter was 45.3%, compared with 43.1% in the prior quarter. Wealth
Management annualized ROE for the quarter was 66.3%, flat to the prior quarter, and Insurance annualized ROE for the quarter was 22.7% compared with 18.1%
in the prior quarter.
Revenue increased $118 million, or 3%, compared with the prior quarter. Non-interest income increased $101 million, or 3%, reflecting strong underlying
insurance performance and higher fee-based revenues. Net interest income increased $17 million, or 4%, reflecting higher deposit volumes.
AUA increased $12 billion, or 2%, and AUM increased $9 billion, or 1%, compared with the prior quarter, both reflecting market appreciation.
Insurance service expenses were relatively flat compared with the prior quarter.
Non-interest expenses for the quarter were $1,258 million, an increase of $19 million, or 2%, compared with the prior quarter, primarily reflecting higher variable
compensation commensurate with higher revenue.
The efficiency ratio for the quarter was 32.2%, compared with 32.7% in the prior quarter. The efficiency ratio, net of ISE for the quarter was 55.1%, compared
with 56.7% in the prior quarter.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 19
TABLE 14: WHOLESALE BANKING
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income (loss) (TEB)
$
(75)
$
(66)
$
(107)
Non-interest income
2,545
2,266
2,107
Total revenue
2,470
2,200
2,000
Provision for (recovery of) credit losses – impaired
216
28
33
Provision for (recovery of) credit losses – performing
(44)
(4)
39
Total provision for (recovery of) credit losses
172
24
72
Non-interest expenses – reported
1,563
1,559
1,535
Non-interest expenses – adjusted
1,2
1,563
1,515
1,483
Provision for (recovery of) income taxes (TEB) – reported
174
123
94
Provision for (recovery of) income taxes (TEB) – adjusted
1
174
132
105
Net income – reported
$
561
$
494
$
299
Net income – adjusted
1
561
529
340
Selected volumes and ratios
Trading-related revenue (TEB)
3
$
1,146
$
865
$
904
Average gross lending portfolio (billions of Canadian dollars)
4
93.9
90.0
100.9
Return on common equity – reported
5
12.6
%
11.6
%
7.3
%
Return on common equity – adjusted
1,5
12.6
12.4
8.3
Efficiency ratio – reported
63.3
70.9
76.8
Efficiency ratio – adjusted
1
63.3
68.9
74.2
Average number of full-time equivalent staff
7,334
7,438
6,919
1
Glossary of this document.
2
($41 million after tax).
3
Q1 2025: $1,308 million). Trading-related revenue (TEB) is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and
the Glossary of this document for additional information about this metric.
4
5
Quarterly comparison – Q1 2026 vs. Q1 2025
Wholesale Banking reported and adjusted net income for the quarter were $561 million. Reported net income for the quarter increased $262 million, or 88%,
compared with the first quarter last year, primarily reflecting higher revenues, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net
income increased $221 million, or 65%, compared with the first quarter last year.
Revenue for the quarter was $2,470 million, an increase of $470 million, or 24%, compared with the first quarter last year. Higher revenue primarily reflects
higher trading-related revenue, lending revenue, advisory fees, and underwriting fees, partially offset by the net change in fair value of loan underwriting
commitments.
PCL for the quarter was $172 million, an increase of $100 million compared with the first quarter last year. PCL – impaired was $216 million, an increase of
$183 million compared with the prior year, primarily reflecting a small number of impairments across various industries. PCL – performing was a recovery of
$44 million, compared with a build of $39 million in the prior year. The performing recovery this quarter was driven by migration from performing to impaired.
Reported non-interest expenses for the quarter were $1,563 million, an increase of $28 million, or 2%, compared with the first quarter last year, primarily
reflecting higher operating costs, including technology and front office, spend supporting business growth, and higher variable compensation, partially offset by the
cessation of acquisition and integration-related costs. On an adjusted basis, non-interest expenses were $1,563 million, an increase of $80 million, or 5%.
Quarterly comparison – Q1 2026 vs. Q4 2025
Wholesale Banking reported and adjusted net income for the quarter were $561 million. Reported net income increased $67 million, or 14%, compared with the
prior quarter, primarily reflecting higher revenues, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net income increased
$32 million, or 6%.
Revenue for the quarter increased $270 million, or 12%, compared with the prior quarter. Higher revenue primarily reflects higher trading-related revenue,
lending revenue, and net change in fair value of the equity investment portfolio, partially offset by lower underwriting and advisory fees.
PCL for the quarter was $172 million, an increase of $148 million compared with the prior quarter. PCL – impaired was $216 million, an increase of $188 million,
primarily reflecting a small number of impairments across various industries. PCL – performing was a recovery of $44 million, compared with a recovery of
$4 million in the prior quarter. The performing recovery this quarter was driven by migration from performing to impaired.
Reported non-interest expenses for the quarter increased $4 million, relatively flat compared with the prior quarter, primarily reflecting higher variable
compensation, partially offset by higher acquisition and integration-related costs and higher spend supporting business growth in the prior quarter. On an adjusted
basis, non-interest expenses increased $48 million, or 3%.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 20
TABLE 15: CORPORATE
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net income (loss) – reported
$
(359)
$
(497)
$
(359)
Adjustments for items of note
Amortization of acquired intangibles
34
34
61
Restructuring charges
200
190
–
Impact from the terminated FHN acquisition-related capital hedging strategy
44
49
54
Balance sheet restructuring
–
102
–
Less: impact of income taxes on items of note
72
73
22
Net income (loss) – adjusted
1
$
(153)
$
(195)
$
(266)
Decomposition of items included in net income (loss) – adjusted
Net corporate expenses
1
$
(515)
$
(537)
$
(370)
Other
362
342
104
Net income (loss) – adjusted
1
$
(153)
$
(195)
$
(266)
Selected volumes
Average number of full-time equivalent staff
2
18,098
18,371
17,800
1
Glossary of this document.
2
The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.
Quarterly comparison – Q1 2026 vs. Q1 2025
Corporate segment’s reported net loss for the quarter was $359 million, flat compared with the first quarter last year. The year-over-year net loss primarily reflects
restructuring charges and higher net corporate expenses, largely offset by higher revenue from treasury and balance sheet management activities. Net corporate
expenses increased $145 million compared with the first quarter last year, primarily reflecting continued investments in governance and controls. The adjusted net
loss for the quarter was $153 million, compared with $266 million in the prior year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Corporate segment’s reported net loss for the quarter was $359 million, compared with $497 million in the prior quarter. The lower net loss primarily reflects the
impact of balance sheet restructuring activities in the prior quarter. The adjusted net loss for the quarter was $153 million, compared with $195 million in the prior
quarter.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 21
QUARTERLY RESULTS
The following table provides summary information related to the Bank’s eight most recently completed quarters.
TABLE 16: QUARTERLY RESULTS
(millions of Canadian dollars, except as noted)
For the three months ended
2026
2025
2024
Jan. 31
Oct. 31
Jul. 31
Apr. 30
Jan. 31
Oct. 31
Jul. 31
Apr. 30
Net interest income
$
8,789
$
8,545
$
8,526
$
8,125
$
7,866
$
7,940
$
7,579
$
7,465
Non-interest income
7,796
6,949
6,771
14,812
6,183
7,574
6,597
6,354
Total revenue
16,585
15,494
15,297
22,937
14,049
15,514
14,176
13,819
Provision for (recovery of) credit losses
1,039
982
971
1,341
1,212
1,109
1,072
1,071
Insurance service expenses
1,622
1,602
1,563
1,417
1,507
2,364
1,669
1,248
Non-interest expenses
8,753
8,808
8,522
8,139
8,070
8,050
11,012
8,401
Provision for (recovery of) income taxes
1,128
822
905
985
698
534
794
729
Share of net income from investment in Schwab
–
–
–
74
231
178
190
194
Net income (loss) – reported
4,043
3,280
3,336
11,129
2,793
3,635
(181)
2,564
Pre-tax adjustments for items of note
1
Amortization of acquired intangibles
34
34
33
43
61
60
64
72
Acquisition and integration charges related to the
Schwab transaction
2,3
–
–
–
–
–
35
21
21
Restructuring charges
200
190
333
163
–
–
110
165
Acquisition and integration-related charges
–
44
32
34
52
82
78
102
Impact from the terminated FHN acquisition-related
capital hedging strategy
44
49
55
47
54
59
62
64
Gain on sale of Schwab shares
4
–
–
–
(8,975)
–
(1,022)
–
–
Balance sheet restructuring
5
–
485
262
1,129
927
311
–
–
Indirect tax matters
2,5
–
–
–
–
–
226
–
–
Civil matter provision
2
–
–
–
–
–
–
–
274
FDIC special assessment
(44)
–
–
–
–
(72)
–
103
Global resolution of the investigations into the
Bank’s U.S. BSA/AML program
2
–
–
–
–
–
52
3,566
615
Total pre-tax adjustments for items of note
1
234
802
715
(7,559)
1,094
(269)
3,901
1,416
Less: Impact of income taxes
61
177
180
(56)
264
161
74
191
Net income – adjusted
1
4,216
3,905
3,871
3,626
3,623
3,205
3,646
3,789
Preferred dividends and distributions on other
equity instruments
101
191
88
200
86
193
69
190
Net income available to common
shareholders – adjusted
1
$
4,115
$
3,714
$
3,783
$
3,426
$
3,537
$
3,012
$
3,577
$
3,599
(Canadian dollars, except as noted)
Basic earnings (loss) per share
Reported
$
2.35
$
1.82
$
1.89
$
6.28
$
1.55
$
1.97
$
(0.14)
$
1.35
Adjusted
1
2.45
2.19
2.20
1.97
2.02
1.72
2.05
2.04
Diluted earnings (loss) per share
Reported
2.34
1.82
1.89
6.27
1.55
1.97
(0.14)
1.35
Adjusted
1
2.44
2.18
2.20
1.97
2.02
1.72
2.05
2.04
Return on common equity – reported
13.6
10.7
%
11.3
%
39.1
%
10.1
%
13.4
%
(1.0)
%
9.5
%
Return on common equity – adjusted
1
14.2
12.8
13.2
12.3
13.2
11.7
14.1
14.5
(billions of Canadian dollars, except as noted)
Average total assets
$
2,121
$
2,102
$
2,112
$
2,156
$
2,063
$
2,035
$
1,968
$
1,938
Average interest-earning assets
6
1,882
1,863
1,855
1,894
1,883
1,835
1,778
1,754
Net interest margin – reported
1.85
1.82
%
1.82
%
1.76
%
1.66
%
1.72
%
1.70
%
1.73
%
Net interest margin – adjusted
1
1.86
1.83
1.83
1.78
1.67
1.74
1.71
1.75
1
Performed” section of this document.
2
i.
ii.
iii.
iv.
3
segment:
i.
4
i.
5
i.
ii.
6
Performed” section and the Glossary of this document for additional information about these metrics.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 22
BALANCE SHEET REVIEW
TABLE 17: SELECTED INTERIM CONSOLIDATED BALANCE SHEET ITEMS
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Assets
Cash and Interest-bearing deposits with banks
$
119,959
$
116,929
Trading loans, securities, and other
234,888
220,136
Non-trading financial assets at fair value through profit or loss
8,425
7,395
Derivatives
83,371
82,972
Financial assets designated at fair value through profit or loss
7,038
6,986
Financial assets at fair value through other comprehensive income
127,872
126,369
Debt securities at amortized cost, net of allowance for credit losses
234,270
240,439
Securities purchased under reverse repurchase agreements
222,925
247,078
Loans, net of allowance for loan losses
958,486
953,012
Other
102,072
93,242
Total assets
$
2,099,306
$
2,094,558
Liabilities
Trading deposits
$
42,328
$
37,882
Derivatives
83,495
79,356
Financial liabilities designated at fair value through profit or loss
225,237
197,635
Deposits
1,245,144
1,267,104
Obligations related to securities sold under repurchase agreements
213,782
221,150
Subordinated notes and debentures
10,642
10,733
Other
153,082
152,871
Total liabilities
1,973,710
1,966,731
Total equity
125,596
127,827
Total liabilities and equity
$
2,099,306
$
2,094,558
Total assets
appreciation in the Canadian dollar decreased total assets by $29 billion.
The increase in total assets reflects an increase in trading loans, securities, and other of $15 billion, other assets of $9 billion, loans, net of allowances for loan
losses of $5 billion, cash and interest-bearing deposits with banks of $3 billion, financial assets at fair value through other comprehensive income (FVOCI) of
$1 billion, and non-trading financial assets at fair value through profit or loss of $1 billion. The increase was partially offset by a decrease in securities purchased
under reverse repurchase agreements of $24 billion, and debt securities at amortized cost, net of allowance for credit losses of $6 billion.
Cash and interest-bearing deposits with banks
increased $3 billion primarily reflecting cash management activities.
Trading loans, securities, and other
increased $15 billion primarily in equity securities, government and government-related debt securities, and other debt
securities, partially offset by the impact of foreign exchange translation and a decrease in trading loans.
Non-trading financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive income
impact of foreign exchange translation.
Debt securities at amortized cost, net of allowance for credit losses
translation, partially offset by new investments.
Securities purchased under reverse repurchase agreements
decreased $24 billion
primarily
reflecting a decrease in volume and the impact of foreign
exchange translation.
Loans, net of allowance for loan losses
increased $5 billion primarily reflecting volume growth in consumer instalment and business and government loans,
partially offset by the impact of foreign exchange translation and a decrease in residential mortgages.
Other assets
increased $9 billion primarily reflecting an increase in amounts receivable from brokers, dealers, and clients due to higher volumes of pending
trades.
Total liabilities
appreciation in the Canadian dollar decreased total liabilities by $30 billion.
The increase in total liabilities reflects an increase in financial liabilities designated at fair value through profit or loss of $27 billion, trading deposits of $4 billion and
derivatives of $4 billion. The increase was partially offset by a decrease in deposits of $22 billion and obligations related to securities sold under repurchase
agreements of $7 billion.
Trading deposits
increased $4 billion primarily reflecting new issuances, partially offset by maturities.
Derivative
liabilities
increased $4 billion primarily reflecting an increase in mark-to-market values of commodity contracts and foreign exchange contracts, partially
offset by a decrease in interest rate contracts.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 23
Financial liabilities designated at fair value through profit or loss
impact of foreign exchange translation.
Deposits
decreased $22 billion primarily reflecting the impact of foreign exchange translation and lower volumes in personal and bank deposits.
Obligations related to securities sold under repurchase agreements
decreased $7 billion primarily reflecting the impact of foreign exchange translation and a
decrease in volume.
Equity
was $126 billion as at January 31, 2026, a decrease of $2 billion from October 31, 2025. The decrease reflects losses in accumulated other comprehensive
income, primarily driven by unrealized foreign currency translation and cash flow hedges. The retained earnings is flat as the net income for the period is offset by
the premium on the repurchase of common shares and dividend distributions.
CREDIT PORTFOLIO QUALITY
Quarterly comparison – Q1 2026 vs. Q1 2025
Gross impaired loans were $5,594 million as at January 31, 2026, an increase of $141 million, or 3%, compared with the first quarter last year. Canadian Personal
and Commercial Banking gross impaired loans decreased $5 million, relatively flat compared with the first quarter last year, reflecting lower impairments in the
commercial lending portfolio, partially offset by higher impairments in the consumer lending portfolios. U.S. Banking gross impaired loans decreased $17 million, or
1%, compared with the first quarter last year, reflecting the impact of foreign exchange, partially offset by higher impairments in the commercial and consumer
lending portfolios. Wholesale gross impaired loans increased $165 million, compared with the first quarter last year, reflecting formations outpacing resolutions.
Net impaired loans were $3,900 million as at January 31, 2026, an increase of $265 million, or 7%, compared with the first quarter last year.
The allowance for credit losses of $9,601 million as at January 31, 2026 was comprised of Stage 3 allowance for impaired loans of $1,700 million, Stage 2
allowance of $4,705 million and Stage 1 allowance of $3,192 million, and the allowance for debt securities of $4 million. The Stage 1 and 2 allowances are for
performing loans and off-balance sheet instruments.
The Stage 3 allowance for loan losses decreased $124 million, or 7%, reflecting a decrease in the Canadian commercial lending portfolio, and the impact of
foreign exchange, partially offset by an increase in the Wholesale Banking portfolio. The Stage 1 and Stage 2 allowance for loan losses increased $127 million, or
2%, largely reflecting reserve build related to elevated uncertainty associated with policy and trade, partially offset by the impact of foreign exchange. The
allowance change included a decrease of $15 million attributable to the retailer program partners’ share of the U.S. strategic cards portfolio.
Forward-looking information, including macroeconomic variables deemed to be predictive of expected credit losses (ECLs) based on the Bank’s experience, is
used to determine ECL scenarios and associated probability weights to determine the probability-weighted ECLs. Each quarter, all base forecast macroeconomic
variables are refreshed, resulting in new upside and downside macroeconomic scenarios. The probability weightings assigned to each ECL scenario are also
reviewed each quarter and updated as required, as part of the Bank’s ECL governance process. As a result of periodic reviews and quarterly updates, the
allowance for credit losses may be revised to reflect updates in loss estimates based on the Bank’s recent loss experience and its forward-looking views. The Bank
periodically reviews the methodology and has performed certain additional quantitative and qualitative portfolio and loan level assessments of significant increase
in credit risk. Refer to Note 3 and Note 6 of the Bank’s first quarter 2026 Interim Consolidated Financial Statements for further details on forward-looking
information.
The probability-weighted allowance for credit losses reflects the Bank’s forward-looking views.
To
the extent that certain anticipated effects cannot be fully
incorporated into quantitative models, management continues to exercise expert credit judgment in determining the amount of ECLs, including for risks related to
elevated uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future quarters as additional information becomes
available. Refer to Note 6 of the Bank’s first quarter 2026 Interim Consolidated Financial Statements for additional details.
The Bank calculates allowances for ECLs on debt securities measured at amortized cost and FVOCI. The Bank has $358 billion in such debt securities, all of
which are performing (Stage 1 and 2) and none are impaired (Stage 3). The allowance for credit losses was $2 million for debt securities at amortized cost (DSAC)
and $2 million for debt securities at FVOCI, for a total of $4 million, flat, compared with the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Gross impaired loans increased $174 million, or 3%, compared with the prior quarter, largely reflected in the U.S. commercial and Canadian consumer lending
portfolios, partially offset by lower impairments in Canadian commercial, and the impact of foreign exchange. Impaired loans net of allowance increased
$68 million, or 2%, compared with the prior quarter.
allowance of $4,705 million and Stage 1 allowance of $3,192 million, and the allowance for debt securities of $4 million. The Stage 1 and 2 allowances are for
performing loans and off-balance sheet instruments. The Stage 3 allowance for loan losses increased $96 million, or 6%, compared with the prior quarter,
reflecting credit migration in the Wholesale and U.S. commercial lending portfolios. The Stage 1 and Stage 2 allowance for loan losses decreased $240 million, or
3%, compared with the prior quarter, reflective of the impact of foreign exchange, migration of reserves from performing to impaired in the Wholesale and U.S.
commercial portfolios, and an improvement in the macroeconomic forecasts.
For further details on loans, impaired loans, allowance for credit losses, and on the Bank’s use of forward-looking information and macroeconomic variables in
determining its allowance for credit losses, refer to Note 6 of the Bank’s first quarter 2026 Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 24
TABLE 18: CHANGES IN GROSS IMPAIRED LOANS AND ACCEPTANCES
1
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Personal, Business, and Government Loans
Impaired loans as at beginning of period
$
5,420
$
5,334
$
4,949
Classified as impaired during the period
2,579
2,177
2,432
Transferred to performing during the period
(297)
(329)
(327)
Net repayments
(569)
(573)
(532)
Disposals of loans
(240)
–
(47)
Amounts written off
(1,210)
(1,221)
(1,144)
Exchange and other movements
(89)
32
122
Impaired loans as at end of period
$
5,594
$
5,420
$
5,453
1
TABLE 19: ALLOWANCE FOR CREDIT LOSSES
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
January 31
2026
2025
2025
Allowance for loan losses for on-balance sheet loans
Stage 1 allowance for loan losses
$
2,723
$
2,739
$
2,598
Stage 2 allowance for loan losses
4,150
4,362
4,239
Stage 3 allowance for loan losses
1,694
1,588
1,818
Total allowance for loan losses for on-balance sheet loans
1
8,567
8,689
8,655
Allowance for off-balance sheet instruments
Stage 1 allowance for loan losses
469
470
398
Stage 2 allowance for loan losses
555
566
535
Stage 3 allowance for loan losses
6
16
6
Total allowance for off-balance sheet instruments
1,030
1,052
939
Allowance for loan losses
9,597
9,741
9,594
Allowance for debt securities
4
4
4
Allowance for credit losses
$
9,601
$
9,745
$
9,598
Impaired loans, net of allowance
2
$
3,900
$
3,832
$
3,635
Net impaired loans as a percentage of net loans
2
0.41
%
0.40
%
0.38
%
Total allowance for credit losses as a percentage of gross loans and acceptances
0.99
1.01
0.99
Provision for (recovery of) credit losses as a percentage of net average loans and acceptances
0.43
0.41
0.50
1
2
Real Estate Secured Lending
Retail real estate secured lending includes mortgages and lines of credit to North American consumers to satisfy financing needs including home purchases and
refinancing. While the Bank retains first lien on the majority of properties held as security, there is a small portion of loans with second liens, but most of these are
behind a TD mortgage or home equity line of credit (HELOC) that is in first position. In Canada, credit policies are designed so that the combined exposure of all
uninsured facilities on one property does not exceed 80% of the collateral value at origination. Lending at a higher loan-to-value ratio is permitted by legislation but
requires default insurance. This insurance is contractual coverage for the life of eligible facilities and protects the Bank’s real estate secured lending portfolio
against potential losses caused by borrowers’ default. The Bank may also purchase default insurance on lower loan-to-value ratio loans. The insurance is provided
by either government-backed entities or approved private mortgage insurers. In the U.S., for residential mortgage originations, mortgage insurance is usually
obtained from either government-backed entities or approved private mortgage insurers when the loan-to-value exceeds 80% of the collateral value at origination.
The Bank regularly performs stress tests on its real estate lending portfolio as part of its overall stress testing program. This is done with a view to determine the
extent to which the portfolio would be vulnerable to a severe downturn in economic conditions. The effect of severe changes in house prices, interest rates, and
unemployment levels are among the factors considered when assessing the impact on credit losses and the Bank’s overall profitability. A variety of portfolio
segments, including dwelling type and geographical regions, are examined during the exercise to determine whether specific vulnerabilities exist.
TABLE 20: CANADIAN REAL ESTATE SECURED LENDING
1
(millions of Canadian dollars)
As at
Amortizing
Non-amortizing
Total
Residential
Home equity
Total amortizing real
Home equity
mortgages
lines of credit
estate secured lending
lines of credit
January 31, 2026
Total
$
261,940
$
118,919
$
380,859
$
37,502
$
418,361
October 31, 2025
Total
$
267,469
$
110,829
$
378,298
$
37,098
$
415,396
1
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 25
TABLE 21: REAL ESTATE SECURED LENDING
1,2
(millions of Canadian dollars, except as noted)
As at
Residential mortgages
Home equity lines of credit
Total
Insured
3
Uninsured
Insured
3
Uninsured
Insured
3
Uninsured
January 31, 2026
Canada
Atlantic provinces
$
2,330
0.9
%
$
4,989
1.9
%
$
134
0.1
%
$
3,030
1.9
%
$
2,464
0.6
%
$
8,019
1.9
%
British Columbia
4
7,708
2.9
45,972
17.6
682
0.4
30,447
19.5
8,390
2.0
76,419
18.3
Ontario
4
21,340
8.1
122,029
46.6
2,330
1.5
85,351
54.6
23,670
5.6
207,380
49.6
Prairies
4
15,978
6.1
22,431
8.6
1,277
0.8
16,809
10.7
17,255
4.1
39,240
9.4
Québec
5,739
2.2
13,424
5.1
419
0.3
15,942
10.2
6,158
1.5
29,366
7.0
Total Canada
53,095
20.2
%
208,845
79.8
%
4,842
3.1
%
151,579
96.9
%
57,937
13.8
%
360,424
86.2
%
United States
1,497
44,714
–
12,278
1,497
56,992
Total
$
54,592
$
253,559
$
4,842
$
163,857
$
59,434
$
417,416
October 31, 2025
Canada
Atlantic provinces
$
2,377
0.9
%
$
5,038
1.9
%
$
139
0.1
%
$
2,833
1.9
%
$
2,516
0.6
%
$
7,871
1.9
%
British Columbia
4
7,849
2.9
47,101
17.6
708
0.5
28,551
19.3
8,557
2.1
75,652
18.2
Ontario
4
21,505
8.1
124,702
46.6
2,412
1.6
80,826
54.7
23,917
5.7
205,528
49.5
Prairies
4
16,350
6.1
22,746
8.5
1,320
0.9
15,738
10.6
17,670
4.3
38,484
9.3
Québec
5,933
2.2
13,868
5.2
433
0.3
14,967
10.1
6,366
1.5
28,835
6.9
Total Canada
54,014
20.2
%
213,455
79.8
%
5,012
3.4
%
142,915
96.6
%
59,026
14.2
%
356,370
85.8
%
United States
1,544
46,050
–
12,481
1,544
58,531
Total
$
55,558
$
259,505
$
5,012
$
155,396
$
60,570
$
414,901
1
2
3
caused by borrower default. It is provided by either government-backed entities or other approved private mortgage insurers.
4
The following table provides a summary of the period over which the Bank’s residential mortgages would be fully repaid based on the amount of the most recent
payment received. All figures are calculated based on current customer payment amounts, including voluntary payments larger than the original contractual
amounts and/or other voluntary prepayments. The most recent customer payment amount may exceed the original contractual amount due.
Balances with a remaining amortization longer than 30 years primarily reflect Canadian variable rate mortgages where prior interest rate increases relative to
current customer payment levels have resulted in a longer current amortization period. At renewal, the amortization period for Canadian mortgages reverts to the
remaining contractual amortization, which may require increased payments.
TABLE 22: RESIDENTIAL MORTGAGES BY REMAINING AMORTIZATION
1,2
As at
<=5
>5 – 10
>10 – 15
>15 – 20
>20 – 25
>25 – 30
>30 – 35
>35
years
years
years
years
years
years
years
years
Total
January 31, 2026
Canada
0.8
%
3.0
%
8.5
%
19.9
%
31.8
%
30.4
%
1.2
%
4.4
%
100.0
%
United States
2.6
1.7
3.5
9.1
26.6
55.3
0.6
0.6
100.0
Total
1.1
%
2.8
%
7.7
%
18.3
%
31.0
%
34.2
%
1.1
%
3.8
%
100.0
%
October 31, 2025
Canada
0.8
%
2.9
%
8.3
%
20.0
%
31.9
%
30.2
%
1.2
%
4.7
%
100.0
%
United States
2.6
1.6
3.5
9.0
24.1
57.8
0.8
0.6
100.0
Total
1.1
%
2.7
%
7.5
%
18.3
%
30.8
%
34.5
%
1.1
%
4.0
%
100.0
%
1
2
TABLE 23: UNINSURED AVERAGE LOAN-TO-VALUE – Newly Originated and Newly Acquired
1,2,3
For the three months ended
Residential
Home equity
Residential
Home equity
mortgages
lines of credit
4,5
Total
mortgages
lines of credit
4,5
Total
January 31, 2026
October 31, 2025
Canada
Atlantic provinces
69
%
69
%
69
%
70
%
69
%
69
%
British Columbia
6
68
66
66
66
66
66
Ontario
6
68
68
68
68
67
67
Prairies
6
72
72
72
72
72
72
Québec
68
71
70
69
71
71
Total Canada
68
68
68
68
68
68
United States
69
57
64
68
58
64
Total
69
%
68
%
68
%
68
%
68
%
68
%
1
2
3
4
5
6
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 26
Sovereign Risk
The table below provides a summary of the Bank’s direct credit exposures outside of Canada and the U.S. (Europe excludes United Kingdom).
TABLE 24: Total Net Exposure by Region and Counterparty
(millions of Canadian dollars)
As at
Loans and commitments
1
Derivatives, repos, and securities lending
2
Trading and investment portfolio
3
Total
Corporate
Sovereign
Financial
Total
Corporate
Sovereign
Financial
Total
Corporate
Sovereign
Financial
Total
Exposure
4
January 31, 2026
Region
Europe
$
8,951
$
8
$
5,082
$
14,041
$
6,438
$
1,434
$
9,210
$
17,082
$
1,132
$
26,083
$
2,182
$
29,397
$
60,520
United Kingdom
7,031
2,688
2,396
12,115
2,748
1,504
10,925
15,177
263
1,105
448
1,816
29,108
Asia
140
21
2,566
2,727
517
956
3,909
5,382
120
8,397
1,988
10,505
18,614
Other
5
343
129
686
1,158
909
569
2,298
3,776
110
392
1,952
2,454
7,388
Total
$
16,465
$
2,846
$
10,730
$
30,041
$
10,612
$
4,463
$
26,342
$
41,417
$
1,625
$
35,977
$
6,570
$
44,172
$
115,630
October 31, 2025
Region
Europe
$
8,895
$
8
$
5,019
$
13,922
$
5,331
$
1,359
$
9,647
$
16,337
$
1,116
$
25,876
$
1,982
$
28,974
$
59,233
United Kingdom
6,731
2,577
2,483
11,791
3,199
1,537
12,237
16,973
270
176
661
1,107
29,871
Asia
182
23
2,527
2,732
241
538
3,795
4,574
138
8,346
1,829
10,313
17,619
Other
5
227
–
690
917
705
410
2,353
3,468
110
216
1,967
2,293
6,678
Total
$
16,035
$
2,608
$
10,719
$
29,362
$
9,476
$
3,844
$
28,032
$
41,352
$
1,634
$
34,614
$
6,439
$
42,687
$
113,401
1
2
Association master netting agreement.
3
4
5
CAPITAL POSITION
REGULATORY CAPITAL
Capital requirements established by the Basel Committee on Banking Supervision (BCBS) are commonly referred to as Basel III. Under Basel III,
Total Capital consists of three components, namely CET1, Additional Tier 1, and Tier 2 Capital. Risk sensitive regulatory capital ratios are calculated by dividing
CET1, Tier 1, and Total Capital by risk-weighted assets (RWA), inclusive of any minimum requirements outlined under the regulatory floor. Basel III also
introduced a non-risk sensitive leverage ratio to act as a supplementary measure to the risk-sensitive capital requirements. The leverage ratio is calculated by
dividing Tier 1 Capital by leverage exposure which is primarily comprised of on-balance sheet assets with adjustments made to derivative and securities financing
transaction exposures, and credit equivalent amounts of off-balance sheet exposures. TD manages its regulatory capital in accordance with OSFI’s
implementation of the Basel III Capital Framework.
OSFI’s Capital Requirements under Basel III
OSFI’s CAR and LR guidelines detail how the Basel III capital rules apply to Canadian banks.
The Domestic Stability Buffer (DSB) level increased from 3% to 3.5% as of November 1, 2023, and has remained stable since. Currently, the DSB can range from
0 to 4%, with the effective level adjusted by OSFI in response to developments in Canada’s financial system and the broader economy.
OSFI has implemented the Basel III reforms with adjustments to make them suitable for domestic implementation. The Basel III reforms impact the calculation of
credit risk, market risk and operational risk for Canadian banks, as well as amend the LR Guideline to include a requirement for domestic systemically important
banks (D-SIBs) to hold a leverage ratio buffer of 0.50% in addition to the regulatory minimum requirement of 3.0%. The LR buffer requirement also applies to the
TLAC leverage ratio.
On November 1, 2023, the standardized capital floor transitioned to 67.5% of RWA from the previous 65% of RWA. OSFI has stated that the floor will remain at
67.5% until further notice.
The Bank has implemented OSFI’s Parental Stand-Alone (Solo) Total Loss Absorbing Capacity (TLAC) Framework for D-SIBs, which establishes a risk-based
measure intended to ensure that a non-viable D-SIB has sufficient loss absorbing capacity on a stand-alone, legal entity basis to support its resolution. The Bank is
compliant with the requirements set out in this framework.
The table below summarizes OSFI’s published regulatory minimum capital targets as at January 31, 2026.
REGULATORY CAPITAL AND TLAC TARGET RATIOS
Capital
Pillar 1
Pillar 1 & 2
Conservation
D-SIB / G-SIB
Regulatory
Regulatory
Minimum
Buffer
Surcharge
1
Target
2
DSB
Target
CET1
4.5
%
2.5
%
1.0
%
8.0
%
3.5
%
11.5
%
Tier 1
6.0
2.5
1.0
9.5
3.5
13.0
Total Capital
8.0
2.5
1.0
11.5
3.5
15.0
Leverage
3.0
n/a
3
0.5
3.5
n/a
3.5
TLAC
18.0
2.5
1.0
21.5
3.5
25.0
TLAC Leverage
6.75
n/a
0.50
7.25
n/a
7.25
1
for risk weighted capital. The G-SIB surcharge may increase above 1%, to a maximum of 4%, if the Bank’s G-SIB score increases above certain thresholds. OSFI’s LR Guideline includes
a requirement for D-SIBs to hold a leverage ratio buffer set at 50% of a D-SIB’s higher loss absorbency risk-weighted requirements, effectively 0.50%. This buffer also applies to the TLAC
Leverage ratio.
2
3
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 27
Global Systemically Important Banks Disclosures
The Financial Stability Board (FSB), in consultation with the BCBS and national authorities, identifies G-SIBs. The G-SIB assessment methodology is based on the
submissions of the largest global banks. Thirteen indicators are used in the G-SIB assessment methodology to determine systemic importance. The score for a
particular indicator is calculated by dividing the individual bank value by the aggregate amount for the indicator summed across all banks included in the
assessment. Accordingly, an individual bank’s ranking is reliant on the results and submissions of other global banks.
required annually, no later than the date of a bank’s first quarter public disclosure of shareholder financial data in the following year.
Public communications on G-SIB status are issued annually each November. On November 22, 2019, the Bank was designated as a G-SIB by the FSB. The Bank
continued to maintain its G-SIB status when the FSB published the 2025 list of G-SIBs on November 27, 2025. As a result of this designation, the Bank is subject
to an additional loss absorbency requirement (CET1 as a percentage of RWA) of 1% under applicable FSB member authority requirements. The Bank’s G-SIB
designation has no additional impact on the Bank’s minimum CET1 regulatory requirements, as the G-SIB surcharge is consistent with the D-SIB requirement set
out by OSFI. The G-SIB surcharge may increase above 1% if the Bank’s G-SIB score increases above certain thresholds to a maximum of 4.5%.
Company (IHC), to maintain a minimum amount of TLAC and long-term debt.
bank’s total score on the G-SIB scale.
higher interest rate swap activity. The increase in trading and available-for-sale (AFS) securities reflects higher fixed income and equity exposures. All other
changes in the indicators from the prior year primarily reflect normal business activities of the Bank.
TABLE 25: G-SIB INDICATORS
1
(millions of Canadian dollars)
As at
October 31, 2025
October 31, 2024
Category (and weighting)
Individual Indicator
Cross-jurisdictional activity (20%)
Cross-jurisdictional claims
$
1,059,153
$
1,100,768
Cross-jurisdictional liabilities
1,032,848
1,042,951
Size (20%)
Total exposures as defined for use in the Basel III leverage ratio
2,285,174
2,228,986
Interconnectedness (20%)
Intra-financial system assets
136,828
107,793
Intra-financial system liabilities
49,036
36,477
Securities outstanding
533,883
487,199
Substitutability/financial institution
Assets under custody
824,907
689,698
infrastructure (20%)
Payments activity
65,326,873
61,946,928
Underwritten transactions in debt and equity markets
216,358
211,859
Trading Volume (includes the two sub indicators)
– Trading volume fixed income sub indicator
6,824,850
12,900,561
– Trading volume equities and other securities sub indicator
5,068,353
2,855,130
Complexity (20%)
Notional amount of OTC derivatives
28,138,484
23,945,530
Trading and other securities
2
111,132
72,514
Level 3 assets
3,581
4,663
1
Requirements. Given the Bank was designated as a G-SIB by the FSB on November 22, 2019, additional public disclosures on these indicators are required. Refer to the Bank’s
Regulatory Capital Disclosures at www.td.com/investor-relations/ir-homepage/regulatory-disclosures/g-sib/disclosures.jsp for these additional disclosures on the 2025 G-SIB indicators.
The Bank is required to submit its G-SIB indicators to OSFI and BCBS for review following the date of this report. In the event that one or both regulators provide comments to the Bank
regarding its submission that would result in changes to the G-SIB indicators listed in the table above, the Bank will publish such revised G-SIB indicators on its website.
2
Includes trading securities, securities designated at FVTPL, and securities at FVOCI.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 28
The following table provides details of the Bank’s regulatory capital position.
TABLE 26: CAPITAL STRUCTURE AND RATIOS – Basel III
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
January 31
2026
2025
2025
Common Equity Tier 1 Capital
Common shares plus related contributed surplus
$
24,855
$
25,010
$
25,679
Retained earnings
78,253
78,320
71,718
Accumulated other comprehensive income
10,868
12,874
10,520
Common Equity Tier 1 Capital before regulatory adjustments
113,976
116,204
107,917
Common Equity Tier 1 Capital regulatory adjustments
Prudential valuation adjustments
(175)
(165)
–
Goodwill (net of related tax liability)
(18,248)
(18,753)
(19,359)
Intangibles (net of related tax liability)
(3,351)
(3,316)
(3,041)
Deferred tax assets excluding those arising from temporary differences
(156)
(202)
(284)
Cash flow hedge reserve
1,304
867
2,859
Shortfall of provisions to expected losses
–
–
–
Gains and losses due to changes in own credit risk on fair valued liabilities
(127)
(166)
(191)
Defined benefit pension fund net assets (net of related tax liability)
(760)
(811)
(733)
Investment in own shares
(24)
(9)
(57)
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
–
–
(1,890)
Significant investments in the common stock of banking, financial, and insurance entities
that are outside the scope of regulatory consolidation, net of eligible short positions
(amount above 10% threshold)
–
–
–
Equity investments in funds subject to the fall-back approach
(52)
(90)
(35)
Crypto-asset deduction
(17)
–
–
Other deductions or regulatory adjustments to CET1 as determined by OSFI
22
20
18
Total regulatory adjustments to Common Equity Tier 1 Capital
(21,584)
(22,625)
(22,713)
Common Equity Tier 1 Capital
92,392
93,579
85,204
Additional Tier 1 Capital instruments
Directly issued qualifying Additional Tier 1 instruments plus stock surplus
11,620
11,623
11,087
Additional Tier 1 Capital instruments before regulatory adjustments
11,620
11,623
11,087
Additional Tier 1 Capital instruments regulatory adjustments
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
–
–
(2)
Significant investments in the capital of banking, financial, and insurance entities that are outside
the scope of regulatory consolidation, net of eligible short positions
(700)
(700)
(700)
Total regulatory adjustments to Additional Tier 1 Capital
(700)
(700)
(702)
Additional Tier 1 Capital
10,920
10,923
10,385
Tier 1 Capital
103,312
104,502
95,589
Tier 2 Capital instruments and provisions
Directly issued qualifying Tier 2 instruments plus related stock surplus
10,642
10,733
13,471
Collective allowances
1,141
1,661
1,424
Tier 2 Capital before regulatory adjustments
11,783
12,394
14,895
Tier 2 regulatory adjustments
Investments in own Tier 2 instruments
–
–
–
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible
short positions (amount above 10% threshold)
1
–
–
(226)
Non-significant investments in the other TLAC-eligible instruments issued by G-SIBs and Canadian
D-SIBs, where the institution does not own more than 10% of the issued common share capital
of the entity: amount previously designated for the 5% threshold but that no longer meets the
conditions
(30)
(30)
(20)
Significant investments in the capital of banking, financial, and insurance entities that are outside
the scope of regulatory consolidation, net of eligible short positions
–
–
–
Total regulatory adjustments to Tier 2 Capital
(30)
(30)
(246)
Tier 2 Capital
11,753
12,364
14,649
Total Capital
$
115,065
$
116,866
$
110,238
Risk-weighted assets
$
635,191
$
636,424
$
649,043
Capital Ratios and Multiples
Common Equity Tier 1 Capital (as percentage of risk-weighted assets)
14.5
%
14.7
%
13.1
%
Tier 1 Capital (as percentage of risk-weighted assets)
16.3
16.4
14.7
Total Capital (as percentage of risk-weighted assets)
18.1
18.4
17.0
Leverage ratio
2
4.5
4.6
4.2
1
10% of the issued common share capital of the entity.
2
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 29
16
17
As at January 31, 2026, the Bank’s CET1, Tier 1, and Total Capital ratios were 14.5%, 16.3%, and 18.1%, respectively. The decrease in the Bank’s CET1 Capital
ratio from 14.7% as at October 31, 2025 was primarily driven by common shares repurchased for cancellation and growth in RWA, partially offset by earnings net
of dividends, credit risk model updates, and unrealized gains on FVOCI securities. The Bank expects to reach a CET1 ratio of approximately 13% by
October 31, 2027
,
.
As at January 31, 2026, the Bank’s leverage ratio was 4.5%. Compared with the Bank’s leverage ratio of 4.6% at October 31, 2025, the decrease was primarily
attributable to common shares repurchased for cancellation, partially offset by earnings net of dividends and leverage exposure growth across various segments.
Future Regulatory Capital Developments
Future regulatory capital developments were described in the “Future Regulatory Capital Developments” section of the Bank’s 2025 MD&A.
TABLE 27: EQUITY AND OTHER SECURITIES
1
(thousands of shares/units and millions of Canadian dollars, except as noted)
As at
January 31, 2026
October 31, 2025
Number of
Number of
shares/units
Amount
shares/units
Amount
Common shares
Common shares outstanding
1,671,278
$
24,551
1,689,496
$
24,727
Treasury – common shares
(41)
(5)
–
–
Total common shares
1,671,237
$
24,546
1,689,496
$
24,727
Stock options
Vested
6,248
5,160
Non-vested
8,355
9,027
Preferred shares – Class A
Series 1
20,000
$
500
20,000
$
500
Series 16
14,000
350
14,000
350
Series 18
14,000
350
14,000
350
Series 27
850
850
850
850
Series 28
800
800
800
800
49,650
$
2,850
49,650
$
2,850
Other equity instruments
2,3
Limited Recourse Capital Notes – Series 1
1,750
1,750
1,750
1,750
Limited Recourse Capital Notes – Series 2
1,500
1,500
1,500
1,500
Limited Recourse Capital Notes – Series 3
4
1,750
2,403
1,750
2,403
Limited Recourse Capital Notes – Series 4
4
750
1,023
750
1,023
Limited Recourse Capital Notes – Series 5
750
750
750
750
Limited Recourse Capital Notes – Series 6
4
750
1,037
750
1,037
Perpetual Subordinated Capital Notes – Series 2023-9
5
1
312
1
312
56,901
$
11,625
56,901
$
11,625
Treasury – preferred shares and other equity instruments
(11)
(11)
(29)
(4)
Total preferred shares and other equity instruments
56,890
$
11,614
56,872
$
11,621
1
Statements.
2
3
details.
4
5
DIVIDENDS
On February 25, 2026, the Board approved a dividend in an amount of one dollar and eight cents ($1.08) per fully paid common share in the capital stock of the
Bank for the quarter ending April 30, 2026, payable on and after April 30, 2026, to shareholders of record at the close of business on April 9, 2026. The Bank has a
semi-annual dividend review cycle to support the alignment of shareholder return with earnings growth.
DIVIDEND REINVESTMENT PLAN
The Bank offers a Dividend Reinvestment Plan (DRIP) for its common shareholders. Participation in the plan is optional and under the terms of the plan, cash
dividends on common shares are used to purchase additional common shares. At the option of the Bank, the common shares may be issued from treasury at an
average market price based on the last five trading days before the date of the dividend payment, with a discount of between 0% to 5% at the Bank’s discretion or
purchased from the open market at market prices.
During the three months ended January 31, 2026, the Bank satisfied the DRIP requirements through open market common share purchases (three months
ended January 31, 2025 – the Bank satisfied the DRIP requirements through common shares issued from treasury with no discount).
NORMAL COURSE ISSUER BID
On February 24, 2025, the Bank announced that the Toronto Stock Exchange (TSX) and OSFI had approved the Bank’s normal course issuer bid (2025 NCIB) to
repurchase for cancellation up to $8 billion of its common shares, not to exceed 100 million common shares. The Bank completed $8 billion in repurchases and
terminated the 2025 NCIB in January 2026. From the commencement of the 2025 NCIB on March 3, 2025, to its completion and termination on January 15, 2026,
the Bank repurchased 80.2 million shares under the program, at an average price of $99.74 per share for a total amount of $8.0 billion.
On January 16, 2026, the Bank announced that the TSX and OSFI have approved the Bank’s new normal course issuer bid (2026 NCIB) to repurchase for
cancellation up to $7 billion of its common shares, not to exceed 61 million common shares. The 2026 NCIB commenced on January 20, 2026, and will terminate
on (A) the earliest to occur of: (i) January 15, 2027; (ii) the date on which the aggregate purchase cost of common shares purchased equals $7 billion; and (iii) the
16
The Bank’s expectations for financial targets are based on forward-looking assumptions that have inherent risk and uncertainties. Results may vary depending on actual economic
conditions, including the level of unemployment, interest rates, and economic growth or contraction, the operating environment, including regulatory requirements, political environment,
and competitive landscape, and the Bank’s assumptions on future business performance, including credit conditions and performance, inclusive of policy and trade uncertainty and
borrower or industry specific credit factors and conditions, and foreign exchange impact. These assumptions are subject to inherent uncertainties and may vary based on factors outside
the Bank’s control, including those set out at the beginning of this document in the “Caution Regarding Forward-Looking Statements” section. Refer to the “Risk Factors That May Affect
Future Results” section of the Bank’s 2025 MD&A for additional information about risks and uncertainties that may impact the Bank’s estimates.
17
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 30
date on which the maximum number of common shares purchasable is reached; or (B) such earlier date as the Bank may determine. From the commencement of
the 2026 NCIB on January 20, 2026, to January 31, 2026, the Bank repurchased 3.8 million shares under the program, at an average price of $129.06 per share
for a total amount of $0.5 billion.
NON-VIABILITY CONTINGENT CAPITAL PROVISION
If an NVCC trigger event were to occur, for all series of Class A First Preferred Shares excluding the preferred shares issued with respect to LRCNs, the maximum
number of common shares that could be issued, assuming there are no declared and unpaid dividends on the respective series of preferred shares at the time of
conversion, would be 0.6 billion in aggregate.
The LRCNs, by virtue of the recourse to the preferred shares held in the Limited Recourse Trust, include NVCC provisions. For LRCNs, if an NVCC trigger were
to occur, the maximum number of common shares that could be issued, assuming there are no declared and unpaid dividends on the preferred shares series
issued in connection with such LRCNs, would be 1.7 billion in aggregate.
For NVCC subordinated notes and debentures (including Additional Tier 1 Perpetual Notes), if an NVCC trigger event were to occur, the maximum number of
common shares that could be issued, assuming there is no accrued and unpaid interest on the respective subordinated notes and debentures, would be 3.3 billion
in aggregate.
RISK FACTORS AND MANAGEMENT
Risk Factors That May Affect Future Results
In addition to the risks described in the “Managing Risk” section of the Bank’s 2025 MD&A and this Report, there are numerous other risk factors, many of which
are beyond the Bank’s control and the effects of which can be difficult to predict, that could cause the Bank’s results to differ significantly from the Bank’s plans,
objectives, and estimates or could impact the Bank’s reputation or the sustainability of its business model. All forward-looking statements, including those in this
MD&A, are, by their very nature, subject to inherent risks and uncertainties, general and specific, which may cause the Bank’s actual results to differ materially
from the plan, objectives, estimates or expectations expressed in the forward-looking statements. Some of these factors are discussed in the “Risk Factors and
Management” section of the 2025 MD&A and in the “Managing Risk” section of this document, and others are noted in the “Caution Regarding Forward-Looking
Statements” section of this document. The Bank has supplemented the following Risk Factors to reflect developments in the external environment.
Introduction of New and Changes to Current Laws, Rules and Regulations
Further to the risks outlined in the Introduction of New and Changes to Current Laws, Rules and Regulations section of the Bank’s 2025 MD&A, the federal
government is implementing AML related requirements as part of its mandated five-year review of Canada’s AML regime. In addition, further changes are
proposed under Bill C-2, the Strong Borders Act. Those portions that provide FINTRAC with enhanced supervisory and enforcement tools and powers, including
the ability to impose larger financial penalties, have been included in Bill C-12, Strengthening Canada’s Immigration System and Borders Act, which is currently
before the Canadian Senate. Many of the provisions are anticipated to have or will have short coming into force dates once finalized. Further changes may be
required following the completion of the mutual evaluation of Canada’s AML regime by the Financial Action Task Force (FATF), which is currently underway and
anticipated to be completed in mid-2026. The pace of these changes, the potentially short timelines to implement and the evolving risks could result in increased
costs and risks that may negatively impact the Bank’s businesses, operations, and results.
Model Risk
Further to the model risks outlined in the Bank’s 2025 MD&A, OSFI released its final Guideline E-23 – Model Risk Management on September 11, 2025, which
becomes effective on May 1, 2027. This guideline sets out OSFI’s expectations for effectively managing risks associated with the use of traditional models as well
as emerging technologies such as artificial intelligence and machine learning. TD has completed its assessment of the requirements of the guideline and does not
anticipate any issues in complying with the requirements by the effective date.
MANAGING RISK
EXECUTIVE SUMMARY
Growing profitability in financial results based on balanced revenue, expense and capital growth services involves selectively taking and managing risks within the
Bank’s risk appetite. The Bank’s goal is to earn a stable and sustainable rate of return for every dollar of risk it takes, while putting significant emphasis on
investing in its businesses to meet its future strategic objectives.
The Bank’s businesses and operations are exposed to a broad number of risks that have been identified and defined in the Enterprise Risk Framework. The
Bank’s tolerance to those risks is defined in the Enterprise Risk Appetite which has been developed within a comprehensive framework that takes into
consideration current conditions in which the Bank operates and the impact that emerging risks will have on TD’s strategy and risk profile. The Bank’s risk appetite
states that it takes risks required to build its business, but only if those risks: (1) fit the business strategy and can be understood and managed; (2) do not expose
the enterprise to any significant single loss events; TD does not ‘bet the bank’ on any single acquisition, business, product or decision; and (3) do not risk harming
the TD brand. Each business is responsible for setting and aligning its individual risk appetites with that of the enterprise based on a thorough examination of the
specific risks to which it is exposed.
The Bank considers it critical to regularly assess its operating environment and highlight top and emerging risks. These are risks with a potential to have a
material effect on the Bank and where the attention of senior leaders is focused due to the potential magnitude or immediacy of their impact.
Risks are identified, discussed, and actioned by senior leaders and reported quarterly to the Risk Committee. Specific plans to mitigate top and emerging risks
are prepared, monitored, and adjusted as required.
The Bank’s risk governance structure and risk management approach have not substantially changed from that described in the Bank’s 2025 MD&A. Additional
information on risk factors can be found in this document and the 2025 MD&A under the heading “Risk Factors and Management”. For a complete discussion of
the risk governance structure and the risk management approach, refer to the “Managing Risk” section in the Bank’s 2025 MD&A.
The shaded sections of this MD&A represent a discussion relating to market and liquidity risks and form an integral part of the Interim Consolidated Financial
Statements for the period ended January 31, 2026.
CREDIT RISK
Gross credit risk exposure, also referred to as exposure at default (EAD), is the total amount the Bank is exposed to at the time of default of a loan and is
measured before counterparty-specific provisions or write-offs. Gross credit risk exposure does not reflect the effects of credit risk mitigation (CRM) and includes
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 31
both on-balance sheet and off-balance sheet exposures. On-balance sheet exposures consist primarily of outstanding loans, non-trading securities, derivatives,
and certain other repo-style transactions. Off-balance sheet exposures consist primarily of undrawn commitments, guarantees, and certain other repo-style
transactions.
Gross credit risk exposures for the two approaches the Bank uses to measure credit risk are included in the following table.
TABLE 28: GROSS CREDIT RISK EXPOSURE – Standardized and Internal Ratings-Based (IRB) Approaches
1
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Standardized
IRB
Total
Standardized
IRB
Total
Retail
Residential secured
$
5,143
$
555,026
$
560,169
$
5,141
$
552,249
$
557,390
Qualifying revolving retail
854
178,004
178,858
871
177,970
178,841
Other retail
3,957
109,362
113,319
3,660
110,316
113,976
Total retail
9,954
842,392
852,346
9,672
840,535
850,207
Non-retail
Corporate
1,953
818,593
820,546
2,402
758,573
760,975
Sovereign
153
461,017
461,170
175
552,954
553,129
Bank
3,077
204,472
207,549
7,121
180,614
187,735
Total non-retail
5,183
1,484,082
1,489,265
9,698
1,492,141
1,501,839
Gross credit risk exposures
$
15,137
$
2,326,474
$
2,341,611
$
19,370
$
2,332,676
$
2,352,046
1
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 32
MARKET RISK
Market risk capital is calculated using the Standardized Approach under Basel III. The Bank continues to use Value-at-Risk (VaR) as an internal management
metric to monitor and control market risk.
Market Risk Linkage to the Balance Sheet
The following table provides a breakdown of the Bank’s balance sheet assets and liabilities exposed to trading and non-trading market risks. Market risk of assets
and liabilities included in the calculation of VaR and metrics used for regulatory market risk capital purposes is classified as trading market risk.
TABLE 29: MARKET RISK LINKAGE TO THE BALANCE SHEET
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Non-trading market
Balance
Trading
Non-trading
Balance
Trading
Non-trading
risk – primary risk
sheet
market risk
market risk
Other
sheet
market risk
market risk
Other
sensitivity
Assets subject to market risk
Interest-bearing deposits with banks
$
113,672
$
8,060
$
105,612
$
–
$
109,417
$
940
$
108,477
$
–
Interest rate
Trading loans, securities, and other
234,888
230,712
4,176
–
220,136
213,151
6,985
–
Interest rate
Non-trading financial assets at
fair value through profit or loss
8,425
–
8,425
–
7,395
–
7,395
–
Equity,
foreign exchange,
interest rate
Derivatives
83,371
76,501
6,870
–
82,972
72,906
10,066
–
Equity,
foreign exchange,
interest rate
Financial assets designated at
fair value through profit or loss
7,038
–
7,038
–
6,986
–
6,986
–
Interest rate
Financial assets at fair value through
other comprehensive income
127,872
–
127,872
–
126,369
–
126,369
–
Equity,
foreign exchange,
interest rate
Debt securities at amortized cost,
net of allowance for credit losses
234,270
–
234,270
–
240,439
–
240,439
–
Foreign exchange,
interest rate
Securities purchased under
reverse repurchase agreements
222,925
7,406
215,519
–
247,078
7,574
239,504
–
Interest rate
Loans, net of allowance for
loan losses
958,486
–
958,486
–
953,012
–
953,012
–
Interest rate
Other assets
1
1,933
–
1,933
–
2,047
–
2,047
–
Interest rate
Assets not exposed to
106,426
–
–
106,426
98,707
–
–
98,707
Total Assets
$
2,099,306
$
322,679
$
1,670,201
$
106,426
$
2,094,558
$
294,571
$
1,701,280
$
98,707
Liabilities subject to market risk
Trading deposits
$
42,328
$
30,298
$
12,030
$
–
$
37,882
$
28,955
$
8,927
$
–
Equity, interest rate
Derivatives
83,495
80,573
2,922
–
79,356
74,790
4,566
–
Equity,
foreign exchange,
interest rate
Securitization liabilities at fair value
25,399
25,399
–
–
25,283
25,283
–
–
Interest rate
Financial liabilities designated at
fair value through profit or loss
225,237
3
225,234
–
197,635
3
197,632
–
Interest rate
Deposits
1,245,144
–
1,245,144
–
1,267,104
–
1,267,104
–
Interest rate,
foreign exchange
Obligations related to securities
sold short
41,455
40,223
1,232
–
43,795
42,475
1,320
–
Interest rate
Obligations related to securities sold
under repurchase agreements
213,782
19,785
193,997
–
221,150
13,922
207,228
–
Interest rate
Securitization liabilities at amortized
cost
15,021
–
15,021
–
14,841
–
14,841
–
Interest rate
Subordinated notes and debentures
10,642
–
10,642
–
10,733
–
10,733
–
Interest rate
Other liabilities
1
16,446
–
16,446
–
16,934
–
16,934
–
Equity, interest rate
Liabilities and Equity not
exposed to market risk
180,357
–
–
180,357
179,845
–
–
179,845
Total Liabilities and Equity
$
2,099,306
$
196,281
$
1,722,668
$
180,357
$
2,094,558
$
185,428
$
1,729,285
$
179,845
1
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 33
-75
-65
-55
-45
-35
-25
-15
-5
5
15
25
35
45
55
65
75
11/3/2025
11/10/2025
11/17/2025
11/24/2025
12/1/2025
12/8/2025
12/15/2025
12/22/2025
12/30/2025
1/7/2026
1/14/2026
1/21/2026
1/28/2026
TOTAL VALUE-AT-RISK AND TRADING NET REVENUE
(millions of Canadian dollars)
Calculating VaR
The Bank computes total VaR on a daily basis by combining the General Market Risk (GMR) and Idiosyncratic Debt Specific Risk (IDSR) associated with the
Bank’s trading positions.
GMR is determined by creating a distribution of potential changes in the market value of the current portfolio using historical simulation. The Bank values the
current portfolio using the market price and rate changes of the most recent
products. GMR is computed as the threshold level that portfolio losses are not expected to exceed more than
one
one-day
period is used for GMR calculation.
IDSR measures idiosyncratic (single-name) credit spread risk for credit exposures in the trading portfolio using Monte Carlo simulation. The IDSR model is
based on the historical behaviour of five-year idiosyncratic credit spreads. Similar to GMR, IDSR is computed as the threshold level that portfolio losses are not
expected to exceed more than
one
ten-day
The following graph discloses daily
one-day
trading income and net interest income related to positions within the Bank’s market risk capital trading books. For the first quarter ending January 31, 2026,
there were
% of the trading days, reflecting normal trading activity. Losses in the quarter did
not exceed VaR on any trading day.
VaR is a valuable risk measure but it should be used in the context of its limitations, for example:
●
●
●
The Bank continuously improves its VaR methodologies and incorporates new risk measures in line with market conventions, industry best practices, and
regulatory requirements. The change in VaR on December 1, 2025 reflects an improvement in methodology and not a change in risk-taking.
To mitigate some of the shortcomings of VaR, the Bank uses additional metrics designed for risk management purposes. This includes Stress Testing as well
as sensitivities to various market risk factors.
The following table presents the end of quarter, average, high, and low usage of TD’s VaR metric.
TABLE 30: PORTFOLIO MARKET RISK MEASURES
(millions of Canadian dollars)
For the three months ended
January 31
October
31
January
31
2026
2025
2025
As at
Average
High
Low
Average
Average
Interest rate risk
$
$
$
$
$
$
Credit spread risk
Equity risk
Foreign exchange risk
Commodity risk
Idiosyncratic debt specific risk
Diversification effect
1
(61.1 )
(58.8 )
n/m
2
n/m
(54.6 )
(41.8 )
Total Value -at-Risk (one-day)
$
$
$
$
$
$
1
The aggregate VaR is less than the sum of the VaR of the different risk types due to risk offsets resulting from portfolio diversification.
2
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 34
Average VaR decreased quarter-over-quarter due to changes in fixed income positions along with the narrower credit spreads, partially offset by interest rate
positions.
Validation of VaR Model
The Bank uses a back-testing process to compare actual profits and losses to VaR to review their consistency with the statistical results of the VaR model.
Structural (Non-Trading) Interest Rate Risk
The Bank’s structural interest rate risk arises from traditional personal and commercial banking activity and is generally the result of mismatches between the
maturities and repricing dates of the Bank’s assets and liabilities.
The primary measures for managing and controlling this risk are Economic Value of Shareholders’ Equity (EVE) Sensitivity and Net Interest Income Sensitivity
(NIIS).
The EVE Sensitivity measures the change in the net present value of the Bank’s banking book assets, liabilities, and certain off-balance sheet items given a
specific interest rate shock. It reflects a measurement of the potential present value impact on shareholders’ equity without an assumed term profile for the
management of the Bank’s own equity and excludes product margins.
The NIIS measures the NII change over a twelve-month horizon for a specified change in interest rates for banking book assets, liabilities, and certain off-
balance sheet items assuming a constant balance sheet over the period.
The Bank’s Market Risk policy sets overall limits on the structural interest rate risk measures. These limits are periodically reviewed and approved by the Risk
Committee. In addition to the Board policy limits, book-level risk limits are set for the Bank’s management of non-trading interest rate risk by Risk Management.
Exposures against these limits are routinely monitored and reported, and breaches of the Board limits, if any, are escalated to both the Asset Liability and Capital
Committee (ALCO) and the Risk Committee.
The following table shows the potential before-tax impact of an immediate and sustained 100 bps increase or decrease in interest rates on the EVE and NIIS
measures.
TABLE 31: STRUCTURAL INTEREST RATE SENSITIVITY MEASURES
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
January 31, 2025
EVE
NII
EVE
NII
EVE
NII
Sensitivity
1
Sensitivity
1,2
Sensitivity
1
Sensitivity
2
Sensitivity
1
Sensitivity
1,2
Canadian
U.S.
Total
Canadian
U.S.
Total
Total
Total
Total
Total
dollar
3
dollar
dollar
3
dollar
Before-tax impact of
$
(1,021 )
$
(1,500 )
$
(2,521 )
$
$
$
$
(2,515 )
$
$
(2,573 )
$
(417 )
(398 )
(815 )
(860 )
(789 )
1
Does not include exposures from Wholesale Banking.
2
3
As at January 31, 2026, an immediate and sustained 100 bps increase in interest rates would have had a negative impact to the Bank’s EVE of $
increase of $
sustained 100 bps decrease in interest rates would have had a positive impact to the Bank’s EVE of $
and a negative impact to the Bank’s NII of $
quarter over quarter decrease in NII Sensitivity is largely attributed to Treasury hedging activity.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 35
Liquidity Risk
The risk of having insufficient cash or collateral to meet financial obligations and an inability to, in a timely manner, raise funding or monetize assets at a non-
distressed price. Financial obligations can arise from deposit withdrawals, debt maturities, commitments to provide credit or liquidity support or the need to pledge
additional collateral.
TD’S LIQUIDITY RISK APPETITE
TD follows a disciplined liquidity management program, which is subject to risk governance and oversight, and is designed to maintain sufficient liquidity to permit
the Bank to operate through a significant liquidity event without relying on extraordinary central bank assistance. The Bank maintains access to a stable and
diversified funding base and aligns its funding profile with that of the assets and contingent obligations it supports.
WHO MANAGES LIQUIDITY RISK
The Risk Committee, the ALCO and the Treasurer are accountable for the identification, assessment, control, monitoring and oversight of liquidity risk.
●
policies annually.
●
governance of liquidity risk.
●
Management, identifies and monitors the Bank’s liquidity risks.
In addition to our committee oversight framework, liquidity risk management activities are subject to the three lines of defence governance model. Treasury, the
first line of defence for the management of liquidity risk, is subject to independent second line challenge and oversight by Risk Management. TD’s Internal Audit is
the third line of defence. The three lines of defence are independent of the business whose activities generate liquidity risks.
The Bank’s liquidity risk appetite and liquidity risk management approach have not changed substantially from that described in the Bank’s 2025 MD&A. For a
complete discussion of liquidity risk, refer to the “Liquidity Risk” section in the Bank’s 2025 MD&A.
Liquid assets
The Bank’s unencumbered liquid assets could be used to help address potential funding needs arising from stress events. Liquid asset eligibility considers
estimated stressed market values and trading market depth, as well as operational, legal, or other impediments to sale, rehypothecation or pledging.
Assets held by the Bank to meet liquidity requirements are summarized in the following tables. The tables do not include assets held within the Bank’s insurance
businesses as these are used to support insurance-specific liabilities and capital requirements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 36
TABLE 32: SUMMARY OF LIQUID ASSETS BY TYPE AND CURRENCY
(millions of Canadian dollars, except as noted)
As at
Securities
received as
collateral from
securities
financing and
Bank-owned
derivative
Total
Encumbered
Unencumbered
liquid assets
transactions
liquid assets
liquid assets
liquid assets
1
January 31, 2026
Cash and central bank reserves
$
$
$
$
$
Obligations of government, federal agencies, public sector entities,
and multilateral development banks
2
Equities
Other debt securities
Other securities
Total Canadian dollar-denominated
Cash and central bank reserves
Obligations of government, federal agencies, public sector entities,
and multilateral development banks
Equities
Other debt securities
Other securities
Total non-Canadian dollar-denominated
Total
$
$
$
$
$
October 31, 2025
Total Canadian dollar -denominated
$
$
$
$
$
Total non-Canadian dollar-denominated
Total
$
$
$
$
$
1
Unencumbered liquid assets include on-balance sheet assets, assets borrowed or purchased under resale agreements, and other off-balance sheet collateral received less encumbered
liquid assets.
2
Unencumbered liquid assets held in The Toronto-Dominion Bank, its domestic and foreign subsidiaries, and branches are summarized in the following table.
TABLE 33: SUMMARY OF UNENCUMBERED LIQUID ASSETS BY BANK, SUBSIDIARIES, AND BRANCHES
(millions of Canadian dollars)
As at
January 31
October 31
2026
2025
The Toronto-Dominion Bank (Parent)
$
$
Bank subsidiaries
Foreign branches
Total
$
$
The Bank’s monthly average liquid assets for the quarters ended January 31, 2026 and October 31, 2025, are summarized in the following table.
TABLE 34: SUMMARY OF AVERAGE LIQUID ASSETS BY TYPE AND CURRENCY
(millions of Canadian dollars, except as noted)
Average for the three months ended
Securities
received as
collateral from
securities
financing and
Total
Bank-owned
derivative
liquid
Encumbered
Unencumbered
liquid assets
transactions
assets
liquid assets
liquid assets
1
January 31, 2026
Cash and central bank reserves
$
17,315
$
–
$
17,315
$
1,411
$
15,904
Obligations of government, federal agencies, public sector
entities, and multilateral development banks
2
113,942
104,359
218,301
88,169
130,132
Equities
20,459
3,175
23,634
18,590
5,044
Other debt securities
6,434
6,533
12,967
9,691
3,276
Other securities
–
–
–
–
–
Total Canadian dollar-denominated
158,150
114,067
272,217
117,861
154,356
Cash and central bank reserves
85,966
–
85,966
177
85,789
Obligations of government, federal agencies, public sector
entities, and multilateral development banks
218,923
156,405
375,328
184,750
190,578
Equities
70,541
53,719
124,260
62,173
62,087
Other debt securities
78,777
20,676
99,453
32,621
66,832
Other securities
33,863
1,858
35,721
8,889
26,832
Total non-Canadian dollar-denominated
488,070
232,658
720,728
288,610
432,118
Total
$
646,220
$
346,725
$
992,945
$
406,471
$
586,474
October 31, 2025
Total Canadian dollar -denominated
$
157,515
$
118,748
$
276,263
$
120,942
$
155,321
Total non-Canadian dollar-denominated
479,616
224,723
704,339
280,804
423,535
Total
$
637,131
$
343,471
$
980,602
$
401,746
$
578,856
1
liquid assets.
2
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 37
Average unencumbered liquid assets held in The Toronto-Dominion Bank, its domestic and foreign subsidiaries, and branches are summarized in the following
table.
TABLE 35: SUMMARY OF AVERAGE UNENCUMBERED LIQUID ASSETS BY BANK, SUBSIDIARIES, AND BRANCHES
(millions of Canadian dollars)
Average for the three months ended
January 31
October 31
2026
2025
The Toronto-Dominion Bank (Parent)
$
259,779
$
250,998
Bank subsidiaries
300,135
305,921
Foreign branches
26,560
21,937
Total
$
586,474
$
578,856
ASSET ENCUMBRANCE
In the course of the Bank’s daily operations, assets are pledged to obtain funding, support trading and brokerage businesses, and participate in clearing and/or
settlement systems. TD has pledging policies in place that govern the amount of assets we encumber, ensuring sufficient assets are available to meet liquidity
requirements. A summary of on- and off-balance sheet encumbered and unencumbered assets is presented as follows.
TABLE 36: ENCUMBERED AND UNENCUMBERED ASSETS
(millions of Canadian dollars)
As at
Total Assets
Encumbered
Unencumbered
Total
Pledged as
Available as
Assets
Collateral
1
Other
2
Collateral
3
Other
4
January 31, 2026
Cash and due from banks
$
6,287
$
–
$
–
$
–
$
6,287
Interest-bearing deposits with banks
113,672
7,683
–
95,125
10,864
Securities, trading loans, and other
1,047,174
460,644
25,937
498,562
62,031
Derivatives
83,371
–
–
–
83,371
Loans, net of allowance for loan losses
931,368
44,744
104,354
64,249
718,021
Other assets
5
102,072
214
–
–
101,858
Total assets
$
2,283,944
$
513,285
$
130,291
$
657,936
$
982,432
October 31, 2025
Total assets
$
2,265,385
$
525,387
$
127,282
$
672,337
$
940,379
1
with participation in clearing houses and payment systems.
2
3
eligible collateral in the Federal Home Loan Bank System.
4
5
and other assets on the balance sheet not reported in the above categories.
LIQUIDITY STRESS TESTING AND CONTINGENCY FUNDING PLANS
In addition to the Bank’s internal liquidity stress metric, the Bank performs liquidity stress testing on multiple alternate scenarios. These scenarios consist of a mix
of TD-specific and market-wide stress events designed to evaluate the potential impact of risk factors material to the Bank’s risk profile. Liquidity risk assessments
are also part of the Bank’s Enterprise-Wide Stress Testing program.
The Bank maintains CFPs for the enterprise and material subsidiaries operating in foreign jurisdictions. As they provide a playbook for managing stressed
liquidity conditions, these plans are an integral component of the Bank’s overall liquidity risk management framework. The CFPs outline different contingency
levels based on the severity and duration of the liquidity event and identify recovery actions appropriate for each level. To support operational readiness, CFPs
provide key steps required to implement each recovery action. Regional CFPs identify recovery actions to address region-specific stress events. The actions and
governance structure outlined in the Bank’s CFP are aligned with the Bank’s Crisis Management Recovery Plan.
CREDIT RATINGS
Credit ratings may affect the Bank’s access to, and cost of, raising funding and its ability to engage in certain business activities on a cost-effective basis. Credit
ratings and outlooks provided by rating agencies reflect their views and methodologies and are subject to change based on several factors including the Bank’s
financial strength, competitive position, and liquidity, as well as factors not entirely within the Bank’s control, including conditions affecting the overall financial
services industry.
TABLE 37: CREDIT RATINGS
1
As at
January 31, 2026
Moody’s
S&P
Fitch
DBRS
Deposits/Counterparty
2
Aa1
A+
AA
AA
Legacy Senior Debt
3
Aa2
A+
AA
AA
Senior Debt
4
A2
A-
AA-
AA (low)
Covered Bonds
Aaa
–
AAA
AAA
Legacy Subordinated Debt – non-NVCC
A3
A-
A
A (high)
Tier 2 Subordinated Debt – NVCC
A3 (hyb)
BBB+
A
A (low)
AT1 Perpetual Debt – NVCC
Baa2 (hyb)
BBB-
BBB+
–
Limited Recourse Capital Notes – NVCC
Baa2 (hyb)
BBB-
BBB+
BBB (high)
Preferred Shares – NVCC
Baa2 (hyb)
BBB-
BBB+
Pfd-2
Short-Term Debt (Deposits)
P-1
A-1
F1+
R-1 (high)
Outlook
Stable
Stable
Negative
Stable
1
recommendations to purchase, sell, or hold a financial obligation in as much as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision
or withdrawal at any time by the rating organization.
2
3
4
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 38
The Bank regularly reviews the level of increased collateral its trading counterparties would require in the event of a downgrade of TD’s credit rating. The following
table presents the additional collateral that could have been contractually required to be posted to OTC derivative counterparties as of the reporting date in the
event of one, two, and three-notch downgrades of the Bank’s credit ratings.
TABLE 38: ADDITIONAL COLLATERAL REQUIREMENTS FOR RATING DOWNGRADES
1
(millions of Canadian dollars)
Average for the three months ended
January 31
October 31
2026
2025
One-notch downgrade
$
873
$
968
Two-notch downgrade
1,342
1,435
Three-notch downgrade
2,313
2,506
1
LIQUIDITY COVERAGE RATIO (LCR)
The LCR is a Basel III standard designed to ensure that banks have an adequate stock of unencumbered HQLA, consisting of cash or assets that can be
converted into cash, to meet their liquidity needs for a 30-calendar day liquidity stress scenario.
In accordance with OSFI’s LAR, the Bank must maintain a minimum LCR of 100%, except during periods of financial stress when institutions are permitted to
use their stock of HQLA. The Bank’s LCR is calculated according to the scenario parameters in the LAR guideline, including prescribed HQLA eligibility criteria and
haircuts, deposit run-off, and other outflow and inflow rates. LCR-eligible HQLA consist primarily of central bank reserves, sovereign-issued or sovereign-
guaranteed securities, and high-quality securities issued by non-financial entities.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 39
18
The following table summarizes the Bank’s average daily LCR as of the relevant dates.
TABLE 39: AVERAGE LIQUIDITY COVERAGE RATIO
1
(millions of Canadian dollars, except as noted)
Average for the three months ended
January 31, 2026
Total unweighted
Total weighted
value (average)
2
value (average)
3
High-quality liquid assets
Total high-quality liquid assets
$
n/a
4
$
341,809
Cash outflows
Retail deposits and deposits from small business customers, of which:
$
512,136
$
33,384
Stable deposits
268,789
8,064
Less stable deposits
243,347
25,320
Unsecured wholesale funding, of which:
401,551
194,417
Operational deposits (all counterparties) and deposits in networks of cooperative banks
151,468
35,617
Non-operational deposits (all counterparties)
225,074
133,791
Unsecured debt
25,009
25,009
Secured wholesale funding
n/a
56,000
Additional requirements, of which:
392,289
139,555
Outflows related to derivative exposures and other collateral requirements
85,605
75,186
Outflows related to loss of funding on debt products
12,007
12,007
Credit and liquidity facilities
294,677
52,362
Other contractual funding obligations
19,894
10,423
Other contingent funding obligations
872,798
13,283
Total cash outflows
$
n/a
$
447,062
Cash inflows
Secured lending
$
301,365
$
61,426
Inflows from fully performing exposures
26,681
12,153
Other cash inflows
124,014
124,014
Total cash inflows
$
452,060
$
197,593
Average for the three months ended
January 31, 2026
October 31, 2025
Total adjusted
Total adjusted
value
value
Total high-quality liquid assets
$
341,809
$
346,383
Total net cash outflows
249,469
265,844
Liquidity coverage ratio
137
%
130
%
1
January 31, 2026 is calculated as an average of the 61 daily data points in the quarter.
2
3
4
The Bank’s average LCR was 137% for the quarter ended January 31, 2026 and continues to meet regulatory requirements
.
The Bank holds a variety of liquid assets commensurate with its liquidity needs. Most of these liquid assets also qualify as HQLA under the OSFI LAR guideline.
The Bank’s Level 1 assets for the quarter ended January 31, 2026, as calculated according to OSFI LAR and the BCBS LCR requirements, represent 86% of total
HQLA (October 31, 2025 – 86%). In accordance with the OSFI LAR guideline, the Bank’s reported HQLA excludes excess HQLA from U.S. Banking operations to
reflect liquidity transfer considerations between U.S. Banking and affiliates as a result of the U.S. Federal Reserve Board’s regulations. By excluding excess
HQLA, the U.S. Banking LCR is effectively capped at 100% prior to total Bank consolidation.
As described in the “How TD Manages Liquidity Risk” section of the Bank’s 2025 MD&A, the Bank manages its HQLA and other liquidity buffers to the higher of
TD’s internal 90-day surplus requirement and its target buffers over regulatory requirements including those for LCR, NSFR, and the Net Cumulative Cash Flow
metrics.
18
The Bank’s expectations regarding liquidity levels are based on the Bank’s assumptions regarding certain factors, including product growth, strategic plans, and pace of share
repurchases under the Bank’s normal course issuer bid (which is subject to financial forecasts and capital requirements). The Bank’s assumptions are subject to inherent uncertainties
and may vary based on factors both within and outside the Bank’s control, including general market conditions, economic outlook and geopolitical matters. Refer to the “Risk Factors
That May Affect Future Results” section of this document for additional information about risks and uncertainties that may impact the Bank’s estimates.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 40
NET STABLE FUNDING RATIO (NSFR)
The NSFR is a Basel III metric calculated as the ratio of total available stable funding (ASF) to total required stable funding (RSF). The Bank must maintain an
NSFR equal to or above 100% in accordance with the LAR guideline. The Bank’s ASF comprises the Bank’s liability and capital instruments (including deposits
and wholesale funding). The assets that require stable funding are a function of the Bank’s on and off-balance sheet activities, their liquidity characteristics, and
OSFI’s LAR guideline requirements.
TABLE 40: NET STABLE FUNDING RATIO
1
(millions of Canadian dollars, except as noted)
As at
January 31, 2026
Unweighted value by residual maturity
6 months to
No
Less than
less than
More than
Weighted
maturity
2
6 months
1 year
1 year
value
3
Available Stable Funding Item
Capital
$
121,525
$
n/a
$
n/a
$
5,504
$
127,029
Regulatory capital
121,525
n/a
n/a
5,504
127,029
Other capital instruments
n/a
n/a
n/a
–
–
Retail deposits and deposits from small business customers:
467,152
73,276
32,821
28,715
558,938
Stable deposits
254,686
29,087
14,037
13,983
296,902
Less stable deposits
212,466
44,189
18,784
14,732
262,036
Wholesale funding:
269,400
459,409
84,942
238,343
458,145
Operational deposits
119,791
2,580
1
–
61,186
Other wholesale funding
149,610
456,829
84,941
238,343
396,959
Liabilities with matching interdependent assets
4
–
1,487
2,032
37,109
–
Other liabilities:
45,827
96,297
8,087
NSFR derivative liabilities
n/a
8,891
All other liabilities and equity not included in the above categories
45,827
77,844
2,949
6,613
8,087
Total Available Stable Funding
$
1,152,199
Required Stable Funding Item
Total NSFR high-quality liquid assets
$
$
$
$
$
61,166
Deposits held at other financial institutions for operational purposes
–
–
–
–
–
Performing loans and securities
136,722
309,423
126,521
667,975
793,885
Performing loans to financial institutions secured by Level 1 HQLA
–
79,004
5,307
215
9,592
Performing loans to financial institutions secured by non-Level 1
HQLA and unsecured performing loans to financial institutions
–
99,858
9,482
13,956
29,537
Performing loans to non-financial corporate clients, loans to retail
and small business customers, and loans to sovereigns, central
banks and PSEs, of which:
41,477
60,842
46,181
294,724
343,377
With a risk weight of less than or equal to 35% under the Basel II
standardized approach for credit risk
n/a
–
–
–
–
Performing residential mortgages, of which:
37,352
65,100
62,076
283,196
292,943
With a risk weight of less than or equal to 35% under the Basel II
standardized approach for credit risk
37,352
65,100
62,076
283,196
292,943
Securities that are not in default and do not qualify as HQLA,
including exchange-traded equities
57,892
4,618
3,474
75,886
118,437
Assets with matching interdependent liabilities
4
–
3,094
2,701
34,834
–
Other assets:
83,596
147,491
119,005
Physical traded commodities, including gold
30,963
26,908
Assets posted as initial margin for derivative contracts and
contributions to default funds of CCPs
–
–
–
21,577
18,341
NSFR derivative assets
–
–
8,653
–
NSFR derivative liabilities before deduction of variation margin
posted
24,788
1,239
All other assets not included in the above categories
52,633
82,539
2,028
7,905
72,516
Off-balance sheet items
865,140
31,331
Total Required Stable Funding
$
1,005,388
Net Stable Funding Ratio
115
%
As at
October 31, 2025
Total Available Stable Funding
$
1,174,124
Total Required Stable Funding
1,003,524
Net Stable Funding Ratio
117
%
1
2
positions, open maturity positions, non-HQLA equities, and physical traded commodities.
3
4
asset is still on balance sheet, cannot be used to fund any other assets and principal payments from the asset cannot be used for anything other than repaying the liability. As such, the
only interdependent assets and liabilities that qualify for this treatment at the Bank are the liabilities arising from the Canada Mortgage Bonds Program and their corresponding
encumbered assets.
The Bank’s NSFR for the quarter ended January 31, 2026 is 115% (October 31, 2025 – 117%), representing a surplus of $147 billion and adhering to regulatory
requirements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 41
FUNDING
The Bank has access to a variety of unsecured and secured funding sources. The Bank’s funding activities are conducted in accordance with liquidity risk
management policies that require assets be funded to the appropriate term and to a prudent diversification profile.
The Bank’s primary approach to funding is to maximize the use of deposits raised through its personal, wealth and business banking channels. The deposits
raised from these sources were approximately
% (October 31, 2025 –
%) of the Bank’s total funding. Non-personal deposit funding as reflected below does
not include the Bank’s Wholesale Banking deposits (including Corporate & Investment Banking).
TABLE 41: SUMMARY OF DEPOSIT FUNDING
(millions of Canadian dollars)
As at
January 31
October 31
2026
2025
Personal
$
$
Non-personal
Total
$
$
WHOLESALE FUNDING
The Bank maintains various registered external wholesale term (greater than 1 year) funding programs to provide access to diversified funding sources, including
asset securitization, covered bonds, and unsecured wholesale debt. The Bank raises term funding through Senior Notes, NHA MBS, notes backed by credit card
receivables (Evergreen Credit Card Trust) and home equity lines of credit (Genesis Trust II). The Bank’s wholesale funding is diversified by geography, currency,
and funding types. The Bank raises short-term (1 year or less) funding using certificates of deposit, and commercial paper.
The following table summarizes the registered term funding and capital programs by geography, with the related program size as at January 31, 2026.
Canada
United States
Europe
Capital Securities Program ($20 billion)
Canadian Senior Medium-Term Linked Notes
Program ($5 billion)
HELOC ABS Program (Genesis Trust II) ($7 billion)
U.S. SEC (F-3) Registered Capital and Debt
Program (US$75 billion)
U.K. Financial Conduct Authority (FCA) Registered
Legislative Covered Bond Program ($100 billion)
FCA Registered Global Medium-Term Note Program
(US$40 billion)
Non-Registered Structured Global Medium-Term
Linked Notes Program (US$20 billion)
The following table presents a breakdown of the Bank’s term debt by currency and funding type. Term funding as at January 31, 2026, was $191.9 billion
(October 31, 2025 – $192.0 billion).
Note that Table 42: Long-Term Funding and Table 43: Wholesale Funding do not include any funding accessed via repurchase transactions or securities financing.
TABLE 42: LONG-TERM FUNDING
1
As at
January 31
October 31
Long-term funding by currency
2026
2025
Canadian dollar
25
%
26
%
U.S. dollar
32
33
Euro
33
32
British pound
5
4
Other
5
5
Total
100
%
100
%
Long-term funding by type
Senior unsecured medium-term notes
52
%
53
%
Covered bonds
38
37
Mortgage securitization
2
8
8
Term asset-backed securities
2
2
Total
100
%
100
%
1
The table includes secured and unsecured, senior and subordinated notes – excluding structured notes and commercial paper – issued to external investors with
an original term-to-maturity of greater than one year.
2
Mortgage securitization excludes the residential mortgage trading business.
The Bank maintains depositor concentration limits in respect of short-term wholesale deposits so that it is not overly reliant on individual depositors for funding.
The Bank further limits short-term wholesale funding maturity concentration in an effort to mitigate refinancing risk during a stress event.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 42
The following table represents the remaining maturity of various sources of funding outstanding as at January 31, 2026 and October 31, 2025.
TABLE 43: WHOLESALE FUNDING
(millions of Canadian dollars)
As at
January 31
October 31
2026
2025
Less than
1 to 3
3 to 6
6 months
Up to 1
Over 1 to
Over
1 month
months
months
to 1 year
year
2 years
2 years
Total
Total
Deposits from banks
1
$
1,735
$
516
$
216
$
860
$
3,327
$
–
$
–
$
3,327
$
2,738
Bearer deposit notes
603
5,569
1,249
461
7,882
–
–
7,882
5,732
Certificates of deposit
13,643
27,298
21,943
36,933
99,817
21
–
99,838
90,513
Commercial paper
15,021
19,898
17,527
6,519
58,965
–
–
58,965
53,759
Covered bonds
–
10,028
3,420
9,710
23,158
19,851
29,523
72,532
70,558
Mortgage securitization
2
33
673
1,423
2,301
4,430
4,075
31,915
40,420
40,124
Legacy senior unsecured medium-term
notes
3
117
–
1,340
–
1,457
–
–
1,457
1,455
Senior unsecured medium-term notes
4
–
2,772
6,340
9,910
19,022
26,595
54,144
99,761
100,681
Subordinated notes and debentures
5
–
–
–
–
–
–
10,642
10,642
10,733
Term asset-backed securitization
1,640
2,214
3,257
5,523
12,634
1,311
1,454
15,399
15,702
Other
6
47,430
6,776
1,073
2,230
57,509
2,279
3,924
63,712
47,820
Total
$
80,222
$
75,744
$
57,788
$
74,447
$
288,201
$
54,132
$
131,602
$
473,935
$
439,815
Of which:
Secured
$
1,673
$
16,993
$
8,100
$
17,534
$
44,300
$
25,238
$
62,894
$
132,432
$
126,388
Unsecured
78,549
58,751
49,688
56,913
243,901
28,894
68,708
341,503
313,427
Total
$
80,222
$
75,744
$
57,788
$
74,447
$
288,201
$
54,132
$
131,602
$
473,935
$
439,815
1
2
3
including debt with an original term-to-maturity of less than 400 days.
4
regime (October 31, 2025 – $3.3 billion).
5
6
Includes fixed-term deposits from non-bank institutions (unsecured) of $36.8 billion (October 31, 2025 – $26.9 billion) and the remaining are non-term deposits.
Excluding the Wholesale Banking residential mortgage trading business, the Bank’s total mortgage-backed securities issued to external investors for the three
months ended January 31, 2026, were $1.1 billion (three months ended January 31, 2025 – $1.0 billion) and other asset-backed securities issued for the three
months ended January 31, 2026, were nil (three months ended January 31, 2025 – $0.2 billion). The Bank also issued $6.4 billion of unsecured medium-term
notes for the three months ended January 31, 2026 (three months ended January 31, 2025 – $10.8 billion). Covered bonds issued for the three months ended
January 31, 2026 were $2.3 billion (three months ended January 31, 2025 – nil).
MATURITY ANALYSIS OF ASSETS, LIABILITIES, AND OFF-BALANCE SHEET COMMITMENTS
The following table summarizes on-balance sheet and off-balance sheet categories by remaining contractual maturity. The values of credit instruments reported in
the following table represent the maximum amount of additional credit that the Bank could be obligated to extend should such instruments be fully drawn or
utilized. Since a significant portion of guarantees and commitments are expected to expire without being drawn upon, the total of the contractual amounts is not
representative of expected future liquidity requirements. These contractual obligations have an impact on the Bank’s short-term and long-term liquidity and capital
resource needs.
The maturity analysis presented does not depict the degree of the Bank’s maturity transformation or the Bank’s exposure to interest rate and liquidity risk. The
Bank’s objective is to fund its assets appropriately to protect against borrowing cost volatility and potential reductions to funding market availability. The Bank
utilizes stable non-maturity deposits (chequing and savings accounts) and term deposits as the primary source of long-term funding for the Bank’s non-trading
assets including personal and business term loans and the stable balance of revolving lines of credit. Additionally, the Bank issues long-term funding in respect of
such non-trading assets and raises short term funding primarily to finance trading assets. The liquidity of trading assets under stressed market conditions is
considered when determining the appropriate term of the funding.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 43
TABLE 44: REMAINING CONTRACTUAL MATURITY
(millions of Canadian dollars)
As at
January 31, 2026
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
$
$
$
$
$
$
$
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
1
Non-trading financial assets at fair value through
profit or loss
Derivatives
Financial assets designated at fair value through
profit or loss
Financial assets at fair value through other comprehensive
income
Debt securities at amortized cost, net of allowance
for credit losses
(1 )
Securities purchased under reverse repurchase
agreements
2
Loans
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Total loans
Allowance for loan losses
(8,566 )
(8,566 )
Loans, net of allowance for loan losses
Goodwill
3
Other intangibles
3
Land, buildings, equipment, other depreciable
assets, and right-of-use assets
3
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
$
$
$
$
$
$
$
$
Liabilities
Trading deposits
$
$
$
$
$
$
$
$
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at
fair value through profit or loss
Deposits
4,5
Personal
Banks
Business and government
Total deposits
Obligations related to securities sold short
1
Obligations related to securities sold under repurchase
agreements
2
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance-related liabilities
Other liabilities
Subordinated notes and debentures
Equity
Total liabilities and equity
$
$
$
$
$
$
$
$
$
$
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
$
$
$
$
$
$
$
$
$
Other commitments
8
Unconsolidated structured entity commitments
Total off-balance sheet commitments
$
$
$
$
$
$
$
$
$
$
1
Amount has been recorded according to the remaining contractual maturity of the underlying security.
2
3
4
5
months to 9 months’, $
6
7
8
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 44
TABLE 44: REMAINING CONTRACTUAL MATURITY
(millions of Canadian dollars)
As at
October 31, 2025
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
$
$
$
$
$
$
$
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
1
Non-trading financial assets at fair value through
profit or loss
Derivatives
Financial assets designated at fair value through
profit or loss
Financial assets at fair value through other comprehensive
income
Debt securities at amortized cost, net of allowance
for credit losses
(1 )
Securities purchased under reverse repurchase
agreements
2
Loans
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Total loans
Allowance for loan losses
(8,689 )
(8,689 )
Loans, net of allowance for loan losses
Goodwill
3
Other intangibles
3
Land, buildings, equipment, other depreciable
assets, and right-of-use assets
3
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
$
$
$
$
$
$
$
$
Liabilities
Trading deposits
$
$
$
$
$
$
$
$
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at
fair value through profit or loss
Deposits
4,5
Personal
Banks
Business and government
Total deposits
Obligations related to securities sold short
1
Obligations related to securities sold under repurchase
agreements
2
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance-related liabilities
Other liabilities
Subordinated notes and debentures
Equity
Total liabilities and equity
$
$
$
$
$
$
$
$
$
$
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
$
$
$
$
$
$
$
$
$
Other commitments
8
Unconsolidated structured entity commitments
Total off-balance sheet commitments
$
$
$
$
$
$
$
$
$
$
1
Amount has been recorded according to the remaining contractual maturity of the underlying security.
2
3
4
5
months to 1 year’, $
6
7
8
REGULATORY DEVELOPMENTS CONCERNING LIQUIDITY AND FUNDING
In May 2025, OSFI released draft guidelines for its 2026 proposed amendments to LAR for public consultation. Proposals introduce deposit categorizations for
measuring liquidity risks from structured notes and deposits sourced through non-bank financial intermediaries and clarify expectations for instruments with
contingent features and/or uncertain maturity profiles, particularly in relation to their early redemption characteristics and associated liquidity implications. Finalized
rules were set in January 2026 for implementation in May 2026.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 45
ISSB – IFRS S1 and IFRS S2
In March 2025, OSFI released updates to Guideline B-15 to ensure continued interoperability with the requirements of the final Canadian Sustainability Standards
Board (CSSB) standards. Key updates include postponing the implementation date for industry-based metrics and Scope 3 GHG emissions disclosures from fiscal
year end 2025 to 2028. The Bank’s 2025 annual sustainability report suite will incorporate the phased-in cross-industry metrics requirements, effective for
October 31, 2025.
In April 2025, the Canadian Securities Administrators (CSA) announced that it is pausing work on the development of a new mandatory climate-related disclosure
rule that is based on the two standards issued by the CSSB. The CSSB standards were released in December 2024 and are based on the international
sustainability standards issued by the International Sustainability Standards Board (ISSB). They set out the disclosure requirements for financially material
information about sustainability and climate-related risks and opportunities to meet investor information needs. For these standards to become mandatory
requirements in Canada, they would need to be incorporated into a CSA rule. The Bank continues to assess the impact of adopting these standards and to monitor
developments from various standard setters and regulators.
SECURITIZATION AND OFF-BALANCE SHEET ARRANGEMENTS
The Bank enters into securitization and off-balance sheet arrangements in the normal course of operations. The Bank is involved with structured entities (SEs) that
it sponsors, as well as entities sponsored by third parties. Refer to “Securitization and Off-Balance Sheet Arrangements” section, Note 9: Transfers of Financial
Assets and Note 10: Structured Entities of the Bank’s 2025 Annual Report for further details. There have been no significant changes to the Bank’s securitization
and off-balance sheet arrangements during the quarter ended January 31, 2026.
Securitization of Third-Party Originated Assets
Significant Unconsolidated Special Purpose Entities
The Bank securitizes third-party originated assets through Bank-sponsored SEs, including its multi-seller conduits which are not consolidated. Multi-seller conduits
securitize third-party originated assets. The Bank administers multi-seller conduits and provides liquidity facilities as well as securities distribution services; it may
also provide credit enhancements. TD’s total potential exposure to loss through the provision of liquidity facilities for multi-seller conduits was $56.5 billion as at
January 31, 2026 (October 31, 2025 – $57.5 billion). As at January 31, 2026, the Bank had funded exposure of $39.2 billion under such liquidity facilities relating to
outstanding issuances of asset-backed commercial paper (ABCP) (October 31, 2025 – $38.5 billion).
ACCOUNTING POLICIES AND ESTIMATES
The Bank’s unaudited Interim Consolidated Financial Statements have been prepared in accordance with IFRS. For details of the Bank’s accounting policies under
IFRS, refer to Note 2 of the Bank’s first quarter 2026 Interim Consolidated Financial Statements and 2025 Annual Consolidated Financial Statements. For details
of the Bank’s significant accounting judgments, estimates, and assumptions under IFRS, refer to Note 3 of the Bank’s first quarter 2026 Interim Consolidated
Financial Statements and the Bank’s 2025 Annual Consolidated Financial Statements.
CURRENT CHANGES IN ACCOUNTING POLICIES
There were no new accounting policies adopted by the Bank for the three months ended January 31, 2026.
ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS
The estimates used in the Bank’s accounting policies are essential to understanding its results of operations and financial condition. Some of the Bank’s policies
require subjective, complex judgments and estimates as they relate to matters that are inherently uncertain. Changes in these judgments or estimates and
changes to accounting standards and policies could have a materially adverse impact on the Bank’s Interim Consolidated Financial Statements. The Bank has
established procedures to ensure that accounting policies are applied consistently and that the processes for changing methodologies, determining estimates, and
adopting new accounting standards are well-controlled and occur in an appropriate and systematic manner.
Impairment – Expected Credit Loss Model
The ECL model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking economic environment.
There remains elevated economic uncertainty, and management continues to exercise expert credit judgment in assessing if an exposure has experienced
significant increase in credit risk since initial recognition and in determining the amount of ECLs at each reporting date. To the extent that certain effects are not
fully incorporated into the model calculations, temporary quantitative and qualitative adjustments have been applied, including for risks related to elevated
uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future periods.
FUTURE CHANGES IN ACCOUNTING POLICIES
There were no new accounting standards or amendments issued during the three months ended January 31, 2026. Refer to Note 4 of the Bank’s 2025 Annual
Consolidated Financial Statements for a description of future changes in accounting policies.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
During the most recent interim period, there have been no changes in the Bank’s policies and procedures and other processes that comprise its internal control
over financial reporting, that have materially affected, or are reasonably likely to materially affect, the Bank’s internal control over financial reporting. Refer to
Note 2 and Note 3 of the Bank’s first quarter 2026 Interim Consolidated Financial Statements for further information regarding the Bank’s changes to accounting
policies, procedures, and estimates.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 46
GLOSSARY
FINANCIAL AND BANKING TERMS
Adjusted Results:
Bank’s businesses and to measure the Bank’s overall performance. To arrive at
adjusted results, the Bank adjusts for “items of note”, from reported results. The
items of note relate to items which management does not believe are indicative
of underlying business performance.
Allowance for Credit Losses:
financial assets, including any off-balance sheet exposures, at the balance
sheet date. Allowance for credit losses consists of Stage 3 allowance for
impaired financial assets and Stage 2 and Stage 1 allowance for performing
financial assets and off-balance sheet instruments. The allowance is increased
by the provision for credit losses, decreased by write-offs net of recoveries and
disposals, and impacted by foreign exchange.
Amortized Cost:
measured at initial recognition minus principal repayments, plus or minus the
cumulative amortization, using EIRM, of any differences between the initial
amount and the maturity amount, and minus any reduction for impairment.
Assets under Administration (AUA):
customers where the Bank provides services of an administrative nature, such
as the collection of investment income and the placing of trades on behalf of the
clients (where the client has made his or her own investment selection). The
majority of these assets are not reported on the Bank’s Consolidated Balance
Sheet.
Assets under Management (AUM):
customers, managed by the Bank, where the Bank has discretion to make
investment selections on behalf of the client (in accordance with an investment
policy). In addition to the TD family of mutual funds, the Bank manages assets
on behalf of individuals, pension funds, corporations, institutions, endowments
and foundations. These assets are not reported on the Bank’s Consolidated
Balance Sheet. Some assets under management that are also administered by
the Bank are included in assets under administration.
Asset-Backed Commercial Paper (ABCP):
collateralized by other financial assets. Institutional investors usually purchase
such instruments in order to diversify their assets and generate short-term
gains.
Asset-Backed Securities (ABS):
payments are derived from and collateralized (or “backed”) by a specified pool
of underlying assets.
Average Common Equity:
Average common equity for the business segments
reflects the average allocated capital. The Bank’s methodology for allocating
capital to its business segments is largely aligned with the common equity
capital requirements under Basel III.
Average Interest-Earning Assets:
the Bank’s financial position, and is calculated as the average carrying value of
deposits with banks, loans and securities based on daily balances for the period
ending October 31 in each fiscal year.
Basic Earnings per Share (EPS):
dividing net income available to common shareholders by the weighted average
number of common shares outstanding for the period. Adjusted basic EPS is
calculated in the same manner using adjusted net income.
Basis Points (bps):
100 basis points.
Book Value per Share:
shareholders’ equity by number of common shares at the end of the period.
Carrying Value:
Consolidated Balance Sheet.
Catastrophe Claims:
occurred in the period, for which the aggregate insurance claims are equal to
or greater than an internal threshold of $5 million before reinsurance. The
Bank’s internal threshold may change from time to time.
Collateralized Mortgage Obligation (CMO):
obligations consisting of mortgage-backed securities that are separated and
issued as different classes of mortgage pass-through securities with different
terms, interest rates, and risks. CMOs by private issuers are collectively
referred to as non-agency CMOs.
Common Equity Tier 1 (CET1) Capital:
This is a primary Basel III capital
measure comprised mainly of common equity, retained earnings and qualifying
non-controlling interest in subsidiaries. Regulatory deductions made to arrive
at the CET1 Capital include goodwill and intangibles, unconsolidated
investments in banking, financial, and insurance entities, deferred tax assets,
defined benefit pension fund assets, and shortfalls in allowances.
Common Equity Tier 1 (CET1) Capital Ratio:
CET1 Capital ratio represents
the predominant measure of capital adequacy under Basel III
and equals CET1 Capital divided by RWA.
Compound Annual Growth Rate (CAGR):
time periods from the initial investment value to the ending investment value
assuming that the investment has been compounding over the time period.
Credit Valuation Adjustment (CVA):
CVA represents a capital charge that
measures credit risk due to default of derivative counterparties. This charge
requires banks to capitalize for the potential changes in counterparty credit
spread for the derivative portfolios.
Diluted EPS:
available to common shareholders by the weighted average number of
common shares outstanding adjusting for the effect of all potentially dilutive
common shares. Adjusted diluted EPS is calculated in the same manner using
adjusted net income.
Dividend Payout Ratio:
being paid to common shareholders in the form of dividends and is calculated
by dividing common dividends by net income available to common
shareholders. Adjusted dividend payout ratio is calculated in the same manner
using adjusted net income.
Dividend Yield:
year divided by the daily average closing stock price during the year.
Effective Income Tax Rate:
A rate and performance indicator calculated by
dividing the provision for income taxes as a percentage of net income before
taxes. Adjusted effective income tax rate is calculated in the same manner
using adjusted results.
Effective Interest Rate (EIR):
flows for the expected life of the financial instrument to its carrying value. The
calculation takes into account the contractual interest rate, along with any fees
or incremental costs that are directly attributable to the instrument and all other
premiums or discounts.
Effective Interest Rate Method (EIRM):
interest rate in a period based on the amount of a financial instrument’s book
value at the beginning of the accounting period. Under EIRM, the effective
interest rate, which is a key component of the calculation, discounts the
expected future cash inflows and outflows expected over the life of a financial
instrument.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 47
Efficiency Ratio:
calculated by taking the non-interest expenses as a percentage of total revenue.
A lower ratio indicates a more efficient business operation. Adjusted efficiency
ratio is calculated in the same manner using adjusted non-interest expenses
and adjusted total revenue.
Enhanced Disclosure Task Force (EDTF):
Established by the FSB in
May 2012, comprised of banks, analysts, investors, and auditors, with the goal
of enhancing the risk disclosures of banks and other financial institutions.
Expected Credit Losses (ECLs):
ECLs are the probability-weighted present
value of expected cash shortfalls over the remaining expected life of the
financial instrument and considers reasonable and supportable information
about past events, current conditions, and forecasts of future events and
economic conditions that impact the Bank’s credit risk assessment.
Fair Value:
a liability in an orderly transaction between market participants at the
measurement date, under current market conditions.
Fair value through other comprehensive income (FVOCI):
Under IFRS 9, if
the asset passes the contractual cash flows test (named SPPI), the business
model assessment determines how the instrument is classified. If the instrument
is being held to collect contractual cash flows, that is, if it is not expected to be
sold, it is measured as amortized cost. If the business model for the instrument
is to both collect contractual cash flows and potentially sell the asset, it is
measured at FVOCI.
Fair value through profit or loss (FVTPL):
Under IFRS 9, the classification is
dependent on two tests, a contractual cash flow test (named SPPI) and a
business model assessment. Unless the asset meets the requirements of both
tests, it is measured at fair value with all changes in fair value reported in profit
or loss.
Federal Deposit Insurance Corporation (FDIC):
A U.S. government
corporation which provides deposit insurance guaranteeing the safety of a
depositor’s accounts in member banks. The FDIC also examines and
supervises certain financial institutions for safety and soundness, performs
certain consumer-protection functions, and manages banks in receiverships
(failed banks).
Forward Contracts:
one party to the contract to buy and the other party to sell an asset for a fixed
price at a future date.
Futures:
price on a specified future date.
Hedging:
exposure to fluctuations in interest rates, foreign currency exchange rates, or
other market factors. The elimination or reduction of such exposure is
accomplished by engaging in capital markets activities to establish offsetting
positions.
Impaired Loans:
deterioration of credit quality to the extent that the Bank no longer has
reasonable assurance as to the timely collection of the full amount of principal
and interest.
Loss Given Default (LGD):
incur when a borrower defaults on a loan, which is expressed as a percentage
of exposure at default.
Mark-to-Market (MTM):
balance sheet date for financial instruments that are carried at fair value.
Master Netting Agreements:
have multiple derivative contracts with each other that provide for the net
settlement of all contracts through a single payment, in a single currency, in
the event of default or termination of any one contract.
Net Corporate Expenses:
Non-interest expenses related to corporate service
and control groups which are not allocated to a business segment.
Net Interest Margin:
percentage of average interest-earning assets to measure performance. This
metric is an indicator of the profitability of the Bank’s earning assets less the
cost of funding. Adjusted net interest margin is calculated in the same manner
using adjusted net interest income.
Non-Viability Contingent Capital (NVCC):
Instruments (preferred shares and
subordinated debt) that contain a feature or a provision that allows the financial
institution to either permanently convert these instruments into common shares
or fully write-down the instrument, in the event that the institution is no longer
viable.
Notional:
instruments are based.
Office of the Superintendent of Financial Institutions Canada (OSFI):
The
regulator of Canadian federally chartered financial institutions and federally
administered pension plans.
Operating Leverage:
A
non-GAAP measure that the Bank calculates as the
difference between the % change in adjusted revenue (U.S. Banking in source
currency) net of insurance service expense (ISE), and adjusted expenses
(U.S. Banking in US$) grossed up by the retailer program partners’ share of
PCL for the Bank’s U.S. strategic card portfolio. Collectively, these
adjustments provide a measure of operating leverage that management
believes is more reflective of underlying business performance.
Options:
right, but not the obligation, to buy or to sell a security, exchange rate, interest
rate, or other financial instrument or commodity at a predetermined price at or
by a specified future date.
Price-Earnings Ratio:
EPS based on a trailing four quarters to indicate market performance. Adjusted
price-earnings ratio is calculated in the same manner using adjusted EPS.
Probability of Default (PD):
to meet its scheduled repayments.
Provision for Credit Losses (PCL):
losses to bring it to a level that management considers adequate to reflect
expected credit-related losses on its portfolio.
Return on Common Equity (ROE):
as net income available to common shareholders as a percentage of average
common shareholders’ equity, utilized in assessing the Bank’s use of equity.
ROE for the business segments is calculated as the segment net income
available to common shareholders as a percentage of average allocated
capital. Adjusted ROE is calculated in the same manner using adjusted net
income.
Return on Tangible Common Equity (ROTCE):
measure calculated as reported net income available to common shareholders
after adjusting for the after-tax amortization of acquired intangibles, which are
treated as an item of note, as a percentage of average Tangible common
equity. Adjusted ROTCE is calculated in the same manner using adjusted net
income. Both measures can be utilized in assessing the Bank’s use of equity.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 48
Return on Risk-weighted Assets:
Net income available to common
shareholders as a percentage of average risk-weighted assets.
Risk-Weighted Assets (RWA):
Assets calculated by applying a regulatory risk-
weight factor to on and off-balance sheet exposures. The risk-weight factors are
established by the OSFI to convert on and off-balance sheet exposures to a
comparable risk level.
Securitization:
transferred to structures, which normally issue a series of asset-backed
securities to investors to fund the purchase of loans.
Solely Payments of Principal and Interest (SPPI):
financial asset that are consistent with a basic lending arrangement.
Swaps:
payment obligations and currencies on a notional principal for a specified period
of time.
Tangible common equity (TCE):
common shareholders’ equity less goodwill, imputed goodwill, and intangibles
on an investment in Schwab and other acquired intangible assets, net of related
deferred tax liabilities. It can be utilized in assessing the Bank’s use of equity.
Taxable Equivalent Basis (TEB):
that increases revenues and the provision for income taxes on certain tax-
exempt securities to an equivalent before-tax basis to facilitate comparison of
net interest income from both taxable and tax-exempt sources.
Tier 1 Capital Ratio:
capital, consisting primarily of common shareholders’ equity, retained earnings,
preferred shares and innovative instruments. Tier 1 Capital ratio is calculated as
Tier 1 Capital divided by RWA.
Total Capital Ratio:
Capital. Total Capital ratio is calculated as Total Capital divided by RWA.
Total Shareholder Return (TSR):
TD’s common shares. The return measures the change in shareholder value,
assuming dividends paid are reinvested in additional shares.
Trading-Related Revenue:
trading income (loss), net interest income on trading positions, and income from
financial instruments designated at FVTPL that are managed within a trading
portfolio. Trading-related revenue (TEB) in the Wholesale Banking segment is
also a non-GAAP financial measure and is calculated in the same manner,
including TEB adjustments. Both are used for measuring trading performance.
Value-at-Risk (VaR):
and to calculate the regulatory capital required for market risk in trading
activities. VaR measures the adverse impact that potential changes in market
rates and prices could have on the value of a portfolio over a specified period of
time.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 49
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
INTERIM CONSOLIDATED BALANCE SHEET
(unaudited)
(As at and in millions of Canadian dollars)
January 31, 2026
October 31, 2025
ASSETS
Cash and due from banks
$
$
Interest-bearing deposits with banks
Trading loans, securities, and other
Non-trading financial assets at fair value through profit or loss
Derivatives
Financial assets designated at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Debt securities at amortized cost, net of allowance for credit losses (Notes 4, 5)
Securities purchased under reverse repurchase agreements
Loans (Notes 4, 6)
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government
Allowance for loan losses
(8,566 )
(8,689 )
Loans, net of allowance for loan losses
Other
Goodwill
Other intangibles
Land, buildings, equipment, other depreciable assets and right-of-use assets
Deferred tax assets
Amounts receivable from brokers, dealers, and clients
Other assets
Total assets
$
$
LIABILITIES
Trading deposits
$
$
Derivatives
Securitization liabilities at fair value
Financial liabilities designated at fair value through profit or loss
Deposits (Notes 4, 9)
Personal
Banks
Business and government
Other
Obligations related to securities sold short
Obligations related to securities sold under repurchase agreements
Securitization liabilities at amortized cost
Amounts payable to brokers, dealers, and clients
Insurance contract liabilities
Other liabilities
Subordinated notes and debentures (Notes 4, 11)
Total liabilities
EQUITY
Shareholders’ Equity
Common shares
Preferred shares and other equity instruments
Treasury – common shares
(5 )
Treasury – preferred shares and other equity instruments
(11 )
(4 )
Contributed surplus
Retained earnings
Accumulated other comprehensive income (loss)
Total equity
Total liabilities and equity
$
$
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 50
INTERIM CONSOLIDATED STATEMENT OF INCOME
(unaudited)
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2026
2025
Interest income
1
Loans
$
$
Reverse repurchase agreements
Securities
Interest
Dividends
Deposits with banks
Interest expense (Note 19)
Deposits
Securitization liabilities
Subordinated notes and debentures
Repurchase agreements and short sales
Other
Net interest income
Non-interest income
Investment and securities services
Credit fees
Trading income (loss)
Service charges
Card services
Insurance revenue
Other income (loss)
(884 )
Total revenue
Provision for (recovery of) credit losses (Note 6)
Insurance service expenses
Non-interest expenses
Salaries and employee benefits
Occupancy, including depreciation
Technology and equipment, including depreciation
Amortization of other intangibles
Communication and marketing
Restructuring charges
Brokerage-related and sub-advisory fees
Professional, advisory and outside services
Other
Income before income taxes and share of net income from investment
in Schwab
Provision for (recovery of) income taxes
Share of net income from investment in Schwab (Note 7)
Net income
Preferred dividends and distributions on other equity instruments
Net income available to common shareholders
$
$
Earnings per share
Basic
$
$
Diluted
Dividends per common share
1
rate method (EIRM).
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 51
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2026
2025
Net income
$
$
Other comprehensive income (loss)
Items that will be subsequently reclassified to net income
Net change in unrealized gain/(loss) on financial assets at fair value
through other comprehensive income
Unrealized gain/(loss)
Reclassification to earnings of net loss/(gain)
(4 )
Allowance for credit losses recognized in earnings
(1 )
Income taxes relating to:
Unrealized gain/(loss)
(89 )
(35 )
Reclassification to earnings of net loss/(gain)
Net change in unrealized foreign currency translation gain/(loss) on
investments in foreign operations, net of hedging activities
Unrealized gain/(loss)
(3,552 )
Reclassification to earnings of net loss/(gain)
Net gain/(loss) on hedges
(3,576 )
Reclassification to earnings of net loss/(gain) on hedges
Income taxes relating to:
Net gain/(loss) on hedges
(670 )
Reclassification to earnings of net loss/(gain) on hedges
(1,812 )
Net change in gain/(loss) on derivatives designated as cash flow hedges
Gain/(loss)
(1,959 )
Reclassification to earnings of loss/(gain)
(1,184 )
Income taxes relating to:
Gain/(loss)
(381 )
Reclassification to earnings of loss/(gain)
(342 )
(446 )
Share of other comprehensive income (loss) from investment in Schwab
(338 )
Items that will not be subsequently reclassified to net income
Remeasurement gain/(loss) on employee benefit plans
Gain/(loss)
(69 )
Income taxes
(5 )
(50 )
Change in net unrealized gain/(loss) on equity securities designated at
fair value through other comprehensive income
Net unrealized gain/(loss)
Income taxes
(8 )
(3 )
Gain/(loss) from changes in fair value due to own credit risk on
financial liabilities designated at fair value through profit or loss
Gain/(loss)
(17 )
(10 )
Income taxes
(13 )
(7 )
Total other comprehensive income (loss)
(2,056 )
Total comprehensive income (loss)
$
$
Available to:
Common shareholders
$
$
Preferred shareholders and other equity instrument holders
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 52
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(unaudited)
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Common shares (Note 12)
Balance at beginning of period
$
$
Proceeds from shares issued on exercise of stock options
Shares issued as a result of dividend reinvestment plan
Purchase of shares for cancellation and other
(284 )
Balance at end of period
Preferred shares and other equity instruments (Note 12)
Balance at beginning of period
Issuance of shares and other equity instruments
Redemption of shares and other equity instruments
(500 )
Balance at end of period
Treasury – common shares (Note 12)
Balance at beginning of period
(17 )
Purchase of shares
(3,314 )
(3,504 )
Sale of shares
Balance at end of period
(5 )
(38 )
Treasury – preferred shares and other equity instruments (Note 12)
Balance at beginning of period
(4 )
(18 )
Purchase of shares and other equity instruments
(162 )
(1,120 )
Sale of shares and other equity instruments
Balance at end of period
(11 )
(51 )
Contributed surplus
Balance at beginning of period
Net premium (discount) on sale of treasury instruments
(12 )
Issuance of stock options, net of options exercised
Other
(3 )
Balance at end of period
Retained earnings
Balance at beginning of period
Net income available to equity instrument holders
Common dividends
(1,811 )
(1,836 )
Preferred dividends and distributions on other equity instruments
(101 )
(86 )
Share and other equity instrument issue expenses
(2 )
Net premium on repurchase of common shares and redemption of preferred shares and other
equity instruments
(2,162 )
Remeasurement gain/(loss) on employee benefit plans
(50 )
Realized gain/(loss) on equity securities designated at fair value through
other comprehensive income
Balance at end of period
Accumulated other comprehensive income (loss)
Net unrealized gain/(loss) on financial assets at fair value through other comprehensive income:
Balance at beginning of period
(208 )
Other comprehensive income (loss)
Allowance for credit losses
(1 )
Balance at end of period
(99 )
Net unrealized gain/(loss) on equity securities designated at fair value through
other comprehensive income:
Balance at beginning of period
Other comprehensive income (loss)
Reclassification of loss/(gain) to retained earnings
(14 )
(5 )
Balance at end of period
Gain/(loss) from changes in fair value due to own credit risk on financial liabilities
designated at fair value through profit or loss:
Balance at beginning of period
(28 )
(22 )
Other comprehensive income (loss)
(13 )
(7 )
Balance at end of period
(41 )
(29 )
Net unrealized foreign currency translation gain/(loss) on investments in foreign
operations, net of hedging activities:
Balance at beginning of period
Other comprehensive income (loss)
(1,812 )
Balance at end of period
Net gain/(loss) on derivatives designated as cash flow hedges:
Balance at beginning of period
(769 )
(2,924 )
Other comprehensive income (loss)
(446 )
Balance at end of period
(1,215 )
(2,719 )
Share of accumulated other comprehensive income (loss) from investment in Schwab
(2,208 )
Total accumulated other comprehensive income
Total equity
$
$
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 53
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2026
2025
Cash flows from (used in) operating activities
Net income
$
$
Adjustments to determine net cash flows from (used in) operating activities
Provision for (recovery of) credit losses
Depreciation
Amortization of other intangibles
Net securities loss/(gain)
(3 )
Share of net income from investment in Schwab
(231 )
Deferred taxes
(70 )
Changes in operating assets and liabilities
Interest receivable and payable
(80 )
(237 )
Obligations related to securities sold under repurchase agreements
(7,368 )
(8,044 )
Securities purchased under reverse repurchase agreements
(13,902 )
Obligations related to securities sold short
(2,340 )
Trading loans, securities, and other
(14,752 )
(23,085 )
Loans net of securitization and sales
(6,527 )
(17,124 )
Deposits
(17,514 )
Derivatives
Non-trading financial assets at fair value through profit or loss
(1,030 )
(941 )
Financial assets and liabilities designated at fair value through profit or loss
Securitization liabilities
Current income taxes
(103 )
(1,581 )
Amounts receivable and payable from brokers, dealers, and clients
(7,776 )
(3,979 )
Other, including unrealized foreign currency translation loss/(gain)
(16,583 )
Net cash from (used in) operating activities
(50,279 )
Cash flows from (used in) financing activities
Issuance of subordinated notes and debentures
Redemption or repurchase of subordinated notes and debentures
(6 )
(67 )
Common shares issued, net of issuance costs
Repurchase of common shares, including tax on net value of share repurchases
(2,446 )
Preferred shares and other equity instruments issued, net of issuance costs
Redemption of preferred shares and other equity instruments
(500 )
Sale of treasury shares and other equity instruments
Purchase of treasury shares and other equity instruments
(3,476 )
(4,624 )
Dividends paid on shares and distributions paid on other equity instruments
(141 )
(1,792 )
Repayment of lease liabilities
(163 )
(169 )
Net cash from (used in) financing activities
(2,664 )
Cash flows from (used in) investing activities
Interest-bearing deposits with banks
(6,928 )
Activities in financial assets at fair value through other comprehensive income
Purchases
(12,012 )
(20,977 )
Proceeds from maturities
Proceeds from sales
Activities in debt securities at amortized cost
Purchases
(12,045 )
(7,133 )
Proceeds from maturities
Proceeds from sales
Net purchases of land, buildings, equipment, other depreciable assets, and other intangibles
(531 )
(497 )
Net cash from (used in) investing activities
(10,963 )
Effect of exchange rate changes on cash and due from banks
(183 )
Net increase (decrease) in cash and due from banks
(1,225 )
Cash and due from banks at beginning of period
Cash and due from banks at end of period
$
$
Supplementary disclosure of cash flows from operating activities
Amount of income taxes paid (refunded) during the period
$
$
Amount of interest paid during the period
Amount of interest received during the period
Amount of dividends received during the period
The accompanying Notes are an integral part of these Interim Consolidated Financial Statements.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 54
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 1: NATURE OF OPERATIONS
CORPORATE INFORMATION
The Toronto-Dominion Bank is a bank chartered under the
Bank Act (Canada)
. The shareholders of a bank are not, as shareholders, liable for any liability, act, or
default of the bank except as otherwise provided under the
Bank Act (Canada)
. The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group (“TD” or the “Bank”). The Bank was formed through the amalgamation on February 1, 1955, of The Bank of Toronto (chartered in 1855) and The
Dominion Bank (chartered in 1869). The Bank is incorporated and domiciled in Canada with its registered and principal business offices located at 66 Wellington
Street West, Toronto, Ontario. TD serves customers in four business segments operating in a number of locations in key financial centres around the globe:
Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking.
BASIS OF PREPARATION
The accompanying Interim Consolidated Financial Statements have been prepared on a condensed basis in accordance with International Accounting Standards
34,
Interim Financial Reporting
of the Bank’s 2025 Annual Consolidated Financial Statements, including the accounting requirements of the Office of the Superintendent of Financial Institutions
Canada (OSFI), which were consistently applied to all periods presented. The Interim Consolidated Financial Statements are presented in Canadian dollars,
unless otherwise indicated.
Certain comparative amounts have been revised to conform with the presentation adopted in the current period.
The preparation of the Interim Consolidated Financial Statements requires that management make judgments, estimates, and assumptions regarding the
reported amount of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities, as further described in Note 3 of the Bank’s 2025
Annual Consolidated Financial Statements and in Note 3 of this report. Accordingly, actual results may differ from estimated amounts as future confirming events
occur.
The Bank’s Interim Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar
circumstances. All intercompany transactions, balances, and unrealized gains and losses on transactions are eliminated on consolidation.
The Interim Consolidated Financial Statements for the three months ended January 31, 2026, were approved and authorized for issue by the Bank’s Board of
Directors on February 25, 2026, in accordance with a recommendation of the Audit Committee.
As the Interim Consolidated Financial Statements do not include all of the disclosures normally provided in the Annual Consolidated Financial Statements, they
should be read in conjunction with the Bank’s 2025 Annual Consolidated Financial Statements and the accompanying Notes, and the shaded sections of the 2025
Management’s Discussion and Analysis (MD&A). The risk management policies and procedures of the Bank are provided in the MD&A. The shaded sections of
the “Managing Risk” section of the MD&A in this report, relating to market, liquidity, and insurance risks, are an integral part of these Interim Consolidated Financial
Statements, as permitted by International Financial Reporting Standards.
NOTE 2: CURRENT AND FUTURE CHANGES IN ACCOUNTING POLICIES
CURRENT CHANGES IN ACCOUNTING POLICIES
There were no new accounting policies adopted by the Bank for the three months ended January 31, 2026.
FUTURE CHANGES IN ACCOUNTING POLICIES
There were no new accounting standards or amendments issued during the three months ended January 31, 2026. Refer to Note 4 of the Bank’s 2025 Annual
Consolidated Financial Statements for a description of future changes in accounting policies.
NOTE 3: SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS
The estimates used in the Bank’s accounting policies are essential to understanding its results of operations and financial condition. Some of the Bank’s policies
require subjective, complex judgments and estimates as they relate to matters that are inherently uncertain. Changes in these judgments or estimates and
changes to accounting standards and policies could have a materially adverse impact on the Bank’s Interim Consolidated Financial Statements. The Bank has
established procedures to ensure that accounting policies are applied consistently and that the processes for changing methodologies, determining estimates, and
adopting new accounting standards are well-controlled and occur in an appropriate and systematic manner. Refer to Note 3 of the Bank’s 2025 Annual
Consolidated Financial Statements for a description of significant accounting judgments, estimates, and assumptions.
Impairment – Expected Credit Loss Model
The expected credit loss (ECL) model requires the application of judgments, estimates, and assumptions in the assessment of the current and forward-looking
economic environment. There remains elevated economic uncertainty, and management continues to exercise expert credit judgment in assessing if an exposure
has experienced significant increase in credit risk since initial recognition and in determining the amount of ECLs at each reporting date. To the extent that certain
effects are not fully incorporated into the model calculations, temporary quantitative and qualitative adjustments have been applied, including for risks related to
elevated uncertainty associated with policy and trade, and such adjustments will be updated as appropriate in future periods.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 55
NOTE 4: FAIR VALUE MEASUREMENTS
There have been no significant changes to the Bank’s approach and methodologies used to determine fair value measurements for the three months ended
January 31, 2026.
(a)
The following table reflects the fair value of the Bank’s financial assets and liabilities not carried at fair value.
Financial Assets and Liabilities not carried at Fair Value
1
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Carrying
Fair
Carrying
Fair
value
value
value
value
FINANCIAL ASSETS
Debt securities at amortized cost, net of allowance for credit losses
Government and government-related securities
$
$
$
$
Other debt securities
Total debt securities at amortized cost, net of allowance for credit losses
Total loans, net of allowance for loan losses
Total financial assets not carried at fair value
$
$
$
$
FINANCIAL LIABILITIES
Deposits
$
$
$
$
Securitization liabilities at amortized cost
Subordinated notes and debentures
Total financial liabilities not carried at fair value
$
$
$
$
1
This table excludes financial assets and liabilities where the carrying value approximates their fair value.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 56
(b)
FAIR VALUE HIERARCHY
The following table presents the levels within the fair value hierarchy for each of the assets and liabilities measured at fair value on a recurring basis as at
January 31, 2026 and October 31, 2025.
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
FINANCIAL ASSETS AND COMMODITIES
Trading loans, securities, and other
1
Government and government-related securities
Canadian government debt
Federal
$
$
$
$
$
$
$
$
Provinces
U.S. federal, state, municipal governments,
Other OECD
2
Mortgage-backed securities
Other debt securities
Canadian issuers
Other issuers
Equity securities
Trading loans
Commodities
Retained interests
Non-trading financial assets at fair value
through profit or loss
Securities
Loans
Derivatives
Interest rate contracts
Foreign exchange contracts
Credit contracts
Equity contracts
Commodity and other contracts
Financial assets designated at
fair value through profit or loss
Securities
1
Financial assets at fair value through other
comprehensive income
Government and government-related securities
Canadian government debt
Federal
Provinces
U.S. federal, state, municipal governments,
Other OECD government-guaranteed debt
Mortgage-backed securities
Other debt securities
Asset-backed securities
Corporate and other debt
Equity securities
Loans
Securities purchased under reverse
repurchase agreements
FINANCIAL LIABILITIES
Trading deposits
Derivatives
Interest rate contracts
Foreign exchange contracts
Credit contracts
Equity contracts
Commodity and other contracts
Securitization liabilities at fair value
Financial liabilities designated at fair value
through profit or loss
Obligations related to securities sold short
1
Obligations related to securities sold
under repurchase agreements
1
Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
2
Organisation for Economic Co-operation and Development (OECD).
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 57
(c)
The Bank’s policy is to record transfers of assets and liabilities between the different levels of the fair value hierarchy using the fair values as at the end of each
reporting period. Assets and liabilities are transferred between Level 1 and Level 2 depending on whether there is sufficient frequency and volume in an active
market.
During the three months ended January 31, 2026, the Bank transferred $
value through other comprehensive income (FVOCI), and $
months ended January 31, 2026, the Bank transferred $
$
three months ended January 31, 2025.
There were no significant transfers between Level 2 and Level 3 during the three months ended January 31, 2026 and January 31, 2025.
There were no significant changes to the unobservable inputs and sensitivities for assets and liabilities classified as Level 3 during the three months ended
January 31, 2026 and January 31, 2025.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 58
(d)
RECONCILIATION OF CHANGES IN FAIR VALUE FOR LEVEL 3 ASSETS AND LIABILITIES
The following tables set out changes in fair value of all assets and liabilities measured at fair value using significant Level 3 unobservable inputs for the three
months ended January 31, 2026 and January 31, 2025.
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities
(millions of Canadian dollars)
Change in
unrealized
Fair
Total realized and
Fair
gains
value as at
unrealized gains (losses)
Movements
1
Transfers
value as at
(losses) on
November 1
Included
Included
Purchases/
Sales/
Into
Out of
January 31
instruments
2025
in income
2
in OCI
3,4
Issuances
Settlements
Level 3
Level 3
2026
still held
5
FINANCIAL ASSETS
Trading loans, securities,
and other
Other debt securities
$
$
$
$
$
(4 )
$
$
$
$
(4 )
Equity securities
(2 )
Trading loans
(114 )
(115 )
(4 )
(4 )
Non-trading financial
assets at fair value
through profit or loss
Securities
(4 )
(14 )
(4 )
(14 )
Financial assets at fair value
through other
comprehensive income
Other debt securities
Equity securities
(62 )
$
$
$
$
$
(62 )
$
$
$
$
FINANCIAL LIABILITIES
Trading deposits
6
$
(273 )
$
$
$
$
$
$
$
(224 )
$
Derivatives
7
Interest rate contracts
(68 )
(62 )
Foreign exchange contracts
(2 )
(3 )
(1 )
Equity contracts
(155 )
(1 )
(120 )
Commodity and other contracts
(55 )
(1 )
(17 )
(280 )
(1 )
(200 )
Financial liabilities designated
at fair value
through profit or loss
(2 )
(6 )
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities
(millions of Canadian dollars)
Change in
unrealized
Fair
Total realized and
Fair
gains
value as at
unrealized gains (losses)
Movements
1
Transfers
value as at
(losses) on
November 1
Included
Included
Purchases/
Sales/
Into
Out of
January 31
instruments
2024
in income
2
in OCI
4
Issuances
Settlements
Level 3
Level 3
2025
still held
5
FINANCIAL ASSETS
Trading loans, securities,
and other
Other debt securities
$
$
$
$
$
(15 )
$
$
$
$
(1 )
Equity securities
(7 )
(22 )
(1 )
Non-trading financial
assets at fair value
through profit or loss
Securities
(19 )
(19 )
Financial assets at fair value
through other
comprehensive income
Other debt securities
(4 )
Equity securities
(183 )
$
$
$
$
$
(187 )
$
$
$
$
FINANCIAL LIABILITIES
Trading deposits
6
$
(505 )
$
$
$
(72 )
$
$
$
$
(459 )
$
Derivatives
7
Interest rate contracts
(158 )
(6 )
(155 )
Foreign exchange contracts
Equity contracts
(24 )
(5 )
(1 )
(29 )
(7 )
Commodity and other contracts
(10 )
(4 )
(191 )
(167 )
Financial liabilities designated
at fair value through profit
or loss
(24 )
(6 )
(1 )
1
Includes foreign exchange.
2
3
4
5
6
7
derivative liabilities of $
been netted in this table for presentation purposes only.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 59
NOTE 5: SECURITIES
(a)
UNREALIZED SECURITIES GAINS (LOSSES)
The following table summarizes the unrealized gains and losses as at January 31, 2026 and October 31, 2025.
Unrealized Gains (Losses) for Securities at Fair Value Through Other Comprehensive Income
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Cost/
Gross
Gross
Cost/
Gross
Gross
amortized
unrealized
unrealized
Fair
amortized
unrealized
unrealized
Fair
cost
1
gains
(losses)
value
cost
1
gains
(losses)
value
Government and government-related
securities
Canadian government debt
Federal
$
$
$
(57 )
$
$
$
$
(88 )
$
Provinces
(2 )
(11 )
U.S. federal, state, municipal governments, and
(38 )
(54 )
Other OECD government-guaranteed debt
(4 )
Mortgage-backed securities
(1 )
(2 )
(98 )
(159 )
Other debt securities
Asset-backed securities
(12 )
(15 )
Corporate and other debt
(24 )
(26 )
(36 )
(41 )
Total debt securities
(134 )
(200 )
Equity securities
Common shares
(25 )
(22 )
Preferred shares
(79 )
(79 )
(104 )
(101 )
Total securities at fair value through
$
$
$
(238 )
$
$
$
$
(301 )
$
1
Includes the foreign exchange translation of amortized cost balances at the period-end spot rate.
(b)
EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
The Bank designated certain equity securities at FVOCI.
The following table summarizes the fair value of equity securities designated at FVOCI as at
January 31, 2026 and October 31, 2025, and dividend income recognized on these securities for the three months ended January 31, 2026 and January 31, 2025.
Equity Securities Designated at Fair Value Through Other Comprehensive Income
(millions of Canadian dollars)
As at
For the three months ended
January 31, 2026
October 31, 2025
January 31, 2026
January 31, 2025
Fair value
Dividend income recognized
Common shares
$
$
$
$
Preferred shares
Total
$
$
$
$
The Bank disposed of certain equity securities in line with the Bank’s investment strategy and disposed of Federal Home Loan Bank (FHLB) stock in accordance
with FHLB member stockholding requirements, as follows:
Equity Securities Net Realized Gains (Losses)
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Equity Securities
Fair value
$
$
Cumulative realized gain/(loss)
FHLB Stock
Fair value
Cumulative realized gain/(loss)
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 60
(c)
DEBT SECURITIES NET REALIZED GAINS (LOSSES)
The Bank disposed of certain debt securities measured at amortized cost and FVOCI during the quarter.
The following table summarizes the net realized gains
and losses on securities disposed of during the three months ended January 31, 2026 and January 31, 2025, which are included in Other income (loss) on the
Interim Consolidated Statement of Income.
Debt Securities Net Realized Gains (Losses)
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
1
Debt securities at amortized cost
$
(1 )
$
(911 )
Debt securities at fair value through other comprehensive income
(9 )
Total
$
$
(920 )
1
Includes $
the Bank’s 2025 Annual Consolidated Financial Statements for additional information regarding the asset limitation on TD’s two U.S. bank subsidiaries.
(d)
CREDIT QUALITY OF DEBT SECURITIES
The Bank evaluates non-retail credit risk on an individual borrower basis, using both a borrower risk rating (BRR) and facility risk rating, as detailed in the shaded
area of the “Managing Risk” section of the 2025 MD&A. This system is used to assess all non-retail exposures, including debt securities.
The following table provides the gross carrying amounts of debt securities measured at amortized cost and debt securities at FVOCI by internal risk rating for credit
risk management purposes, presenting separately those debt securities that are subject to Stage 1, Stage 2, and Stage 3 allowances. Refer to the “Allowance for
Credit Losses” table in Note 6 for details regarding the allowance and provision for credit losses on debt securities.
Debt Securities by Risk Rating
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Debt securities
1
Investment grade
$
$
$
n/a
2
$
$
$
$
n/a
$
Non-investment grade
n/a
n/a
Watch and classified
n/a
n/a
n/a
n/a
Default
n/a
n/a
n/a
n/a
Total debt securities
Allowance for credit losses on debt securities
at amortized cost
Total debt securities, net of allowance
$
$
$
$
$
$
$
$
1
Includes debt securities backed by government-guaranteed loans of $
on the issuer’s credit risk.
2
As at January 31, 2026, total debt securities, net of allowance, in the table above, include debt securities measured at amortized cost, net of allowance, of
$
difference between probability-weighted ECLs and base ECLs on debt securities at FVOCI and at amortized cost as at both January 31, 2026 and
October 31, 2025, was insignificant.
NOTE 6: LOANS, IMPAIRED LOANS, AND ALLOWANCE FOR CREDIT LOSSES
(a)
LOANS
The following table provides details regarding the Bank’s loans as at January 31, 2026 and October 31, 2025.
Loans
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Residential mortgages
$
$
Consumer instalment and other personal
Credit card
Business and government
Loans at FVOCI
1
Total loans
Total allowance for loan losses
Total loans, net of allowance
$
$
1
Included in Financial assets at fair value through other comprehensive income on the Interim Consolidated Balance Sheet.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 61
Business and government loans and loans at FVOCI are grouped together as reflected below for presentation in the “Loans by Risk Ratings” table.
Loans – Business and Government
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Loans at amortized cost
$
$
Loans at FVOCI
1
Loans
Allowance for loan losses
Loans, net of allowance
$
$
1
Included in Financial assets at fair value through other comprehensive income on the Interim Consolidated Balance Sheet.
(b)
CREDIT QUALITY OF LOANS
In the retail portfolio, including individuals and small businesses, the Bank manages exposures on a pooled basis, using predictive credit scoring techniques. For
non-retail exposures, each borrower is assigned a BRR that reflects the probability of default (PD) of the borrower using proprietary industry and sector specific
risk models and expert judgment. Refer to the shaded areas of the “Managing Risk” section of the 2025 MD&A for further details, including the mapping of PD
ranges to risk levels for retail exposures as well as the Bank’s 21-point BRR scale to risk levels and external ratings for non-retail exposures.
The following table provides the gross carrying amounts of loans and credit risk exposures on loan commitments and financial guarantee contracts by internal risk
rating for credit risk management purposes, presenting separately those that are subject to Stage 1, Stage 2, and Stage 3 allowances.
Loans by Risk Rating
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential mortgages
1,2,3
Low Risk
$
$
$
n/a
$
$
$
$
n/a
$
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Consumer instalment and other personal
4
Low Risk
n/a
n/a
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Credit card
Low Risk
n/a
n/a
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Business and government
1,2,3,5
Investment grade or Low/Normal Risk
n/a
n/a
Non-investment grade or Medium Risk
n/a
n/a
Watch and classified or High Risk
Default
n/a
n/a
n/a
n/a
Total loans
Allowance for loan losses
Loans, net of allowance
Total loans
Total allowance for loan losses
Total loans, net of allowance
$
$
$
$
$
$
$
$
1
Includes impaired loans with a balance of $
exceeded the loan amount.
2
Excludes trading loans and non-trading loans at fair value through profit or loss (FVTPL) with a fair value of $
– $
3
Includes insured mortgages of $
4
5
Includes loans guaranteed by government agencies of $
the borrowers’ credit risk.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 62
Loans by Risk Rating
(Continued)
1
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Retail Exposures
2
Low Risk
$
$
$
n/a
$
$
$
$
n/a
$
Normal Risk
n/a
n/a
Medium Risk
n/a
n/a
High Risk
Default
n/a
n/a
n/a
n/a
Non-Retail Exposures
3
Investment grade
n/a
n/a
Non-investment grade
n/a
n/a
Watch and classified
Default
n/a
n/a
n/a
n/a
Total off-balance sheet credit
instruments
Allowance for off-balance sheet credit
instruments
Total off-balance sheet credit
instruments, net of allowance
$
$
$
$
$
$
$
$
1
Excludes mortgage commitments.
2
3
(c)
ALLOWANCE FOR CREDIT LOSSES
The following table provides details on the Bank’s allowance for credit losses as at and for the three months ended January 31, 2026 and January 31, 2025,
including allowance for off-balance sheet instruments in the applicable categories.
Allowance for Credit Losses
(millions of Canadian dollars)
Foreign
Foreign
exchange,
exchange,
Balance at
Provision
Write-offs,
disposals,
Balance
Balance at
Provision
Write-offs,
disposals,
Balance
beginning
for credit
net of
and other
at end of
beginning
for credit
net of
and other
at end of
of period
losses
recoveries
adjustments
period
of period
losses
recoveries
adjustments
period
For the three months ended
January 31, 2026
January 31, 2025
Residential mortgages
$
$
$
(3 )
$
(2 )
$
$
$
(1 )
$
(1 )
$
$
Consumer instalment and other
personal
(343 )
(24 )
(334 )
Credit card
(420 )
(57 )
(436 )
Business and government
(236 )
(98 )
(186 )
Total allowance for loan losses,
including off-balance sheet
instruments
(1,002 )
(181 )
(957 )
Debt securities at amortized cost
Debt securities at FVOCI
Total allowance for credit
losses on debt securities
Total allowance for credit losses
$
$
$
(1,002 )
$
(181 )
$
$
$
$
(957 )
$
$
Comprising:
Allowance for credit losses on
loans at amortized cost
$
$
$
$
Allowance for credit losses on
loans at FVOCI
Allowance for loan losses
Allowance for off-balance sheet
instruments
Allowance for credit losses on
debt securities
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 63
(d)
ALLOWANCE FOR LOAN LOSSES BY STAGE
The following table provides details on the Bank’s allowance for loan losses by stage as at and for the three months ended January 31, 2026 and
January 31, 2025.
Allowance for Loan Losses by Stage
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential Mortgages
Balance at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(23 )
(1 )
(34 )
(1 )
Transfer to Stage 2
(8 )
(7 )
(6 )
(5 )
Transfer to Stage 3
(10 )
(11 )
Net remeasurement due to transfers into stage
2
(6 )
(1 )
(7 )
(3 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
(1 )
(1 )
(2 )
(1 )
(1 )
(2 )
Derecognition of financial assets (excluding
disposals and write-offs)
5
(1 )
(5 )
(9 )
(15 )
(4 )
(4 )
(6 )
(14 )
Changes to risk, parameters, and models
6
(12 )
(28 )
Disposals
Write-offs
(4 )
(4 )
(1 )
(1 )
Recoveries
Foreign exchange and other adjustments
(1 )
(1 )
(2 )
Balance at end of period
$
$
$
$
$
$
$
$
Consumer Instalment and Other Personal
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(201 )
(1 )
(184 )
(1 )
Transfer to Stage 2
(60 )
(20 )
(64 )
(23 )
Transfer to Stage 3
(3 )
(78 )
(3 )
(73 )
Net remeasurement due to transfers into stage
2
(84 )
(11 )
(82 )
(4 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
(23 )
(26 )
(5 )
(54 )
(22 )
(25 )
(4 )
(51 )
Derecognition of financial assets (excluding
disposals and write-offs)
5
(22 )
(29 )
(13 )
(64 )
(21 )
(30 )
(10 )
(61 )
Changes to risk, parameters, and models
6
(96 )
(102 )
Disposals
Write-offs
(421 )
(421 )
(412 )
(412 )
Recoveries
Foreign exchange and other adjustments
(9 )
(12 )
(3 )
(24 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
7
Balance at end of period
$
$
$
$
$
$
$
$
Credit Card
8
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(271 )
(10 )
(474 )
(11 )
Transfer to Stage 2
(91 )
(25 )
(86 )
(21 )
Transfer to Stage 3
(9 )
(273 )
(5 )
(242 )
Net remeasurement due to transfers into stage
2
(109 )
(222 )
(103 )
New originations or purchases
3
n/a
n/a
n/a
n/a
Net repayments
4
Derecognition of financial assets (excluding
disposals and write-offs)
5
(11 )
(29 )
(117 )
(157 )
(27 )
(22 )
(75 )
(124 )
Changes to risk, parameters, and models
6
(98 )
(247 )
Disposals
Write-offs
(529 )
(529 )
(529 )
(529 )
Recoveries
Foreign exchange and other adjustments
(20 )
(24 )
(13 )
(57 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
7
Balance at end of period
$
$
$
$
$
$
$
$
1
Transfers represent stage transfer movements prior to ECL remeasurement.
2
described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2025 Annual Consolidated Financial Statements, holding all other factors impacting the
change in ECLs constant.
3
4
5
6
subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information ” and “Expert Credit Judgment” sections of Note 2 and Note 3 of the
Bank’s 2025 Annual Consolidated Financial Statements for further details.
7
8
Consolidated Financial Statements for further details.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 64
Allowance for Loan Losses by Stage
(Continued)
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Business and Government
Balance, including off-balance sheet instruments,
at beginning of period
$
$
$
$
$
$
$
$
Provision for credit losses
Transfer to Stage 1
1
(93 )
(88 )
Transfer to Stage 2
(138 )
(4 )
(153 )
(5 )
Transfer to Stage 3
(2 )
(151 )
(3 )
(152 )
Net remeasurement due to transfers into stage
1
(31 )
(1 )
(28 )
New originations or purchases
1
n/a
n/a
n/a
n/a
Net repayments
1
(31 )
(102 )
(126 )
(19 )
(10 )
(12 )
Derecognition of financial assets (excluding
disposals and write-offs)
1
(267 )
(255 )
(102 )
(624 )
(169 )
(196 )
(76 )
(441 )
Changes to risk, parameters, and models
1
(92 )
Disposals
(22 )
(22 )
(9 )
(9 )
Write-offs
(256 )
(256 )
(202 )
(202 )
Recoveries
Foreign exchange and other adjustments
(10 )
(39 )
(27 )
(76 )
(2 )
Balance, including off-balance sheet instruments,
at end of period
Less: Allowance for off-balance sheet instruments
2
Balance at end of period
Total Allowance, including off-balance sheet
instruments, at end of period
Less: Total Allowance for off-balance sheet
instruments
2
Total Allowance for Loan Losses at end of period
$
$
$
$
$
$
$
$
1
For explanations regarding this line item, refer to the “Allowance for Loan Losses by Stage” table on the previous page in this Note.
2
The allowance for credit losses on all remaining financial assets is not significant.
(e)
Relevant macroeconomic factors are incorporated in risk parameters as appropriate. Additional risk factors that are industry or segment specific are also
incorporated, where relevant. The key macroeconomic variables used in determining ECLs include regional unemployment rates for all retail exposures and
regional housing price indices for residential mortgages and home equity lines of credit. For business and government loans, the key macroeconomic variables
include gross domestic product (GDP), unemployment rates, interest rates, and credit spreads. Refer to Note 3 of the Bank’s 2025 Annual Consolidated Financial
Statements for a discussion of how forward-looking information is generated and considered in determining whether there has been a significant increase in credit
risk and in measuring ECLs.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 65
Macroeconomic Variables
Select macroeconomic variables are projected over the forecast period.
The following table sets out average values of the macroeconomic variables over the four
calendar quarters starting with the current quarter, and the remaining 4-year forecast period for the base forecast and upside and downside scenarios used in
determining the Bank’s ECLs as at January 31, 2026. As the forecast period increases, information about the future becomes less readily available and projections
are anchored on assumptions around structural relationships between economic parameters that are inherently much less certain. While trade tensions have
eased in recent months, uncertainty related to the economic outlook remains elevated, and our baseline forecast continues to reflect tempered growth and higher
unemployment as a result of tariff actions. Any further escalation in trade tensions would pose a downside risk to the economic outlook. However, the Bank’s
Canadian and U.S. downside scenarios reflect a recession and help capture these risks accordingly through its allowance process.
Macroeconomic Variables
As at
January 31, 2026
Base Forecast
Upside Scenario
Downside Scenario
Average
Remaining
Average
Remaining
Average
Remaining
Q1 2026-
4-year
Q1 2026-
4-year
Q1 2026-
4-year
Q4 2026
1
period
1
Q4 2026
1
period
1
Q4 2026
1
period
1
Unemployment rate
Canada
%
%
%
%
%
%
United States
Real GDP
Canada
(0.8 )
United States
(0.3 )
Home prices
Canada (average existing price)
2
(4.8 )
United States (CoreLogic HPI)
3
(6.4 )
Central bank policy interest rate
Canada
United States
U.S. 10-year treasury yield
U.S. 10-year BBB spread (%-pts)
Exchange rate (U.S. dollar/Canadian dollar)
$
$
$
$
$
$
1
The numbers represent average values for the quoted periods and average of year-on-year growth for real GDP and home prices.
2
The average home price is the average transacted sale price of homes sold via the Multiple Listing Service; data is collected by the Canadian Real Estate Association.
3
The CoreLogic home price index (HPI) is a repeat-sales index which tracks increases and decreases in the same home’s sales price over time.
(f)
ECLs are sensitive to the inputs used in internally developed models, the macroeconomic variables in the forward-looking forecasts and respective probability
weightings in determining the probability-weighted ECLs, and other factors considered when applying expert credit judgment. Changes in these inputs,
assumptions, models, and judgments would affect the assessment of significant increase in credit risk and the measurement of ECLs.
The following table presents the base ECL scenario compared to the probability-weighted ECLs, with the latter derived from three ECL scenarios for performing
loans and off-balance sheet instruments. The difference reflects the impact of deriving multiple scenarios around the base ECLs and resultant change in ECLs due
to non-linearity and sensitivity to using macroeconomic forecasts.
Change from Base to Probability-Weighted ECLs
(millions of Canadian dollars, except as noted)
As at
January 31, 2026
October 31, 2025
Probability-weighted ECLs
$
$
Base ECLs
Difference – in amount
$
$
Difference – in percentage
%
%
ECLs for performing loans and off-balance sheet instruments consist of an aggregate amount of Stage 1 and Stage 2 probability-weighted ECLs which are twelve-
month ECLs and lifetime ECLs, respectively. Transfers from Stage 1 to Stage 2 ECLs result from a significant increase in credit risk since initial recognition of the
loan.
The following table shows the estimated impact of staging on ECLs by presenting all performing loans and off-balance sheet instruments calculated using
twelve-month ECLs compared to the current aggregate probability-weighted ECLs, holding all risk profiles constant.
Incremental Lifetime ECLs Impact
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
Probability-weighted ECLs
$
$
All performing loans and off-balance sheet instruments using 12-month ECLs
Incremental lifetime ECLs impact
$
$
(g)
Foreclosed assets are repossessed non-financial assets where the Bank gains title, ownership, or possession of individual properties, such as real estate
properties, which are managed for sale in an orderly manner with the proceeds used to reduce or repay any outstanding debt. The Bank does not generally occupy
foreclosed properties for its business use. The Bank predominantly relies on third-party appraisals to determine the carrying value of foreclosed assets. Foreclosed
assets held for sale were $
Balance Sheet.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 66
(h)
A loan is classified as past due when a borrower has failed to make a payment by the contractual due date.
The following table summarizes loans that are past
due but not impaired. Loans less than 31 days contractually past due are excluded as they do not generally reflect a borrower’s ability to meet their payment
obligations.
Loans Past Due but not Impaired
1
(millions of Canadian dollars)
As at
January 31, 2026
October 31, 2025
31-60
61-89
31-60
61-89
days
days
Total
days
days
Total
Residential mortgages
$
$
$
$
$
$
Consumer instalment and other personal
Credit card
Business and government
Total
$
$
$
$
$
$
1
Includes loans that are measured at FVOCI.
NOTE 7: INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
INVESTMENT IN THE CHARLES SCHWAB CORPORATION
On February 12, 2025, the Bank sold its entire remaining equity investment in The Charles Schwab Corporation (“Schwab”) through a registered offering and
share repurchase by Schwab. Immediately prior to the sale, TD held
% economic ownership.
The sale of the shares resulted in proceeds of approximately $
$
items, and direct transaction costs. For segment reporting, the Bank recognized an after-tax gain of $
underwriting fees in its Wholesale segment as a result of TD Securities acting as a lead bookrunner on the transaction.
The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale. Prior to the sale, the
Bank accounted for its investment in Schwab using the equity method. The Bank’s share of Schwab’s earnings available to common shareholders was reported
with a one-month lag. The Bank’s share of net income from its prior investment in Schwab of $
reflects net income after adjustments for amortization of certain intangibles net of tax.
The Stockholder Agreement was terminated by the Bank’s sale of its equity investment in Schwab. The Bank continues to have a business relationship with
Schwab through the insured deposit account agreement (“Schwab IDA Agreement”).
INSURED DEPOSIT ACCOUNT AGREEMENT
On May 4, 2023, the Bank and Schwab entered into an amended Schwab IDA Agreement, with an initial expiration of July 1, 2034. Pursuant to the Schwab IDA
Agreement, the Bank makes sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate
obligation amounts. Remaining deposits are designated as floating-rate obligations. The IDA deposit floor is set at US$
Refer to Note 26 of the Bank’s 2025 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
NOTE 8: OTHER ASSETS
Other Assets
(millions of Canadian dollars)
As at
January 31
October 31
2026
2025
Accounts receivable and other items
$
$
Accrued interest
Current income tax receivable
Defined benefit asset
Investments in other associates and joint ventures
Prepaid expenses
Reinsurance contract assets
Total
$
$
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 67
NOTE 9: DEPOSITS
Demand deposits are those for which the Bank does not have the right to require notice prior to withdrawal, which primarily include business and government
chequing accounts. Notice deposits are those for which the Bank can legally require notice prior to withdrawal, which include both savings and chequing
accounts. Term deposits are payable on a given date of maturity and are purchased by customers to earn interest over a fixed period, with terms ranging from
one day to ten years and generally include fixed term deposits, guaranteed investment certificates, senior debt, and similar instruments. The aggregate amount
of term deposits in denominations of $100,000 or more as at January 31, 2026, was $
Deposits
(millions of Canadian dollars)
As at
January 31
October 31
By Type
By Country
2026
2025
Demand
Notice
Term
1
Canada
United States
International
Total
Total
Personal
$
$
$
$
$
$
$
$
Banks
Business and government
2
Trading
Designated at fair value through
profit or loss
3
Total
$
$
$
$
$
$
$
$
Non-interest-bearing deposits
included above
4
Canada
$
$
United States
International
Interest-bearing deposits
included above
4
Canada
United States
5
International
Total
2,6
$
$
1
Includes $
Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities into common shares in the event that the Bank becomes non-viable.
2
Includes $
3
other liabilities designated at FVTPL.
4
5
6
currencies.
NOTE 10: OTHER LIABILITIES
Other Liabilities
(millions of Canadian dollars)
As at
January 31
October 31
2026
2025
Accounts payable, accrued expenses, and other items
1
$
$
Accrued interest
Accrued salaries and employee benefits
Cheques and other items in transit
Current income tax payable
Deferred tax liabilities
Defined benefit liability
Lease liabilities
Liabilities related to structured entities
Provisions
Total
$
$
1
Includes dividends and distributions payable of $
nil
).
NOTE 11: SUBORDINATED NOTES AND DEBENTURES
Redemptions
On January 20, 2026, the Bank announced that subsequent to the quarter-end, it intends to exercise its right to redeem on March 4, 2026 all of its outstanding
$
% non-viability contingent capital medium-term notes due March 4, 2031 constituting subordinated indebtedness of the Bank, at a redemption
price of
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 68
NOTE 12: EQUITY
The following table summarizes the changes to the shares and other equity instruments issued and outstanding, and treasury instruments held as at and for the
three months ended January 31, 2026 and January 31, 2025.
Shares and Other Equity Instruments Issued and Outstanding and Treasury Instruments Held
(thousands of shares or other equity instruments
and millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Number
Number
of shares
Amount
of shares
Amount
Common Shares
Balance as at beginning of period
$
$
Proceeds from shares issued on exercise
of stock options
Shares issued as a result of dividend
reinvestment plan
Purchase of shares for cancellation and other
(19,426 )
(284 )
Balance as at end of period – common shares
$
$
Preferred Shares and Other Equity Instruments
Preferred Shares – Class A
Balance as at beginning of period
$
$
Redemption of shares
(20,000 )
(500 )
Balance as at end of period
$
$
Other Equity Instruments
1
Balance as at beginning of period
$
$
Issue of limited recourse capital notes
Balance as at end of period
Balance as at end of period – preferred shares
and other equity instruments
$
$
Treasury – common shares
2
Balance as at beginning of period
$
$
(17 )
Purchase of shares
(3,314 )
(3,504 )
Sale of shares
(26,987 )
(44,630 )
Balance as at end of period – treasury
– common shares
$
(5 )
$
(38 )
Treasury – preferred shares and
other equity instruments
2
Balance as at beginning of period
$
(4 )
$
(18 )
Purchase of shares and other equity instruments
(162 )
(1,120 )
Sale of shares and other equity instruments
(245 )
(2,067 )
Balance as at end of period – treasury
– preferred shares and other equity instruments
$
(11 )
$
(51 )
1
For Other Equity Instruments, the number of shares represents the number of notes issued.
2
reduction in equity.
DIVIDENDS
On February 25, 2026, the Board approved a dividend in an amount of one dollar and eight cents ($
) per fully paid common share in the capital stock of the
Bank for the quarter ending April 30, 2026, payable on and after April 30, 2026, to shareholders of record at the close of business on April 9, 2026.
DIVIDEND REINVESTMENT PLAN
The Bank offers a Dividend Reinvestment Plan (DRIP) for its common shareholders. Participation in the plan is optional and under the terms of the plan, cash
dividends on common shares are used to purchase additional common shares. At the option of the Bank, the common shares may be issued from treasury at an
average market price based on the last five trading days before the date of the dividend payment, with a discount of between
% to
% at the Bank’s discretion or
purchased from the open market at market prices.
During the three months ended January 31, 2026, the Bank satisfied the DRIP requirements through open market common share purchases (three months
ended January 31, 2025 – the Bank satisfied the DRIP requirements through common shares issued from treasury with
NORMAL COURSE ISSUER BID
On February 24, 2025, the Bank announced that the Toronto Stock Exchange (TSX) and OSFI had approved the Bank’s normal course issuer bid (2025 NCIB) to
repurchase for cancellation up to $
terminated the 2025 NCIB in January 2026. From the commencement of the 2025 NCIB on March 3, 2025, to its completion and termination on January 15, 2026,
the Bank repurchased
On January 16, 2026, the Bank announced that the TSX and OSFI have approved the Bank’s new normal course issuer bid (2026 NCIB) to repurchase for
cancellation up to $
on (A) the earliest to occur of: (i) January 15, 2027; (ii) the date on which the aggregate purchase cost of common shares purchased equals $
date on which the maximum number of common shares purchasable is reached; or (B) such earlier date as the Bank may determine. From the commencement of
the 2026 NCIB on January 20, 2026, to January 31, 2026, the Bank repurchased
for a total amount of $
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 69
NOTE 13: SHARE-BASED COMPENSATION
For the three months ended January 31, 2026, the Bank recognized compensation expense for stock option awards of $
January 31, 2025 – $
were granted by the Bank at a weighted-average fair value of $
The following table summarizes the assumptions used for estimating the fair value of options for the three months ended January 31, 2026 and January 31, 2025.
Assumptions Used for Estimating the Fair Value of Options
(in Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2026
2025
Risk-free interest rate
%
%
Option contractual life
Expected volatility
%
%
Expected dividend yield
%
%
Exercise price/share price
$
$
The risk-free interest rate is based on Government of Canada benchmark bond yields as at the grant date. Expected volatility is calculated based on the historical
average daily volatility and expected dividend yield is based on dividend payouts in the last fiscal year. These assumptions are measured over a period
corresponding to the option contractual life.
NOTE 14: EMPLOYEE BENEFITS
The following table summarizes expenses for the Bank’s principal pension and non-pension post-retirement defined benefit plans and the Bank’s other material
defined benefit pension plans, for the three months ended January 31, 2026 and January 31, 2025. Other employee defined benefit plans operated by the Bank
and certain of its subsidiaries are not considered material for disclosure purposes.
Defined Benefit Plan Expenses
(millions of Canadian dollars)
Principal post-retirement
Principal pension plans
benefit plan
Other pension plans
1
For the three months ended
January 31
January 31
January 31
January 31
January 31
January 31
2026
2025
2026
2025
2026
2025
Service cost – benefits earned
$
$
$
$
$
$
Net interest cost (income) on net defined benefit liability (asset)
(12 )
(12 )
Defined benefit administrative expenses
Total
$
$
$
$
$
$
1
Includes Canada Trust defined benefit pension plan, TD Banknorth defined benefit pension plan, TD Auto Finance defined benefit pension plan, TD Insurance defined benefit pension
plan, and supplemental executive defined benefit pension plans.
The following table summarizes expenses for the Bank’s defined contribution plans for the three months ended January 31, 2026 and January 31, 2025.
Defined Contribution Plan Expenses
(millions of Canadian dollars)
For the three months ended
January 31
January 31
2026
2025
Defined contribution pension plans
1
$
$
Government pension plans
2
Total
$
$
1
Includes defined contribution portion of the TD Pension Plan (Canada) and TD Bank, N.A. defined contribution 401(k) plan.
2
Federal Insurance Contributions Act
.
The following table summarizes the remeasurements recognized in OCI for the Bank’s principal pension and post-retirement defined benefit plans and certain of
the Bank’s other material defined benefit pension plans, for the three months ended January 31, 2026 and January 31, 2025.
Amounts Recognized in Other Comprehensive Income for Remeasurement of Defined Benefit Plans
1,2,3
(millions of Canadian dollars)
Principal post-retirement
Principal pension plans
benefit plan
Other pension plans
For the three months ended
January 31
January 31
January 31
January 31
January 31
January 31
2026
2025
2026
2025
2026
2025
Remeasurement gain/(loss) – financial
$
$
(139 )
$
$
(7 )
$
(1 )
$
(10 )
Remeasurement gain/(loss) – return on plan assets less
interest income
(311 )
Change in asset limitation and minimum funding requirement
(3 )
Total
$
(76 )
$
$
$
(7 )
$
(1 )
$
(10 )
1
plan, and other employee defined benefit plans operated by the Bank and certain of its subsidiaries not considered material for disclosure purposes as these plans are not remeasured on
a quarterly basis.
2
3
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 70
NOTE 15: INCOME TAXES
Other Tax Matters
The Canada Revenue Agency (CRA), Revenu Québec Agency (RQA) and Alberta Tax and Revenue Administration (ATRA) are denying certain dividend and
interest deductions claimed by the Bank. As at January 31, 2026, the CRA has reassessed the Bank for $
reassessed the Bank for $
Bank has been reassessed for $
that its tax filing positions were appropriate and filed a Notice of Appeal with the Tax Court of Canada on March 21, 2023.
NOTE 16: EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding
for the period.
Diluted earnings per share is calculated using the same method as basic earnings per share except that certain adjustments are made to net income available
to common shareholders and the weighted-average number of shares outstanding for the effects of all dilutive potential common shares that are assumed to be
issued by the Bank.
The following table presents the Bank’s basic and diluted earnings per share for the three months ended January 31, 2026 and January 31, 2025.
Basic and Diluted Earnings Per Share
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
January 31
2026
2025
Basic earnings per share
Net income available to common shareholders
$
$
Weighted-average number of common shares outstanding (millions)
Basic earnings per share
(Canadian dollars)
$
$
Diluted earnings per share
Net income available to common shareholders including impact of dilutive securities
$
$
Weighted-average number of common shares outstanding (millions)
Effect of dilutive securities
Stock options potentially exercisable (millions)
1
Weighted-average number of common shares outstanding – diluted (millions)
Diluted earnings per share
(Canadian dollars)
1
$
$
1
For the three months ended January 31, 2026, the computation of diluted earnings per share excluded average options outstanding of
–
– $
), as the option price was greater than the average market price of the
Bank’s common shares.
NOTE 17: PROVISIONS AND CONTINGENT LIABILITIES
Other than as described below, there have been no new significant events or transactions except as previously identified in Note 25 of the Bank’s 2025 Annual
Consolidated Financial Statements.
(a)
The Bank continued to undertake certain measures in the first quarter of 2026 to reduce its cost base and achieve greater efficiency. In connection with this
program, the Bank incurred $
relate to: (i) employee severance and other personnel-related costs recorded as provisions, (ii) real estate optimization mainly recorded as a reduction to buildings
and land, and (iii) asset impairment and other rationalization, including certain business wind-downs.
(b)
In the ordinary course of business, the Bank and its subsidiaries are involved in various legal and regulatory actions, including but not limited to civil claims and
lawsuits, regulatory examinations, investigations, audits, and requests for information by governmental, regulatory and self-regulatory agencies and law
enforcement authorities in various jurisdictions, in respect of our businesses and compliance programs. The Bank establishes provisions when it becomes
probable that the Bank will incur a loss and the amount can be reliably estimated. The Bank also estimates the aggregate range of reasonably possible losses
(RPL) in its legal and regulatory actions (that is, those which are neither probable nor remote), in excess of provisions. However, the Bank does not disclose the
specific possible loss associated with each underlying matter given the substantial uncertainty associated with each possible loss as described below and the
negative consequences to the Bank’s resolution of the matters that comprise the RPL should individual possible losses be disclosed. As at January 31, 2026, the
Bank’s RPL is from
the Bank’s best estimates based upon currently available information for actions for which estimates can be made, but there are a number of factors that could
cause the Bank’s actual losses to be significantly different from its provisions or RPL. For example, the Bank’s estimates involve significant judgment due to the
varying stages of the proceedings, the existence of multiple defendants in many proceedings whose share of liability has yet to be determined, the numerous yet-
unresolved issues in many of the proceedings, some of which are beyond the Bank’s control and/or involve novel legal theories and interpretations, the attendant
uncertainty of the various potential outcomes of such proceedings, and the fact that the underlying matters will change from time to time. In addition, some actions
seek very large or indeterminate damages. Refer to Note 25 of the Bank’s 2025 Annual Consolidated Financial Statements for details on the Bank’s significant
legal and regulatory matters. Based on the Bank’s current knowledge, and subject to the factors listed above as well as other uncertainties inherent in litigation and
regulatory matters, other than as described below: (i) there have been no notable developments to the matters previously identified in Note 25 of the Bank’s 2025
Annual Consolidated Financial Statements; and (b) since October 31, 2025, no other legal or regulatory matter has arisen or progressed to the point that it would
reasonably be expected to result in a material financial impact to the Bank.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 71
As previously disclosed, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it
reached a resolution (the “Global Resolution”) of previously disclosed investigations related to its U.S. Bank Secrecy Act (BSA) and Anti-Money Laundering (AML)
compliance programs (collectively, the “U.S. BSA/AML program”). The Bank and certain of its U.S. subsidiaries consented to orders with the Office of the
Comptroller of the Currency (OCC), the Federal Reserve Board, and the Financial Crimes Enforcement Network and entered into plea agreements with the
Department of Justice (DOJ), Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney’s Office for the District of New
Jersey. Details of the Global Resolution include: (i) a total payment of US$
(ii) TD Bank, N.A. (TDBNA) pleading guilty to one count of conspiring to fail to maintain an adequate AML program, failing to file accurate currency transaction
reports (CTRs) and launder money and TD Bank US Holding Company (TDBUSH) pleading guilty to two counts of causing TDBNA to fail to maintain an adequate
AML program and to fail to file accurate CTRs; (iii) requirements to remediate the Bank’s U.S. BSA/AML program; (iv) a requirement to prioritize the funding and
staffing of the remediation, which includes Board certifications for dividend distributions from certain of the Bank’s U.S. subsidiaries to the Bank; (v) formal
oversight of the U.S. BSA/AML remediation through an independent compliance monitorship; (vi) a prohibition against the average combined total assets of TD’s
two U.S. banking subsidiaries (TDBNA and TD Bank USA, N.A.) (collectively, the “U.S. Bank”) exceeding US$
of the U.S. Bank as at September 30, 2024) (the “Asset Limitation”), and if the U.S. Bank does not achieve compliance with all actionable articles in the OCC
consent orders (and for each successive year that the U.S. Bank remains non-compliant), the OCC may require the U.S. Bank to further reduce total consolidated
assets by up to
%; (vii) the U.S. Bank being subject to OCC supervisory approval processes for any additions of new bank products, services, markets, and
stores prior to the OCC’s acceptance of the U.S. Bank’s improved AML policies and procedures, to ensure the AML risk of new initiatives is appropriately
considered and mitigated; (viii) requirements for the Bank and TD Group U.S. Holdings, LLC (TDGUS) to retain a third party to assess the effectiveness of the
corporate governance and U.S. management structure and composition to adequately oversee U.S. operations; (ix) requirements to comply with the terms of the
plea agreements with the DOJ during a five-year term of probation (which could be extended as a result of the Bank failing to complete the compliance
undertakings, failing to cooperate or to report alleged misconduct as required, or committing additional crimes); (x) an ongoing obligation to cooperate with DOJ
investigations; and (xi) an ongoing obligation to report evidence or allegations of violations by the Bank, its affiliates, or their employees that may be a violation of
U.S. federal law. The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting its requirements to remediate the
Bank’s U.S. BSA/AML compliance programs. During the first fiscal quarter of 2025, the Bank fully paid the remainder of the monetary penalty owed pursuant to the
consent orders and plea agreements that were entered into as part of the Global Resolution. The payment was covered by provisions previously taken by the Bank
for this matter.
As previously disclosed, the Bank and some former and current directors, officers and employees have been named as defendants in proposed class action
lawsuits in the United States and Canada purporting to be brought on behalf of the Bank’s shareholders alleging, among other things, that a decline in the price of
the Bank’s shares was the result of misleading disclosures with respect to the Bank’s AML compliance programs and/or the potential outcomes of the government
agencies’ or regulators’ investigations. The two proposed class actions filed in the United States have been consolidated under the caption
Tiessen v. The
Toronto-Dominion Bank, et al.,
which names TD Bank, N.A., TDBUSH, and certain former and current officers as defendants. On May 30, 2025, the defendants filed a motion to dismiss in the
Tiessen
Parkin v. The Toronto-Dominion Bank, et al.,
identified as the lead action with the other two Ontario actions being stayed. There remains one further proposed class action in Quebec which has been stayed.
The
Parkin
Securities Act
dates to be scheduled. A putative shareholder derivative action, captioned
Rubin v. Masrani, et al.,
States in the Supreme Court of the State of New York, New York County, against certain former and current TD directors, officers and employees, and certain of
TD’s U.S. affiliates and subsidiaries. The complaint asserts alleged breaches of duties and other claims against the individual defendants in connection with the
Bank’s U.S. BSA/AML compliance programs. On October 31, 2025, TD filed a motion to dismiss the
Rubin
filed an application in the Ontario Superior Court of Justice (
The Trustees of International Brotherhood of Electrical Workers, et al., v. The Toronto-Dominion Bank,
et al.
) seeking leave to bring a shareholder derivative action in the Delaware Court of Chancery on behalf of TD and TDBUSH against certain current and former
directors and officers. The motion to seek leave is scheduled for April 21, 2026. All of the proceedings are still in early stages. Losses or damages cannot be
estimated at this time.
As previously disclosed, the Bank has been named as defendant in a purported class action lawsuit in the United States to be brought on behalf of First Horizon
shareholders alleging that a decline in the price of First Horizon shares was the result of alleged misleading disclosures the Bank made with respect to its U.S.
BSA/AML compliance programs and its effect on the Bank’s contemplated merger with First Horizon. The lawsuit also names some of the Bank’s former and
current officers and a former employee as defendants. On November 26, 2025, the court dismissed plaintiffs’ complaint, but gave plaintiffs a final opportunity to
amend their complaint again to attempt to address its deficiencies. On January 22, 2026, the plaintiffs did not amend their complaint and instead filed a notice of
appeal. Losses or damages cannot be estimated at this time.
As previously disclosed, the Bank is a defendant in Canada and/or the United States in a number of matters brought by customers, including class actions,
alleging claims in connection with various fees, practices and credit decisions. The cases are in various stages of maturity and include, among others: a Quebec
action against members of the financial services industry (including the Bank) regarding the existence and amount of the insufficient or non-sufficient funds fee, a
Quebec action against certain brokers (including TD Direct Investing) regarding disclosure of foreign conversion fees, and a Quebec action against members of
the automobile insurance industry (including Primmum Insurance Company) regarding underwriting practices in Quebec.
Refer to Note 15 for disclosures related to tax matters.
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 72
NOTE 18: SEGMENTED INFORMATION
For management reporting purposes, the Bank reports its results from business operations and activities under four key business segments: Canadian Personal
and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the Corporate
segment. Effective the first quarter of 2026, the Bank renamed its U.S. Retail segment to U.S. Banking to better reflect the segment’s financial products and
services.
Canadian Personal and Commercial Banking provides financial products and services to personal, small business and commercial customers, and includes
TD Auto Finance Canada. U.S. Banking is comprised of personal and business banking in the U.S., TD Auto Finance U.S., and the U.S. wealth business. Effective
the first quarter of 2026, non-interest income within U.S. Banking is adjusted for the Bank’s share of losses from community-based tax-advantaged investments
accounted for using the equity method which are reclassified to provision for income taxes. The adjustment between non-interest income and provision for income
taxes reflected in U.S. Banking results is reversed in the Corporate segment. The adjustment for the quarter was $
$
conform with the presentation adopted in the current period. On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Prior to the
sale, the Bank’s investment in Schwab was reported in the U.S. Banking segment, refer to Note 7 for further details. Wealth Management and Insurance includes
the Canadian wealth business which provides investment products and services to institutional and retail investors, and the insurance business which provides
property and casualty insurance, as well as life and health insurance products to customers across Canada. Wholesale Banking provides a wide range of capital
markets, investment banking, and corporate banking products and services, including underwriting and distribution of new debt and equity issues, providing advice
on strategic acquisitions and divestitures, and meeting the daily trading, funding, and investment needs of the Bank’s clients. The Corporate segment includes the
effects of certain asset securitization programs, treasury management, elimination of taxable equivalent adjustments and other management reclassifications,
corporate level tax items, and residual unallocated revenue and expenses.
The following table summarizes the segment results for the three months ended January 31, 2026 and January 31, 2025.
Results by Business Segment
1
(millions of Canadian dollars)
Canadian
Wealth
Personal and
Management
Commercial Banking
U.S. Banking
and Insurance
Wholesale Banking
2
Corporate
2
Total
For the three months ended January 31
2026
2025
2026
2025
2026
2025
2026
2025
2026
2025
2026
2025
Net interest income (loss)
$
$
$
$
$
$
$
(75 )
$
(107 )
$
$
$
$
Non-interest income (loss)
(118 )
(65 )
(49 )
Total revenue
Provision for (recovery of)
credit losses
Insurance service expenses
Non-interest expenses
Income (loss) before income taxes
and share of net income from
investment in Schwab
(750 )
(708 )
Provision for (recovery of)
income taxes
(28 )
(391 )
(317 )
Share of net income from
investment in Schwab
3,4
Net income (loss)
$
$
$
$
$
$
$
$
$
(359 )
$
(359 )
$
$
1
The retailer program partners’ share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners’ net share) recorded in
non-interest expenses, resulting in no impact to Corporate reported net income (loss). Net income (loss) included in the U.S. Banking segment includes only the portion of revenue and
credit losses attributable to the Bank under the agreements.
2
segment.
3
4
Total Assets by Business Segment
(millions of Canadian dollars)
Canadian
Wealth
Personal and
Management
Wholesale
Commercial Banking
U.S. Banking
and Insurance
Banking
Corporate
Total
As at January 31, 2026
Total assets
$
$
$
$
$
$
As at October 31, 2025
Total assets
$
$
$
$
$
$
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 73
NOTE 19: INTEREST INCOME AND EXPENSE
The following tables present interest income and interest expense by basis of accounting measurement.
Interest Income
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Measured at amortized cost
1
$
$
Measured at FVOCI – Debt instruments
1
Measured or designated at FVTPL
Measured at FVOCI – Equity instruments
Total
$
$
1
Interest income is calculated using EIRM.
Interest Expense
(millions of Canadian dollars)
For the three months ended
January 31, 2026
January 31, 2025
Measured at amortized cost
1
$
$
Measured or designated at FVTPL
Total
$
$
1
Interest expense is calculated using EIRM.
NOTE 20: REGULATORY CAPITAL
The Bank manages its capital under guidelines established by OSFI. The regulatory capital guidelines measure capital in relation to credit, market, and operational
risks. The Bank has various capital policies, procedures, and controls which it utilizes to achieve its goals and objectives. The Bank is designated as a domestic
systemically important bank (D-SIB) and a global systemically important bank (G-SIB).
Canadian banks designated as D-SIBs are required to comply with OSFI’s minimum targets for risk-based capital and leverage ratios. The minimum targets
include a D-SIB surcharge and Domestic Stability Buffer (DSB) for Common Equity Tier 1 Capital, Tier 1 Capital, Total Capital and risk-based Total Loss
Absorbing Capacity (TLAC) ratios. The DSB level was increased to
% as of November 1, 2023, and as a result the published regulatory minimum targets are
set at
%,
%,
% and
%, respectively. The OSFI target includes the greater of the D-SIB or G-SIB surcharge, both of which are currently
% for the
Bank. The OSFI target for leverage requires D-SIBs to hold a leverage ratio buffer of
% in addition to the existing minimum requirement. This sets the
published regulatory minimum targets for leverage and TLAC leverage ratios at
% and
%, respectively.
The Bank complied with all minimum risk-based capital and leverage ratio requirements set by OSFI in the three months ended January 31, 2026.
The following table summarizes the Bank’s regulatory capital positions as at January 31, 2026 and October 31, 2025.
Regulatory Capital Position
(millions of Canadian dollars, except as noted)
As at
January 31
October 31
2026
2025
Capital
Common Equity Tier 1 Capital
$
$
Tier 1 Capital
Total Capital
Risk-weighted assets used in the calculation of capital ratios
Capital and leverage ratios
Common Equity Tier 1 Capital ratio
%
%
Tier 1 Capital ratio
Total Capital ratio
Leverage ratio
TLAC Ratio
TLAC Leverage Ratio
TD BANK GROUP • FIRST QUARTER 2026 • REPORT TO SHAREHOLDERS
Page 74
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If you:
And your inquiry relates to:
Are a registered shareholder (your name appears
on your TD share certificate)
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of
shareholder materials or stopping (or resuming)
receiving annual and quarterly reports
Transfer Agent:
TSX Trust Company
301-100 Adelaide Street West
Toronto, ON M5H 4H1
1-800-387-0825 (Canada and U.S. only)
or 416-682-3860
Facsimile: 1-888-249-6189
shareholderinquiries@tmx.com or www.tsxtrust.com
Hold your TD shares through the
Direct Registration System
in the United States
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
eliminating duplicate mailings of shareholder
materials or stopping (or resuming) receiving annual
and quarterly reports
Co-Transfer Agent and Registrar:
Computershare Trust Company, N.A.
P.O. Box 43006
Providence, RI 02940-3006
or
Computershare Trust Company, N.A.
150 Royall Street
Suite 101
Canton, MA 02021
1-866-233-4836
TDD for hearing impaired: 1-800-231-5469
Shareholders outside of U.S.: 201-680-6578
TDD shareholders outside of U.S.: 201-680-6610
Email inquiries: web.queries@computershare.com
For electronic access to your account visit:
www.computershare.com/investor
Beneficially own TD shares that are held in the
name of an intermediary, such as a bank, a trust
company, a securities broker or other nominee
Your TD shares, including questions regarding the
dividend reinvestment plan and mailings of
shareholder materials
Your intermediary
For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by
leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.
General Information
Products and services: Contact TD Canada Trust, 24 hours a day, seven days a week: 1-866-567-8888
French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the hearing impaired (TTY): 1-800-361-1180
Website:
Email:
customer.service@td.com
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on February 26, 2026. The call will be audio webcast live through TD’s website at
9:30 a.m. ET. The call will feature presentations by TD executives on the Bank’s financial results for the first quarter and discussions of related disclosures,
followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at
www.td.com/investor
24789#.
The audio webcast and presentations will be archived at
www.td.com/investor
. Replay of the teleconference will be available until 11:59 p.m. ET on
March 13, 2026, by calling 289-819-1325 or 1-888-660-6264 (toll free). The passcode is 24789#.
Annual Meeting
Thursday, April 16, 2026
Toronto, Ontario
THE TORONTO-DOMINION BANK
EARNINGS COVERAGE ON SUBORDINATED NOTES AND DEBENTURES,
PREFERRED SHARES CLASSIFIED AS EQUITY, AND LIABILITIES FOR
PREFERRED SHARES AND OTHER EQUITY INSTRUMENTS AND CAPITAL TRUST SECURITIES
FOR THE TWELVE MONTHS ENDED JANUARY 31, 2026
TD Bank Group (“TD” or the “Bank”) dividend requirements on all its outstanding preferred shares and other equity instruments in respect of the twelve months
ended January 31, 2026 and adjusted to a before-tax equivalent using an effective tax rate of approximately 17.8% for the twelve months ended January 31, 2026,
amounted to $706 million. The Bank’s interest and dividend requirements on all subordinated notes and debentures, preferred shares and liabilities for preferred
shares and other equity instruments and capital trust securities, after adjustment for new issues and retirement, amounted to $1,221 million for the twelve months
ended January 31, 2026. The Bank’s reported net income, before interest on subordinated debt and liabilities for preferred shares and capital trust securities and
income taxes was $26,064 million for the twelve months ended January 31, 2026, which was 21.4 times the Bank’s aggregate dividend and interest requirement
for this period.
trust securities and income taxes for the twelve months ended January 31, 2026, was $20,247 million, which was 16.6 times the Bank’s aggregate dividend and
interest requirement for this period.
accepted accounting principles (GAAP), and refers to results prepared in accordance with IFRS as “reported” results. The Bank also utilizes non-GAAP financial
measures such as “adjusted” results (i.e. reports results excluding “items of note”) and non-GAAP ratios to assess each of its businesses and measure overall
Bank performance. The Bank believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how
management views the Bank’s performance. Non-GAAP financial measures and ratios used in this presentation are not defined under IFRS, and, therefore, may
not be comparable to similar terms used by other issuers. See “How We Performed” and “Quarterly Results” sections of the Bank’s first quarter 2026 MD&A
(available at www.td.com/investor and www.sedarplus.ca), which are incorporated by reference, for further explanation, reported basis results, a list of the items of
note, and a reconciliation of adjusted to reported results.
RETURN ON ASSETS, AND EQUITY TO ASSETS RATIOS
1,2
For the three months ended
For the year ended
January 31, 2026
October 31, 2025
October 31, 2025
Return on Assets – reported
3
0.74
%
0.58
%
0.95
%
Return on Assets – adjusted
4
0.77
0.70
0.69
Equity to Asset Ratio
5
6.0
6.0
5.9
1
2
(GAAP), and refers to results prepared in accordance with IFRS as the “reported” results. The Bank also utilizes non-GAAP financial measures such as “adjusted” results (i.e. reported
results excluding “items of note”) and non-GAAP ratios to assess each of its businesses and measure overall Bank performance. The Bank believes that non-GAAP financial measures
and non-GAAP ratios provide the reader with a better understanding of how management views the Bank’s performance. Non-GAAP financial measures and ratios used in this
presentation are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. For further explanation regarding reported basis results, list
of the items of note, and a reconciliation of adjusted to reported results, refer to “Significant Events”, “How We Performed”, and “How Our Businesses Performed“ sections of the Bank’s
first quarter 2026 MD&A (available at www.td.com/investor and www.sedar.com), which are incorporated by reference.
3
4
Calculated as adjusted net income available to common shareholders divided by average total assets.
5
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 1
1
2
3
4
TD Bank Group Reports First Quarter 2026 Results
Earnings News Release
Three months ended January 31, 2026
This quarterly Earnings News Release (ENR) should be read in conjunction with the Bank’s unaudited first quarter 2026 Report to Shareholders for the three
months ended January 31, 2026, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), which is available on our website at http://www.td.com/investor/. This ENR is dated February 25, 2026. Unless otherwise indicated, all
amounts are expressed in Canadian dollars, and have been primarily derived from the Bank’s Annual or Interim Consolidated Financial Statements prepared in
accordance with IFRS. Certain comparative amounts have been revised to conform with the presentation adopted in the current period. Additional information
relating to the Bank is available on the Bank’s website at http://www.td.com, as well as on SEDAR+ at http://www.sedarplus.ca and on the U.S. Securities and
Exchange Commission’s (SEC) website at http://www.sec.gov (EDGAR filers section).
Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures.
For additional information about the Bank’s use of non-GAAP financial measures, refer to “Significant Events”, “Non-GAAP and Other Financial Measures” in the
“How We Performed”, or “How Our Businesses Performed” sections of this document.
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter last year:
●
Reported diluted earnings per share were $2.34, compared with $1.55.
●
Adjusted diluted earnings per share were $2.44, compared with $2.02.
●
Reported net income was $4,043 million, compared with $2,793 million.
●
Adjusted net income was $4,216 million, compared with $3,623 million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first quarter reported earnings figures included the following items of note:
●
Amortization of acquired intangibles of $34 million ($26 million after tax or 1 cent per share), compared with $61 million ($52 million after tax or
3 cents per share) in the first quarter last year.
●
Impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $44 million ($32 million after tax or
2 cents per share), compared with $54 million ($41 million after tax or 2 cents per share) in the first quarter last year.
●
Restructuring charges of $200 million ($148 million after tax or 9 cents per share).
●
Federal Deposit Insurance Corporation (FDIC) special assessment of ($44) million (($33) million after tax or (2) cents per share).
TORONTO
, February 26, 2026 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ended January 31, 2026. Reported
earnings were $4.0 billion, up 45% compared with the first quarter last year, and adjusted earnings were $4.2 billion, up 16%.
“TD delivered strong first quarter results, including record adjusted earnings and significant year
‑
over
‑
year adjusted return on equity growth, reflecting momentum
across our businesses as we advance our Investor Day goals. We achieved robust trading and fee income growth in our markets-driven businesses, volume
growth in Canadian Personal and Commercial Banking, and margin expansion,” said Raymond Chun, Group President and CEO, TD Bank Group. “Across TD, our
colleagues are driving deeper relationships, helping us build a simpler and faster bank, with disciplined execution.”
Canadian Personal and Commercial Banking delivered record revenue, earnings, deposit and loan volumes
Canadian Personal and Commercial Banking net income was a record $2,044 million, an increase of 12% compared with the first quarter last year, reflecting
higher pre-tax, pre-provision earnings (PTPP)
,
,
an increase of 7% year-over-year, and lower provisions for credit losses (PCL). Revenue was a record
$5,421 million, an increase of 5% year-over-year, primarily reflecting increased loan and deposit volumes.
Canadian Personal Banking made significant progress in deepening client relationships, achieving its highest quarterly credit card acquisitions in over a decade,
driven by record existing client pre-approvals and new client credit card deepening rates. In addition, the business also delivered simpler and faster client and
colleague experiences with the national expansion of its Branch Virtual Assistant, a GenAI Knowledge Management tool, and the initial scaling of an agentic AI
capability in Real Estate Secured Lending to accelerate speed-to-decision. Canadian Business Banking delivered strong loan and non-term deposit growth this
quarter, supported by continued expansion of its distribution footprint. Small Business Banking also saw continued growth in chequing accounts, driven by
compelling client offers and strong frontline engagement.
U.S. Banking sustained business momentum and executed against critical deliverables
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $897 million (US$642 million) year-over-year. On an adjusted basis, net
income was $1,007 million (US$723 million), an increase of $168 million (US$129 million) year-over-year, reflecting the impact of U.S. balance sheet restructuring
activities and lower PCL, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation and higher employee-
related expenses.
This quarter, U.S. Banking sustained its momentum, supported by growth across core lending portfolios
,
including record Bankcard digital sales and robust year-
over-year growth in client assets within U.S. Wealth. Conversion of the Nordstrom credit card servicing platform has been completed, enhancing scale to support
the U.S. credit card franchise.
Wealth Management and Insurance delivered record earnings and assets reflecting strong contributions from both business lines
1
Reported revenue – Q1 2026: $5,421 million, Q1 2025: $5,149 million. Reported non-interest expenses – Q1 202 6: $2,147 million, Q1 2025: $2,086 million. PTPP – Q1 2026:
$3,274 million, Q1 2025: $3,063 million.
2
document.
3
excludes earnings of $199 million (US$142 million) from the Bank’s investment in The Charles Schwab Corporation in the first quarter last year.
4
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 2
5
6
Wealth Management and Insurance net income was $757 million, an increase of $77 million year-over-year, driven by record assets, strong transaction revenue
and insurance premiums growth.
Wealth Management delivered strong performance in the quarter, with trades per day in TD Direct Investing increasing 10% year-over-year, reflecting the strength
of TD’s comprehensive trading platforms. TD Wealth unified its two discretionary businesses within Private Wealth Management, simplifying the business and
positioning it for scalable growth. This quarter, TD Insurance continued to strengthen its position as Canada’s leading digital, direct insurer
,
, with 80% of clients
digitally engaged. TD Insurance issued another innovative catastrophe bond, the first in the Canadian market to provide protection against aggregate losses from
small and medium-sized catastrophe events.
Wholesale Banking delivered record revenue and earnings
Wholesale Banking reported net income of $561 million for the quarter, an increase of $262 million year-over-year, primarily reflecting higher revenues, partially
offset by higher PCL and non-interest expenses. On an adjusted basis, net income was a record $561 million, an increase of $221 million year-over-year. Revenue
for the quarter was a record $2,470 million, an increase of 24% year-over-year, driven by strong execution across Global Markets, and Corporate and Investment
Banking.
TD Securities advanced its strategy by leveraging its integrated platform to deepen client relationships, driving diversified revenue across Global Markets, and
Corporate and Investment Banking. This quarter, TD Securities scaled prime services with the launch of its U.S. and European synthetic prime offering. In addition,
Wholesale Banking maintained disciplined execution, focusing on moderated expense growth and improved return on equity.
Capital
TD’s Common Equity Tier 1 Capital ratio was 14.5%.
Conclusion
“As our clients navigate an increasingly complex landscape, we are investing in talent, technology and new capabilities to support their financial goals. We are
deploying AI-enabled applications across TD, enhancing how we work, and creating new, intuitive and personalized experiences for our clients. Our colleagues
remain the source of our strength, and I thank them for their dedication to our clients and the Bank,” added Chun.
The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 3.
5
6
Columbia, Manitoba Public Insurance, and Saskatchewan Auto Fund).
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 3
Caution Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and
Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made
pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S.
Private Securities Litigation Reform Act
Forward-looking statements include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis (“2025 MD&A”) in the Bank’s 2025 Annual Report under the heading “Economic
Summary and Outlook”, under the headings “Key Priorities for 2026” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and
Wholesale Banking segments, and under the heading “2025 Accomplishments and Focus for 2026” for the Corporate segment, and in other statements regarding the Bank’s objectives and priorities for 2026 and beyond
and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank’s anticipated financial performance.
Forward-looking statements are typically identified by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “forecast”, “outlook”, “plan”, “goal”, “target”, “possible”, “potential”,
“predict”, “project”, “may”, and “could” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-
looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political,
and regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the effects of which can be difficult to predict – may cause actual results to differ materially from the
expectations expressed in the forward-looking statements.
Risk factors that could cause, individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including
technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, compliance and legal, financial crime, reputational, environmental and
social, and other risks. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates; geopolitical risk (including policy, trade and tax-related risks and the
potential impact of any new or elevated tariffs or any retaliatory tariffs); inflation, interest rates and recession uncertainty; regulatory oversight and compliance risk; risks associated with the Bank’s ability to satisfy the terms
of the global resolution of the investigations into the Bank’s U.S.
Bank Secrecy Act
program on the Bank’s businesses, operations, financial condition, and reputation; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of
acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; technology
and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank’s technologies, systems and networks, those of the Bank’s customers (including their own devices), and third
parties providing services to the Bank; data risk; model risk; fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and
control of information, and other risks arising from the Bank’s use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including without limitation consumer protection laws
and regulations, tax laws, capital guidelines and liquidity regulatory guidance; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and
disruptive technology; environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes in foreign
exchange rates, interest rates, credit spreads and equity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency, the value and market price of the Bank’s common shares and other securities
may be impacted by market conditions and other factors; the interconnectivity of financial institutions including existing and potential international debt crises; increased funding costs and market volatility due to market
illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and
claims resulting from such events.
The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more detailed information, please refer to the “Risk Factors and
Management” section of the 2025 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings
“Significant Events”, “Significant and Subsequent Events” or “Update on U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program Remediation and Enterprise AML Program Improvement Activities“ in the
relevant MD&A, which applicable releases may be found on www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be
considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank’s forward-looking statements.
Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 MD&A under the headings “Economic Summary and Outlook” and “Significant Events”, under
the headings “Key Priorities for 2026” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking segments,
and under the heading “2025 Accomplishments and Focus for 2026” for the Corporate segment, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable).
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s shareholders and analysts in
understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank
does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.
This document was reviewed by the Bank’s Audit Committee and was approved by the Bank’s Board of Directors, on the Audit Committee’s recommendation, prior to its release.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 4
TABLE 1: FINANCIAL HIGHLIGHTS
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Results of operations
Total revenue – reported
$
16,585
$
15,494
$
14,049
Total revenue – adjusted
1
16,629
16,028
15,030
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses (ISE)
1,622
1,602
1,507
Non-interest expenses – reported
8,753
8,808
8,070
Non-interest expenses – adjusted
1
8,563
8,540
7,983
Net income – reported
4,043
3,280
2,793
Net income – adjusted
1
4,216
3,905
3,623
Financial position
(billions of Canadian dollars)
Total loans net of allowance for loan losses
$
958.5
$
953.0
$
965.3
Total assets
2,099.3
2,094.6
2,093.6
Total deposits
1,245.1
1,267.1
1,290.5
Total equity
125.6
127.8
119.0
Total risk-weighted assets
2
635.2
636.4
649.0
Financial ratios
Return on common equity (ROE) – reported
3
13.6
%
10.7
%
10.1
%
Return on common equity – adjusted
1
14.2
12.8
13.2
Return on tangible common equity (ROTCE)
1,3
16.3
12.9
13.4
Return on tangible common equity – adjusted
1
16.9
15.4
17.2
Efficiency ratio – reported
3
52.8
56.8
57.4
Efficiency ratio – adjusted, net of ISE
1,3,4
57.1
59.2
59.0
Provision for (recovery of) credit losses as a % of net
average loans and acceptances
0.43
0.41
0.50
Common share information – reported
(Canadian dollars)
Per share earnings
Basic
$
2.35
$
1.82
$
1.55
Diluted
2.34
1.82
1.55
Dividends per share
1.08
1.05
1.05
Book value per share
3
68.20
68.78
61.61
Closing share price (TSX)
5
127.26
115.16
82.91
Shares outstanding (millions)
Average basic
1,680.3
1,698.2
1,749.9
Average diluted
1,684.7
1,701.5
1,750.7
End of period
1,671.2
1,689.5
1,751.7
Market capitalization (billions of Canadian dollars)
$
212.7
$
194.6
$
145.2
Dividend yield
3
3.5
%
3.9
%
5.4
%
Dividend payout ratio
3
45.9
57.6
67.8
Price-earnings ratio
3
10.3
10.0
17.5
Total shareholder return (1 year)
3
60.0
56.7
6.9
Common share information – adjusted
(Canadian dollars)
1
Per share earnings
Basic
$
2.45
$
2.19
$
2.02
Diluted
2.44
2.18
2.02
Dividend payout ratio
44.0
%
47.9
%
51.9
%
Price-earnings ratio
14.5
13.8
10.6
Capital ratios
2
Common Equity Tier 1 (CET1) Capital ratio
14.5
%
14.7
%
13.1
%
Tier 1 Capital ratio
16.3
16.4
14.7
Total Capital ratio
18.1
18.4
17.0
Leverage ratio
4.5
4.6
4.2
Total Loss Absorbing Capacity (TLAC) ratio
31.1
31.8
29.5
TLAC Leverage ratio
8.6
8.9
8.5
1
accordance with IFRS as the “reported” results. The Bank also utilizes non-GAAP financial measures such as “adjusted” results and non-GAAP ratios to assess each of its businesses
and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for “items of note”. Refer to “Significant Events”, “How We Performed” or “How
Our Businesses Performed” sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures
and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
2
(CAR), Leverage Requirements (LR), and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the “Capital Position” section in the Bank’s first quarter 2026 Management’s
Discussion and Analysis (MD&A) for further details.
3
4
Q1 2026: $15,007 million, Q4 2025: $14,426 million, Q1 2025: $13,523 million.
5
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 5
7
8
SIGNIFICANT EVENTS
Restructuring Charges
The Bank continued to undertake certain measures in the first quarter of 2026 to reduce its cost base and achieve greater efficiency. In connection with this
program, the Bank incurred $200 million pre-tax of restructuring charges for the three months ended January 31, 2026, which primarily related to employee
severance and other personnel-related costs, real estate optimization, and asset impairment and other rationalization, including certain business wind-downs. The
Bank is above its previously disclosed guidance that its restructuring charges in the first quarter of 2026 would be approximately $125 million pre-tax, primarily due
to additional workforce optimization opportunities.
The restructuring program concluded on January 31, 2026, with total program charges of $886 million pre-tax. The Bank expects the program to generate total
pre-tax fully realized annual program savings of approximately $775 million, including savings from an approximate 3% workforce reduction
.
UPDATE ON THE REMEDIATION OF THE U.S. BANK SECRECY ACT/ANTI-MONEY LAUNDERING PROGRAM AND
ENTERPRISE AML PROGRAM
As previously disclosed, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a
resolution (the “Global Resolution”) of previously disclosed investigations related to its U.S. BSA/AML program. The Bank and certain of its U.S. subsidiaries
consented to orders with the Office of the Comptroller of the Currency (“OCC”), the Federal Reserve Board (“FRB”), and the Financial Crimes Enforcement
Network (“FinCEN”) and entered into plea agreements with the Department of Justice (“DOJ”), Criminal Division, Money Laundering and Asset Recovery Section
and the United States Attorney’s Office for the District of New Jersey. The full terms of the consent orders and plea agreements are available on the Bank’s issuer
profile on SEDAR+ at www.sedarplus.com.
The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting the requirements to remediate the Bank’s U.S. BSA/AML
program. In addition, the Bank is also undertaking remediation of the Bank’s enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs (“Enterprise
AML Program”).
For additional information on the risks associated with the remediation of the Bank’s U.S. BSA/AML program and the Bank’s Enterprise AML Program, see the
“Risk Factors That May Affect Future Results – Remediation of the Bank’s U.S. BSA/AML Program and Enterprise AML Program” section of the 2025 MD&A.
Update on the Remediation of the U.S. AML Program
The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. The Bank continues to work on its
management remediation actions (the term “management remediation actions” is not a regulatory definition and is considered by the Bank to consist of the root
cause assessments, data preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing and implementation of
controls, as well as the hiring of resources) with significant work and important milestones remaining in calendar 2026 and calendar 2027 including the Suspicious
Activity Report lookback per the OCC consent order which management expects to complete in calendar 2027. For fiscal 2026, the Bank continues to expect U.S.
BSA/AML remediation and related governance and control investments of approximately US$500 million pre-tax. All management remediation actions will be
subject to demonstrated sustainability and validation by the Bank’s internal audit function (with such activities currently planned for calendar 2026 and calendar
2027), as well as the review by the appointed monitor, and, ultimately, the review and approval of the Bank’s U.S. banking regulators and the DOJ. Following such
independent reviews, testing, and validation, there could be additional management remediation actions that would take place after calendar 2027 in which case
the overall remediation timeline may be extended. In addition, as the Bank undertakes the lookback reviews, the Bank may be required to further expand the
scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The following graph illustrates the Bank’s expected
remediation plan and progress on a calendar year basis, based on its work to date:
The Bank’s remediation timeline is based on the Bank’s current plans, as well as assumptions related to the duration of planning activities, including the
completion of external benchmarking and lookback reviews. The Bank’s ability to meet its planned remediation milestones assumes that the Bank will be able to
successfully execute against its U.S. BSA/AML remediation program plan, which is subject to inherent risks and uncertainties including the Bank’s ability to attract
and retain key employees, the ability of third parties to deliver on their contractual obligations, the successful development and implementation of required
technology solutions, and data availability to complete the required lookback reviews. Furthermore, the execution of the U.S. BSA/AML remediation plan, including
these planned milestones, will not be entirely within the Bank’s control because of various factors such as (i) the requirement to obtain regulatory approval or non-
objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators and/or the monitor. As of the
date hereof, the Bank believes that it and its applicable U.S. subsidiaries have taken such actions as are required of them to date under the terms of the consent
orders and plea agreements and is not aware of them being in breach of the same. For information about the Bank’s AML governance framework, see the
“Managing Risk” section in the Bank’s first quarter 2026 MD&A.
While substantial work remains, the Bank is making progress on remediating and strengthening its U.S. BSA/AML program as previously disclosed including
continued improvements through:
7
natural attrition, talent re-deployment opportunities, years-of-service, execution timing of actions, and foreign exchange translation impacts. Refer to the “Risk Factors That May Affect
Future Results” section in the Bank’s first quarter 2026 MD&A for additional information about risks and uncertainties that may impact the Bank’s estimates.
8
BSA/AML remediation plan which could change as a result of additional findings that are identified as work progresses as well as the Bank’s ability to successfully execute against the
U.S. BSA/AML remediation program in accordance with the U.S. Banking segment’s fiscal 2026 and medium-term plan
.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 6
1)
2)
Bank’s financial crimes risks; and
3)
collection and maintenance of customer information in a single profile resulting in better insights about the Bank’s customers.
Going forward, the Bank’s focus will be on continuing to remediate and strengthen its U.S. BSA/AML program, including:
1)
2)
3)
4)
single source of truth in support of advanced detection capabilities;
5)
6)
Strengthening of the Bank’s Enterprise AML Program
The Bank continues to undertake remediation of the Enterprise AML Program, including a range of management remediation and enhancement actions (the term
“management remediation and enhancement actions” is not a regulatory definition and is considered by the Bank to consist of root cause assessments, data
preparation, design, documentation, frameworks, policies, standards, training, processes, systems, testing, and execution of controls, as well as the hiring of
resources). While the Bank has made progress on this remediation work, it is a multi-year endeavour and the remediation work remains ongoing. The timing of
completion of the remediation work will not be entirely within the Bank’s control, and is subject to regulatory feedback, internal review, challenge and validation. As
previously disclosed, following the end of the first quarter of fiscal 2025, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
commenced a review of certain remediation steps that the Bank has taken to date to address the FINTRAC violations. This review is ongoing, and subject to the
outcome, may result in additional regulatory actions.
The remediation and enhancement of the Enterprise AML Program is exposed to similar risks as noted in respect of the remediation of the Bank’s U.S. BSA/AML
Program (see also “Remediation of the U.S. BSA/AML Program” above). In particular, as the Bank continues its remediation and improvement activities of the
Enterprise AML Program, it expects an increase in identification of reportable transactions and/or events, which will add to the operational backlog in the Bank’s
FCRM investigations processing that the Bank currently faces, but is working towards remediating, across the Bank. In addition, on an ongoing basis, the Bank will
continue to review and assess whether issues identified in one jurisdiction have an impact in other jurisdictions. Furthermore, the Bank’s regulators or law
enforcement agencies may identify other issues with the Bank’s Enterprise AML Program, which may result in additional regulatory actions. These issues identified
through the Bank’s own review or by the Bank’s regulators or law enforcement agencies may broaden the scope of the remediation and improvements required for
the Enterprise AML Program.
While substantial work remains, the Bank is making progress on remediating and strengthening the Enterprise AML Program as previously disclosed, including:
1) continued advancement on clearing operational backlogs;
2) completed enhancements to transaction monitoring capabilities, including updates to the customer risk rating methodology; and
3) conducting policy transformation activities to strengthen alignment across FCRM globally.
Going forward, the Bank’s focus will be on continuing to remediate and strengthen its Enterprise AML Program, including:
1)
identified FCRM risks;
2)
3)
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 7
HOW WE PERFORMED
ECONOMIC SUMMARY AND OUTLOOK
The global economy is forecast to slow in calendar 2026 with decelerating cyclical momentum reinforced by trade barriers. The slowdown in global growth is
largely driven by slowing growth in Asia, especially the fast-growing, export-oriented emerging market economies that are affected by U.S. tariffs. Other
economies, such as those in Europe, are seeing a pickup in growth, largely from expectations of higher government spending.
The U.S. economy has entered 2026 with more momentum than was expected a quarter ago. Growth in the second half of calendar 2025 picked up significantly
from a sub-par pace in the first half of the year, buoyed by sustained strength in AI investments and higher consumer spending. TD Economics expects that tax
cuts, lower interest rates and some easing on regulation and trade uncertainty will help sustain solid momentum in the U.S. economy in calendar 2026.
The U.S. labour market has shown signs of stabilizing in recent months, after softening through much of 2025. This led the Federal Reserve to leave the federal
funds rate unchanged at a range of 3.5-3.75% in January. The Federal Reserve is balancing inflation that remains higher than its target with an unemployment rate
above a level it considers consistent with “full employment”. Inflation is expected to cool after the one-time impact of tariffs has passed, which should lead the
Federal Reserve to lower the policy rate further over the coming months to 3.00-3.25%, close to most estimates of a “neutral” level. But the pace of interest rate
cuts will depend on the evolution of the job and inflation data.
Canada’s economy continues to grow at a modest pace. U.S. import tariffs have weighed on growth both directly through lower exports and indirectly through
the resulting uncertainty, which has weakened business and consumer confidence about the future. Job growth has also slowed in line with the economy.
However, slower population growth has depressed labour force growth, pushing the unemployment rate lower in recent months despite a generally soft economic
backdrop. New federal defense and infrastructure spending, an improvement in the housing market and firmer business investments are expected to drive a
modestly stronger growth picture in 2026.
The Canadian central bank left its overnight rate steady at 2.25% in December and January, after lowering its policy rate substantially since mid-2024. Provided
inflation evolves in line with the Canadian central bank’s current forecast, the overnight rate is expected to remain unchanged over the next several quarters. A
generally weaker U.S. dollar and a smaller gap between U.S. and Canadian short-term interest rates are expected to lift the Canadian dollar. TD Economics
expects the Canadian dollar to appreciate to the 73-74 U.S. cent range by mid-2026, although it is likely to be influenced by U.S. trade policy.
HOW THE BANK REPORTS
The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with
IFRS as “reported” results.
Non-GAAP and Other Financial Measures
In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios,
supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as “adjusted” results, are utilized
to assess the Bank’s businesses and to measure the Bank’s overall performance.
To
arrive at adjusted results, the Bank adjusts for “items of note” from reported
results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP
ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted net interest margin, adjusted basic
and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank
believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank’s
performance. Non-GAAP financial measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be
comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank’s financial performance and position, and capital
management measures depict the Bank’s capital position, and both are explained in this document where they first appear.
Investment in The Charles Schwab Corporation (“Schwab”) and Insured Deposit Account (IDA) Agreement
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. The Bank
discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale.
Prior to the sale, the Bank accounted for its investment in Schwab using the equity method. The U.S. Banking segment reflected the Bank’s share of net income
from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and integration
charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab. The Bank’s share of Schwab’s earnings
available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank’s 2025 Annual Consolidated Financial
Statements.
Subsequent to the sale of the Bank’s entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through
the insured deposit account agreement (“Schwab IDA Agreement”).
On May 4, 2023, the Bank and Schwab entered into an amended Schwab IDA Agreement, with an initial expiration of July 1, 2034. Pursuant to the Schwab IDA
Agreement, the Bank makes sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate
obligation amounts. Remaining deposits are designated as floating-rate obligations. The IDA deposit floor is set at US$60 billion.
Refer to Note 26 of the Bank’s 2025 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 8
The following table provides the operating results on a reported basis for the Bank.
TABLE 2: OPERATING RESULTS – Reported
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
8,789
$
8,545
$
7,866
Non-interest income
7,796
6,949
6,183
Total revenue
16,585
15,494
14,049
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses
1,622
1,602
1,507
Non-interest expenses
8,753
8,808
8,070
Income before income taxes and share of net income from
investment in Schwab
5,171
4,102
3,260
Provision for (recovery of) income taxes
1,128
822
698
Share of net income from investment in Schwab
–
–
231
Net income – reported
4,043
3,280
2,793
Preferred dividends and distributions on other equity instruments
101
191
86
Net income available to common shareholders
$
3,942
$
3,089
$
2,707
The following table provides a reconciliation between the Bank’s adjusted and reported results. For further details refer to the “Significant Events”, “How We
Performed”, or “How Our Businesses Performed” sections.
TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Operating results – adjusted
Net interest income
1
$
8,833
$
8,594
$
7,920
Non-interest income
2
7,796
7,434
7,110
Total revenue
16,629
16,028
15,030
Provision for (recovery of) credit losses
1,039
982
1,212
Insurance service expenses
1,622
1,602
1,507
Non-interest expenses
3
8,563
8,540
7,983
Income before income taxes and share of net income from
investment in Schwab
5,405
4,904
4,328
Provision for (recovery of) income taxes
1,189
999
962
Share of net income from investment in Schwab
4
–
–
257
Net income – adjusted
4,216
3,905
3,623
Preferred dividends and distributions on other equity instruments
101
191
86
Net income available to common shareholders – adjusted
4,115
3,714
3,537
Pre-tax adjustments for items of note
Amortization of acquired intangibles
5
(34)
(34)
(61)
Restructuring charges
3
(200)
(190)
–
Acquisition and integration-related charges
3
–
(44)
(52)
Impact from the terminated FHN acquisition-related capital hedging strategy
1
(44)
(49)
(54)
Balance sheet restructuring
2
–
(485)
(927)
FDIC special assessment
3
44
–
–
Less: Impact of income taxes
Amortization of acquired intangibles
(8)
(8)
(9)
Restructuring charges
(52)
(50)
–
Acquisition and integration-related charges
–
(9)
(11)
Impact from the terminated FHN acquisition-related capital hedging strategy
(12)
(13)
(13)
Balance sheet restructuring
–
(97)
(231)
FDIC special assessment
11
–
–
Total adjustments for items of note
(173)
(625)
(830)
Net income available to common shareholders – reported
$
3,942
$
3,089
$
2,707
1
Q1 2025: ($54) million, reported in the Corporate segment.
2
i.
reported in the Corporate segment.
3
i.
ii.
iii.
iv.
4
i.
5
net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 3 and 4 for amounts.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 9
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE
1
(Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Basic earnings per share – reported
$
2.35
$
1.82
$
1.55
Adjustments for items of note
0.10
0.37
0.47
Basic earnings per share – adjusted
$
2.45
$
2.19
$
2.02
Diluted earnings per share – reported
$
2.34
$
1.82
$
1.55
Adjustments for items of note
0.10
0.36
0.47
Diluted earnings per share – adjusted
$
2.44
$
2.18
$
2.02
1
rounding.
Return on Common Equity
The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The
consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted
ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank’s use of equity.
ROE for the business segments is calculated as the segment net income as a percentage of average allocated capital. The Bank’s methodology for allocating
capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated to the business segments was
based on 11.5% of CET1 Capital for the three months ended January 31, 2026.
TABLE 5: RETURN ON COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Average common equity
$
115,250
$
114,939
$
106,133
Net income available to common shareholders – reported
3,942
3,089
2,707
Items of note, net of income taxes
173
625
830
Net income available to common shareholders – adjusted
$
4,115
$
3,714
$
3,537
Return on common equity – reported
13.6
%
10.7
%
10.1
%
Return on common equity – adjusted
14.2
12.8
13.2
Return on Tangible Common Equity
Tangible common equity (TCE) is calculated as common shareholders’ equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and
other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after
adjusting for the after-tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is
calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and
adjusted ROTCE can be utilized in assessing the Bank’s use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP
ratios.
TABLE 6: RETURN ON TANGIBLE COMMON EQUITY
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Average common equity
$
115,250
$
114,939
$
106,133
Average goodwill
18,751
18,814
19,205
Average imputed goodwill and intangibles on
investments in Schwab
–
–
5,116
Average other acquired intangibles
1
339
374
482
Average related deferred tax liabilities
(246)
(230)
(237)
Average tangible common equity
96,405
95,981
81,567
Net income available to common
shareholders – reported
3,942
3,089
2,707
Amortization of acquired intangibles, net of income taxes
26
26
52
Net income available to common shareholders
adjusted for amortization of acquired intangibles,
net of income taxes
3,968
3,115
2,759
Other items of note, net of income taxes
147
599
778
Net income available to common shareholders – adjusted
$
4,115
$
3,714
$
3,537
Return on tangible common equity
16.3
%
12.9
%
13.4
%
Return on tangible common equity – adjusted
16.9
15.4
17.2
1
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 10
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank’s business operations and activities are organized around the following four key business segments: Canadian
Personal and Commercial Banking, U.S. Banking, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the
Corporate segment.
Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank
measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is
adjusted. For further details, refer to the “How We Performed” section of this document, the “Business Focus” section in the Bank’s 2025 MD&A, and Note 27 of
the Bank’s Annual Consolidated Financial Statements for the year ended October 31, 2025.
PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the
respective segment.
Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt
income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans
consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for
income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $17 million, compared with
$17 million in the prior quarter and $15 million in the first quarter last year.
The Bank’s U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-
branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by
the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank’s
Interim Consolidated Statement of Income. At the segment level, the retailer program partners’ share of revenues and credit losses is presented in the Corporate
segment, with an offsetting amount (representing the partners’ net share) recorded in non-interest expenses, resulting in no impact to Corporate’s reported net
income (loss). The net income included in the U.S. Banking segment includes only the portion of revenue and credit losses attributable to TD under the
agreements.
Effective the first quarter of 2026, non-interest income within U.S. Banking is adjusted for the Bank’s share of losses from community-based tax-advantaged
investments accounted for using the equity method which are reclassified to provision for income taxes. This allows the Bank to measure the effective tax rate for
U.S. Banking consistently with similar institutions. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results is
reversed in the Corporate segment. Comparative amounts have been reclassified to conform with the presentation adopted in the current period.
On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Prior to the sale, the Bank accounted for its investment in Schwab using
the equity method and the share of net income from investment in Schwab was reported in the U.S. Banking segment. Amounts for amortization of acquired
intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab
were recorded in the Corporate segment. Beginning in the third quarter of fiscal 2025, the U.S. Banking segment no longer includes contributions from Schwab
and consequently discussions of the U.S. Banking segment’s performance exclude Schwab.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 11
9
TABLE 7: CANADIAN PERSONAL AND COMMERCIAL BANKING
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
4,394
$
4,304
$
4,135
Non-interest income
1,027
1,001
1,014
Total revenue
5,421
5,305
5,149
Provision for (recovery of) credit losses – impaired
424
447
459
Provision for (recovery of) credit losses – performing
12
90
62
Total provision for (recovery of) credit losses
436
537
521
Non-interest expenses
2,147
2,178
2,086
Provision for (recovery of) income taxes
794
725
711
Net income
$
2,044
$
1,865
$
1,831
Selected volumes and ratios
Return on common equity
1
32.1
%
30.4
%
31.4
%
Net interest margin (including on securitized assets)
2
2.83
2.82
2.81
Efficiency ratio
39.6
41.1
40.5
Number of Canadian retail branches at period end
1,043
1,051
1,063
Average number of full-time equivalent staff
3
33,660
33,325
32,253
1
2
GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this document and the Glossary in the Bank’s first quarter 2026
MD&A for additional information about these metrics.
3
The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.
Quarterly comparison – Q1 2026 vs. Q1 2025
Canadian Personal and Commercial Banking net income for the quarter was $2,044 million, an increase of $213 million, or 12%, compared with the first quarter
last year, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses. The annualized ROE for the quarter was 32.1%, compared
with 31.4% in the first quarter last year.
Revenue for the quarter was $5,421 million, an increase of $272 million, or 5%, compared with the first quarter last year. Net interest income was $4,394 million,
an increase of $259 million, or 6%, primarily reflecting volume growth and higher loan margins. Average loan volumes increased $32 billion, or 5%, reflecting 5%
growth in personal loans and 6% growth in business loans. Average deposit volumes increased $16 billion, or 3%, reflecting 3% growth in personal deposits and
5% growth in business deposits. Net interest margin was 2.83%, an increase of 2 basis points (bps), primarily due to higher margins on loans, partially offset by
changes in balance sheet mix. Non-interest income was $1,027 million, an increase of $13 million, or 1%.
PCL for the quarter was $436 million, a decrease of $85 million compared with the first quarter last year. PCL – impaired was $424 million, a decrease of
$35 million, or 8%, largely reflecting lower provisions in the commercial lending portfolio, partially offset by credit migration in the consumer lending portfolios and
volume growth. PCL – performing was $12 million, a decrease of $50 million compared with the first quarter last year. The performing provisions this quarter were
largely related to credit migration in the consumer lending portfolio and volume growth, partially offset by the impact of a model update in the other personal
lending portfolio and an improvement to the macroeconomic forecast. Total PCL as an annualized percentage of credit volume was 0.28%, a decrease of 7 bps
compared with the first quarter last year.
Non-interest expenses for the quarter were $2,147 million, an increase of $61 million, or 3%, compared with the first quarter last year, primarily reflecting higher
employee-related expenses.
The efficiency ratio for the quarter was 39.6%, compared with 40.5% in the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Canadian Personal and Commercial Banking net income for the quarter was $2,044 million, an increase of $179 million, or 10%, compared with the prior quarter,
primarily reflecting higher revenue, lower PCL and lower non-interest expenses. The annualized ROE for the quarter was 32.1%, compared with 30.4% in the prior
quarter.
Revenue increased $116 million, or 2%, compared with the prior quarter. Net interest income increased $90 million, or 2%, reflecting volume growth and higher
loan margins. Average loan volumes increased $9 billion, or 1%, reflecting 1% growth in personal loans and 2% growth in business loans. Average deposit
volumes increased $6 billion, or 1%, reflecting 1% growth in personal deposits and 2% growth in business deposits. Net interest margin was 2.83%, an increase of
1 basis point (bp), primarily due to higher margins on loans. As we look forward to the second quarter, we expect net interest margin to be relatively stable
.
interest income increased $26 million, or 3%, compared with the prior quarter, reflecting business growth.
PCL for the quarter was $436 million, a decrease of $101 million compared with the prior quarter. PCL – impaired was $424 million, a decrease of $23 million, or
5%, largely reflecting lower provisions in the commercial lending portfolio, partially offset by credit migration in the consumer lending portfolios. PCL – performing
was $12 million, a decrease of $78 million compared with the prior quarter. The performing provisions this quarter were largely related to credit migration in the
consumer lending portfolio and volume growth, partially offset by the impact of a model update in the other personal lending portfolio and improvement to the
macroeconomic forecast. Total PCL as an annualized percentage of credit volume was 0.28%, a decrease of 7 bps compared with the prior quarter.
Non-interest expenses decreased $31 million, or 1%, compared with the prior quarter.
The efficiency ratio was 39.6%, compared with 41.1% in the prior quarter.
9
deposit reinvestment rates and maturity profiles, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect Future Results” section of the Bank’s
2025 MD&A and the first quarter 2026 MD&A.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 12
TABLE 8: U.S. BANKING
(millions of dollars, except as noted)
For the three months ended
January 31
October 31
January 31
Canadian Dollars
2026
2025
2025
Net interest income
$
$
$
Non-interest income (loss) – reported
1
(118)
Non-interest income – adjusted
1,2,3
Total revenue – reported
Total revenue – adjusted
2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(99)
(27)
(78)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
2,4
Provision for (recovery of) income taxes – reported
1
(28)
Provision for (recovery of) income taxes – adjusted
1,2
U.S. Banking net income excluding Schwab – reported
U.S. Banking net income excluding Schwab – adjusted
2
Share of net income from investment in Schwab
5,6
–
–
U.S. Banking net income – reported
$
$
$
U.S. Banking net income – adjusted
2
U.S. Dollars
Net interest income
$
$
$
Non-interest income (loss) – reported
1
(82)
Non-interest income – adjusted
1,2,3
Total revenue – reported
Total revenue – adjusted
2
Provision for (recovery of) credit losses – impaired
Provision for (recovery of) credit losses – performing
(72)
(18)
(53)
Total provision for (recovery of) credit losses
Non-interest expenses – reported
Non-interest expenses – adjusted
2,4
Provision for (recovery of) income taxes – reported
1
(20)
Provision for (recovery of) income taxes – adjusted
1,2
U.S. Banking net income excluding Schwab – reported
U.S. Banking net income excluding Schwab – adjusted
2
Share of net income from investment in Schwab
5,6
–
–
U.S. Banking net income – reported
$
$
$
U.S. Banking net income – adjusted
2
Selected volumes and ratios
U.S. Banking return on common equity excluding Schwab – reported
7
%
%
%
U.S. Banking return on common equity excluding Schwab – adjusted
2,7
U.S. Banking return on common equity – reported
7
U.S. Banking return on common equity – adjusted
2,7
Net interest margin
2,8
Efficiency ratio – reported
1
Efficiency ratio – adjusted
1,2
Assets under administration (billions of U.S. dollars)
9
$
$
$
Assets under management (billions of U.S. dollars)
9
Number of U.S. banking stores
Average number of full-time equivalent staff
1
using the equity method which are reclassified to provision for income taxes. The adjustment between non-interest income and provision for income taxes reflected in U.S. Banking results
is reversed in the Corporate segment. The adjustment for the quarter was $184 million (US$132 million), compared with $145 million (US$105 million) in the prior quarter and $164 million
(US$116 million) in the first quarter last year. Comparative amounts have been reclassified to conform with the presentation adopted in the current period.
2
Glossary in the Bank’s first quarter 2026 MD&A.
3
i.
US$489 million after-tax).
4
i.
5
6
7
8
and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is
adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Net interest income and
average interest-earning assets used in the calculation are non-GAAP financial measures.
9
For additional information about this metric, refer to the Glossary in the Bank’s first quarter 2026 MD&A.
Quarterly comparison – Q1 2026 vs. Q1 2025
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $897 million (US$642 million), compared with the first quarter last year, and
U.S. Banking adjusted net income was $1,007 million (US$723 million), an increase of $168 million (US$129 million), compared with the first quarter last year, both
reflecting the impact of U.S. balance sheet restructuring activities and lower PCL, partially offset by higher governance and control investments, including costs for
U.S. BSA/AML remediation in the current quarter, and higher employee-related expenses. The reported and adjusted annualized ROE for the quarter were 9.9%
and 9.6%, respectively, compared with 1.3% and 7.5%, respectively, in the first quarter last year.
Reported and adjusted revenue for the quarter was US$2,941 million, an increase of US$863 million, or 42%, on a reported basis, and an increase of
US$211 million, or 8%, on an adjusted basis, compared with the first quarter last year. Net interest income of US$2,372 million, increased US$212 million, or 10%,
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 13
10
11
12
largely reflecting higher product margins and the impact of U.S. balance sheet restructuring activities. Net interest margin of 3.38%, increased 52 bps, due to
higher product margins, the impact of U.S. balance sheet restructuring activities, and the normalization of elevated liquidity levels (which positively impacted net
interest margin by 19 bps). Reported and adjusted non-interest income was US$569 million, an increase of US$651 million, on a reported basis, compared with
the first quarter last year, reflecting the impact of U.S. balance sheet restructuring activities in the first quarter last year. On an adjusted basis, non-interest income
was relatively flat compared with the first quarter last year.
Average loan volumes decreased US$18 billion, or 9%, compared with the first quarter last year. Personal loans decreased 7% and business loans decreased
11%, reflecting U.S. balance sheet restructuring activities. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet
restructuring program, core average loan volumes increased US$3 billion, or 2%
,
. Average deposit volumes decreased US$14 billion, or 4%, reflecting a 13%
decrease in sweep deposits, a 2% decrease in personal deposits, and a 1% decrease in business deposits.
Assets under administration (AUA) were US$47 billion as at January 31, 2026, an increase of US$4 billion, or 9%, compared with the first quarter last year, and
assets under management (AUM) were US$11 billion as of January 31, 2026, an increase of US$2 billion, or 22%, compared with the first quarter last year, both
reflecting net asset growth and market appreciation.
PCL for the quarter was US$212 million, a decrease of US$106 million compared with the first quarter last year. PCL – impaired was US$284 million, a decrease
of US$87 million, or 23%, reflecting lower provisions in both the consumer and commercial lending portfolios. PCL – performing was a recovery of US$72 million,
compared with a recovery of US$53 million in the first quarter last year. The performing recovery this quarter largely reflects an improvement to the
macroeconomic forecast and migration from performing to impaired in the commercial lending portfolio. U.S. Banking PCL including only the Bank’s share of PCL
in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.49%, a decrease of 18 bps compared with the first quarter last year.
Reported non-interest expenses for the quarter were US$1,778 million, an increase of US$103 million, or 6%, compared to the first quarter last year, reflecting
higher governance and control investments including costs of US$148 million for U.S. BSA/AML remediation, and higher employee-related expenses, partially
offset by the expense recovery of the FDIC special assessment charge. Adjusted non-interest expenses for the quarter were US$1,810 million, an increase of
US$135 million, or 8%, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher employee-related
expenses.
The reported and adjusted efficiency ratios for the quarter were 60.5% and 61.5%, respectively, compared with 80.6% and 61.4%, respectively, in the first
quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
U.S. Banking reported net income was $1,040 million (US$747 million), an increase of $321 million (US$227 million), or 45% (44% in U.S. dollars), compared with
the prior quarter, primarily reflecting the impact of U.S. balance sheet restructuring activities in the prior quarter, an adjustment for client deposit rates in the prior
quarter, and the expense recovery of the FDIC special assessment charge in the current quarter, partially offset by higher employee-related expenses and lower
fee income. U.S. Banking adjusted net income was $1,007 million (US$723 million), relatively flat compared to the prior quarter, primarily reflecting higher
employee-related expenses and lower fee income, largely offset by an adjustment for client deposit rates in the prior quarter. The reported and adjusted
annualized ROE for the quarter were 9.9% and 9.6%, respectively, compared with 6.7% and 9.3%, respectively, in the prior quarter.
Reported and adjusted revenue for the quarter was US$2,941 million, an increase of US$345 million, or 13%, on a reported basis, and an increase of
US$71 million, or 2%, on an adjusted basis, compared with the prior quarter. Net interest income of US$2,372 million, increased US$91 million, or 4%, largely
reflecting an adjustment for client deposit rate in the prior quarter and higher loan margins in the current quarter. Reported net interest margin of 3.38%, increased
13 bps, due to an adjustment for client deposit rates in the prior quarter and higher loan margins from improved product mix. Net interest margin is expected to
modestly increase
in the second quarter of fiscal 2026
. Reported and adjusted non
-
interest income was US$569 million, an increase of US$254
million, or 81%,
on a reported basis, reflecting the impact of U.S. balance sheet restructuring activities in the prior quarter, partially offset by lower fee income. On an adjusted
basis, non-interest income decreased US$20 million, or 3%, reflecting lower fee income.
Average loan volumes decreased US$2 billion, or 1%, compared with the prior quarter, reflecting a 3% decrease in business loans, partially offset by a 1%
increase in personal loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, core
average loan volumes increased US$1 billion, or 1%
10
,11
.
Average deposit volumes decreased US$5 billion, or 2%, compared with the prior quarter, reflecting a 5%
decrease in sweep deposits. Personal deposits and business deposits are relatively flat compared to the prior quarter.
AUA were US$47 billion as at January 31, 2026, an increase of US$1 billion, or 2%, compared with the prior quarter, and AUM were US$11 billion as at
January 31, 2026, an increase of US$1 billion or 10%, compared with the prior quarter, both reflecting net asset growth and market appreciation.
PCL for the quarter was US$212 million, a decrease of US$8 million compared with the prior quarter. PCL – impaired was US$284 million, an increase of
US$46 million, or 19%, largely reflecting higher provisions in the commercial lending portfolio. PCL – performing was a recovery of US$72 million, compared with a
recovery of US$18 million in the prior quarter. The performing recovery this quarter largely reflects an improvement to the macroeconomic forecast and migration
from performing to impaired in the commercial lending portfolio. U.S. Banking PCL including only the Bank’s share of PCL in the U.S. strategic cards portfolio, as
an annualized percentage of credit volume was 0.49%, a decrease of 1 bp compared with the prior quarter.
Reported non-interest expenses for the quarter were US$1,778 million, a decrease of US$23 million, or 1%, compared with the prior quarter, reflecting the
expense recovery of the FDIC special assessment charge, partially offset by higher employee-related expenses. Adjusted non-interest expenses for the quarter
were US$1,810 million, an increase of US$9 million, compared with the prior quarter, reflecting higher employee-related costs.
The reported and adjusted efficiency ratios for the quarter were 60.5% and 61.5%, respectively, compared with 69.4% and 62.8%, respectively, in the prior
period.
Following the end of the first quarter of fiscal 2026, the Bank completed the conversion of its Nordstrom credit card portfolio onto the Bank’s servicing platform. The
Bank became the servicer of the portfolio and will receive a greater share of revenue and credit losses. The Bank expects a charge of approximately
US$145 million pre-tax, reflecting an adjustment of amounts to be recovered from Nordstrom for future credit losses, to be recorded as an Item of Note in the
second quarter of fiscal 2026.
10
auto dealer portfolio, and other non-core portfolios. Q1 2026 average loan volumes: US$175 billion (Q4 2025: US$177 billion; Q1 2025: US$192 billion). Q1 2026 average loan volumes
of loan portfolios identified for sale or run-off: US$11 billion (Q4 2025: US$14 billion; Q1 2025: US$32 billion). Q1 2026 average loan volumes excluding loan portfolios identified for sale
or run-off: US$164 billion (Q4 2025: US$163 billion; Q1 2025: US$160 billion).
11
document.
12
execution of planned restructuring opportunities, and other variables, and are subject to inherent risks and uncertainties, including those set out in the “Risk Factors That May Affect
Future Results” section of this document.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 14
TABLE 9: WEALTH MANAGEMENT AND INSURANCE
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income
$
406
$
389
$
369
Non-interest income
3,500
3,399
3,229
Total revenue
3,906
3,788
3,598
Insurance service expenses
1
1,622
1,602
1,507
Non-interest expenses
1,258
1,239
1,173
Provision for (recovery of) income taxes
269
248
238
Net income
$
757
$
699
$
680
Selected volumes and ratios
Return on common equity
45.3
%
43.1
%
42.7
%
Return on common equity – Wealth Management
2
66.3
66.3
61.9
Return on common equity – Insurance
22.7
18.1
21.9
Efficiency ratio
32.2
32.7
32.6
Efficiency ratio, net of ISE
3
55.1
56.7
56.1
Assets under administration (billions of Canadian dollars)
4
$
771
$
759
$
687
Assets under management (billions of Canadian dollars)
610
601
556
Average number of full-time equivalent staff
15,872
15,829
15,176
1
2
3
Q1 2025: $2,091 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and the
Glossary in the Bank’s first quarter 2026 MD&A for additional information about this metric.
4
Includes
AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment.
Quarterly comparison – Q1 2026 vs. Q1 2025
Wealth Management and Insurance net income for the quarter was $757 million, an increase of $77 million, or 11%, compared with the first quarter last year,
reflecting Wealth Management net income of $574 million, an increase of $62 million, or 12%, compared with the first quarter last year, and Insurance net income
of $183 million, an increase of $15 million, or 9%, compared with the first quarter last year. The annualized ROE for the quarter was 45.3%, compared with 42.7%
in the first quarter last year. Wealth Management annualized ROE for the quarter was 66.3%, compared with 61.9% in the first quarter last year, and Insurance
annualized ROE for the quarter was 22.7% compared with 21.9% in the first quarter last year.
Revenue for the quarter was $3,906 million, an increase of $308 million, or 9%, compared with the first quarter last year. Non-interest income was
$3,500 million, an increase of $271 million, or 8%, reflecting higher insurance earned premiums, fee-based revenues from asset growth, and transaction revenue.
Net interest income was $406 million, an increase of $37 million, or 10%, compared with the first quarter last year, reflecting higher deposit volumes.
AUA were $771 billion as at January 31, 2026, an increase of $84 billion, or 12%, and AUM were $610 billion as at January 31, 2026, an increase of $54 billion,
or 10%, compared with the first quarter last year, both reflecting market appreciation and net asset growth.
Insurance service expenses for the quarter were $1,622 million, an increase of $115 million, or 8%, compared with the first quarter last year, primarily reflecting
increased claims severity.
Non-interest expenses for the quarter were $1,258 million, an increase of $85 million, or 7%, compared with the first quarter last year, reflecting higher variable
compensation commensurate with higher revenue, increased technology investments, and higher employee-related expenses.
The efficiency ratio for the quarter was 32.2%, compared with 32.6% in the first quarter last year. The efficiency ratio, net of ISE for the quarter was 55.1%,
compared with 56.1% in the first quarter last year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Wealth Management and Insurance net income for the quarter was $757 million, an increase of $58 million, or 8%, compared with the prior quarter, reflecting
Wealth Management net income of $574 million, an increase of $17 million, or 3%, compared with the prior quarter, and Insurance net income of $183 million, an
increase of $41 million, or 29%, compared with the prior quarter. The annualized ROE for the quarter was 45.3%, compared with 43.1% in the prior quarter. Wealth
Management annualized ROE for the quarter was 66.3%, flat to the prior quarter, and Insurance annualized ROE for the quarter was 22.7% compared with 18.1%
in the prior quarter.
Revenue increased $118 million, or 3%, compared with the prior quarter. Non-interest income increased $101 million, or 3%, reflecting strong underlying
insurance performance and higher fee-based revenues. Net interest income increased $17 million, or 4%, reflecting higher deposit volumes.
AUA increased $12 billion, or 2%, and AUM increased $9 billion, or 1%, compared with the prior quarter, both reflecting market appreciation.
Insurance service expenses were relatively flat compared with the prior quarter.
Non-interest expenses for the quarter were $1,258 million, an increase of $19 million, or 2%, compared with the prior quarter, primarily reflecting higher variable
compensation commensurate with higher revenue.
The efficiency ratio for the quarter was 32.2%, compared with 32.7% in the prior quarter. The efficiency ratio, net of ISE for the quarter was 55.1%, compared
with 56.7% in the prior quarter.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 15
TABLE 10: WHOLESALE BANKING
(millions of Canadian dollars, except as noted)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net interest income (loss) (TEB)
$
(75)
$
(66)
$
(107)
Non-interest income
2,545
2,266
2,107
Total revenue
2,470
2,200
2,000
Provision for (recovery of) credit losses – impaired
216
28
33
Provision for (recovery of) credit losses – performing
(44)
(4)
39
Total provision for (recovery of) credit losses
172
24
72
Non-interest expenses – reported
1,563
1,559
1,535
Non-interest expenses – adjusted
1,2
1,563
1,515
1,483
Provision for (recovery of) income taxes (TEB) – reported
174
123
94
Provision for (recovery of) income taxes (TEB) – adjusted
1
174
132
105
Net income – reported
$
561
$
494
$
299
Net income – adjusted
1
561
529
340
Selected volumes and ratios
Trading-related revenue (TEB)
3
$
1,146
$
865
$
904
Average gross lending portfolio (billions of Canadian dollars)
4
93.9
90.0
100.9
Return on common equity – reported
5
12.6
%
11.6
%
7.3
%
Return on common equity – adjusted
1,5
12.6
12.4
8.3
Efficiency ratio – reported
63.3
70.9
76.8
Efficiency ratio – adjusted
1
63.3
68.9
74.2
Average number of full-time equivalent staff
7,334
7,438
6,919
1
Glossary in the Bank’s first quarter 2026 MD&A.
2
($41 million after tax).
3
Q1 2025: $1,308 million). Trading-related revenue (TEB) is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section and
the Glossary in the Bank’s first quarter 2026 MD&A for additional information about this metric.
4
5
Quarterly comparison – Q1 2026 vs. Q1 2025
Wholesale Banking reported and adjusted net income for the quarter were $561 million. Reported net income for the quarter increased $262 million, or 88%,
compared with the first quarter last year, primarily reflecting higher revenues, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net
income increased $221 million, or 65%, compared with the first quarter last year.
Revenue for the quarter was $2,470 million, an increase of $470 million, or 24%, compared with the first quarter last year. Higher revenue primarily reflects
higher trading-related revenue, lending revenue, advisory fees, and underwriting fees, partially offset by the net change in fair value of loan underwriting
commitments.
PCL for the quarter was $172 million, an increase of $100 million compared with the first quarter last year. PCL – impaired was $216 million, an increase of
$183 million compared with the prior year, primarily reflecting a small number of impairments across various industries. PCL – performing was a recovery of
$44 million, compared with a build of $39 million in the prior year. The performing recovery this quarter was driven by migration from performing to impaired.
Reported non-interest expenses for the quarter were $1,563 million, an increase of $28 million, or 2%, compared with the first quarter last year, primarily
reflecting higher operating costs, including technology and front office, spend supporting business growth, and higher variable compensation, partially offset by the
cessation of acquisition and integration-related costs. On an adjusted basis, non-interest expenses were $1,563 million, an increase of $80 million, or 5%.
Quarterly comparison – Q1 2026 vs. Q4 2025
Wholesale Banking reported and adjusted net income for the quarter were $561 million. Reported net income increased $67 million, or 14%, compared with the
prior quarter, primarily reflecting higher revenues, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net income increased
$32 million, or 6%.
Revenue for the quarter increased $270 million, or 12%, compared with the prior quarter. Higher revenue primarily reflects higher trading-related revenue,
lending revenue, and net change in fair value of the equity investment portfolio, partially offset by lower underwriting and advisory fees.
PCL for the quarter was $172 million, an increase of $148 million compared with the prior quarter. PCL – impaired was $216 million, an increase of $188 million,
primarily reflecting a small number of impairments across various industries. PCL – performing was a recovery of $44 million, compared with a recovery of
$4 million in the prior quarter. The performing recovery this quarter was driven by migration from performing to impaired.
Reported non-interest expenses for the quarter increased $4 million, relatively flat compared with the prior quarter, primarily reflecting higher variable
compensation, partially offset by higher acquisition and integration-related costs and higher spend supporting business growth in the prior quarter. On an adjusted
basis, non-interest expenses increased $48 million, or 3%.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 16
TABLE 11: CORPORATE
(millions of Canadian dollars)
For the three months ended
January 31
October 31
January 31
2026
2025
2025
Net income (loss) – reported
$
(359)
$
(497)
$
(359)
Adjustments for items of note
Amortization of acquired intangibles
34
34
61
Restructuring charges
200
190
–
Impact from the terminated FHN acquisition-related capital hedging strategy
44
49
54
Balance sheet restructuring
–
102
–
Less: impact of income taxes on items of note
72
73
22
Net income (loss) – adjusted
1
$
(153)
$
(195)
$
(266)
Decomposition of items included in net income (loss) – adjusted
Net corporate expenses
1
$
(515)
$
(537)
$
(370)
Other
362
342
104
Net income (loss) – adjusted
1
$
(153)
$
(195)
$
(266)
Selected volumes
Average number of full-time equivalent staff
2
18,098
18,371
17,800
1
Glossary in the Bank’s first quarter 2026 MD&A.
2
The change mainly impacts the Canadian Personal and Commercial Banking segment. Average number of full-time equivalent staff has been restated for comparative periods.
Quarterly comparison – Q1 2026 vs. Q1 2025
Corporate segment’s reported net loss for the quarter was $359 million, flat compared with the first quarter last year. The year-over-year net loss primarily reflects
restructuring charges and higher net corporate expenses, largely offset by higher revenue from treasury and balance sheet management activities. Net corporate
expenses increased $145 million compared with the first quarter last year, primarily reflecting continued investments in governance and controls. The adjusted net
loss for the quarter was $153 million, compared with $266 million in the prior year.
Quarterly comparison – Q1 2026 vs. Q4 2025
Corporate segment’s reported net loss for the quarter was $359 million, compared with $497 million in the prior quarter. The lower net loss primarily reflects the
impact of balance sheet restructuring activities in the prior quarter. The adjusted net loss for the quarter was $153 million, compared with $195 million in the prior
quarter.
TD BANK GROUP • FIRST QUARTER 2026 • EARNINGS NEWS RELEASE
Page 17
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If you:
And your inquiry relates to:
Are a registered shareholder (your name appears
on your TD share certificate)
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of
shareholder materials or stopping (or resuming)
receiving annual and quarterly reports
Transfer Agent:
TSX Trust Company
301-100 Adelaide Street West
Toronto, ON M5H 4H1
1-800-387-0825 (Canada and U.S. only)
or 416-682-3860
Facsimile: 1-888-249-6189
shareholderinquiries@tmx.com or www.tsxtrust.com
Hold your TD shares through the
Direct Registration System
in the United States
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
eliminating duplicate mailings of shareholder
materials or stopping (or resuming) receiving annual
and quarterly reports
Co-Transfer Agent and Registrar:
Computershare Trust Company, N.A.
P.O. Box 43006
Providence, RI 02940-3006
or
Computershare Trust Company, N.A.
150 Royall Street
Suite 101
Canton, MA 02021
1-866-233-4836
TDD for hearing impaired: 1-800-231-5469
Shareholders outside of U.S.: 201-680-6578
TDD shareholders outside of U.S.: 201-680-6610
Email inquiries: web.queries@computershare.com
For electronic access to your account visit:
www.computershare.com/investor
Beneficially own TD shares that are held in the
name of an intermediary, such as a bank, a trust
company, a securities broker or other nominee
Your TD shares, including questions regarding the
dividend reinvestment plan and mailings of
shareholder materials
Your intermediary
For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by
leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.
Access to Quarterly Results Materials
Interested investors, the media and others may view the first quarter earnings news release, results slides, supplementary financial information, and the Report to
Shareholders on the TD Investor Relations website at www.td.com/investor/.
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on February 26, 2026. The call will be audio webcast live through TD’s website at
9:30 a.m. ET. The call will feature presentations by TD executives on the Bank’s financial results for the first quarter and discussions of related disclosures,
followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at
www.td.com/investor
24789#.
The audio webcast and presentations will be archived at
www.td.com/investor
. Replay of the teleconference will be available until 11:59 p.m. ET on
March 13, 2026, by calling 289-819-1325 or 1-888-660-6264 (toll free). The passcode is 24789#.
Annual Meeting
Thursday, April 16, 2026
Toronto, Ontario
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by
assets and serves 28.1 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal
and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth
Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD
Cowen. TD also ranks among North America’s leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in
assets on January 31, 2026. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto Stock Exchange and New York Stock Exchange.
For further information contact:
Brooke Hales, Senior Vice President, Investor Relations, 416-307-8647, Brooke.Hales@td.com
Gabrielle Sukman, Senior Manager, Corporate and Public Affairs, 416-983-1854, Gabrielle.Sukman@td.com
TD BANK GROUP DECLARES DIVIDENDS
(all amounts in Canadian dollars)
TORONTO – February 26, 2026 -
that a dividend in an amount of one dollar and eight cents ($1.08) per fully paid common share in
the capital stock of the Bank has been declared for the quarter ending April 30, 2026, payable on
and after April 30, 2026, to shareholders of record at the close of business on April 9, 2026.
In lieu of receiving their dividends in cash, holders of the Bank’s common shares may choose to
have their dividends reinvested in additional common shares of the Bank in accordance with the
Dividend Reinvestment Plan (the “Plan”).
Under the Plan, the Bank has the discretion to either purchase the additional common shares in
the open market or issue them from treasury. If issued from treasury, the Bank may decide to
apply a discount of up to 5% to the Average Market Price (as defined in the Plan) of the additional
shares. For the April 30, 2026 dividend, the Bank will purchase the additional shares in the open
market and therefore no discount will apply.
Registered holders of record of the Bank's common shares wishing to join the Plan can obtain an
Enrolment Form from TSX Trust Company (1-800-387-0825) or on the Bank's website,
www.td.com/dividends/drip. In order to participate in the Plan in time for this dividend, Enrolment
Forms for registered holders must be received by TSX Trust Company at P.O. Box 4229, Postal
Station A, Toronto, Ontario, M5W 0G1, or by facsimile at 1-888-488-1416, before the close of
business on April 9, 2026. Beneficial or non-registered holders of the Bank's common shares
wishing to join the Plan must contact their financial institution or broker for instructions on how to
enroll in advance of the above date.
Registered holders who participate in the Plan and who wish to terminate that participation so that
cash dividends to which they are entitled to be paid on and after April 30, 2026 are not reinvested
in common shares under the Plan must deliver written notice to TSX Trust Company at the above
address by no later than April 9, 2026. Beneficial or non-registered holders who participate in the
Plan and who wish to terminate that participation so that cash dividends to which they are entitled
to be paid on and after April 30, 2026 are not reinvested in common shares under the Plan must
contact their financial institution or broker for instructions on how to terminate participation in the
Plan in advance of April 9, 2026.
The Bank also announced that dividends have been declared on the following Non-Cumulative
Redeemable Class A First Preferred Shares of the Bank, payable on and after April 30, 2026, to
shareholders of record at the close of business on April 9, 2026:
●
●
●
●
●
The Bank for the purposes of the Income Tax Act (Canada) and any similar provincial legislation
advises that the dividend declared for the quarter ending April 30, 2026 and all future dividends
will be eligible dividends unless indicated otherwise.
About TD Bank Group
The Toronto -Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD"
or the "Bank"). TD is the sixth largest bank in North America by assets and serves 28.1 million
clients in four key businesses operating in a number of locations in financial centres around the
globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto
Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth
Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD
Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks
among North America's leading digital banks, with more than 13 million active mobile users in
Canada and the U.S. TD had $2.1 trillion in assets on January 31, 2026. The Toronto -Dominion
Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock
Exchange.
For more information contact: Jennifer dela Cruz
Business Management Specialist, Treasury and
Legal Department – Shareholder Relations
(416) 944-6367
Toll free 1-866-756-8936
Gabrielle Sukman
Senior Manager, Corporate and Public Affairs
(416) 983-1854
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, Raymond Chun, Group President and Chief Executive Officer of The Toronto-
Dominion Bank, certify the following:
1.
Review
: I have reviewed the interim financial report and interim MD&A (together, the
"interim filings") of The Toronto-Dominion Bank (the "issuer") for the interim period
ended January 31, 2026.
2.
No misrepresentations
: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material fact or omit
to state a material fact required to be stated or that is necessary to make a statement not
misleading in light of the circumstances under which it was made, with respect to the
period covered by the interim filings.
3.
Fair presentation
: Based on my knowledge, having exercised reasonable diligence,
the interim financial report together with the other financial information included in the
interim filings fairly present in all material respects the financial condition, financial
performance and cash flows of the issuer, as of the date of and for the periods
presented in the interim filings.
4.
Responsibility
: The issuer's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (DC&P) and internal
control over financial reporting (ICFR), as those terms are defined in National Instrument
52-109
Certification of Disclosure in Issuers' Annual and Interim Filings
, for the issuer.
5.
Design
: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the
issuer's other certifying officer(s) and I have, as at the end of the period covered by the
interim filings
(a) designed DC&P, or caused it to be designed under our supervision, to provide
reasonable assurance that
(i) material information relating to the issuer is made known to us by others,
particularly during the period in which the interim filings are being prepared; and
(ii) information required to be disclosed by the issuer in its annual filings, interim
filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified
in securities legislation; and
(b) designed ICFR, or caused it to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with the issuer's GAAP.
5.1
Control framework
: The control framework the issuer's other certifying officer(s)
and I used to design the issuer's ICFR is
based on criteria established in Internal Control
– Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the COSO criteria) in 2013.
5.2 N/A
5.3 N/A
6.
Reporting changes in ICFR
: The issuer has disclosed in its interim MD&A any
change in the issuer's ICFR that occurred during the period beginning on November 1,
2025, and ended on January 31, 2026, that has materially affected, or is reasonably
likely to materially affect, the issuer's ICFR.
Date: February 26, 2026
/s/ Raymond Chun
Raymond Chun
Group President and Chief Executive Officer
FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE
I, Kelvin Tran, Group Head and Chief Financial Officer of The Toronto-Dominion Bank,
certify the following:
1.
Review
: I have reviewed the interim financial report and interim MD&A (together, the
"interim filings") of The Toronto-Dominion Bank (the "issuer") for the interim period
ended January 31, 2026.
2.
No misrepresentations
: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material fact or omit
to state a material fact required to be stated or that is necessary to make a statement not
misleading in light of the circumstances under which it was made, with respect to the
period covered by the interim filings.
3.
Fair presentation
: Based on my knowledge, having exercised reasonable diligence,
the interim financial report together with the other financial information included in the
interim filings fairly present in all material respects the financial condition, financial
performance and cash flows of the issuer, as of the date of and for the periods
presented in the interim filings.
4.
Responsibility
: The issuer's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (DC&P) and internal
control over financial reporting (ICFR), as those terms are defined in National Instrument
52-109
Certification of Disclosure in Issuers' Annual and Interim Filings
, for the issuer.
5.
Design
: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the
issuer's other certifying officer(s) and I have, as at the end of the period covered by the
interim filings
(a) designed DC&P, or caused it to be designed under our supervision, to provide
reasonable assurance that
(i) material information relating to the issuer is made known to us by others,
particularly during the period in which the interim filings are being prepared; and
(ii) information required to be disclosed by the issuer in its annual filings, interim
filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified
in securities legislation; and
(b) designed ICFR, or caused it to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with the issuer's GAAP.
5.1
Control framework
: The control framework the issuer's other certifying officer(s)
and I used to design the issuer's ICFR is
based on criteria established in Internal Control
– Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the COSO criteria) in 2013.
5.2 N/A
5.3 N/A
6.
Reporting changes in ICFR
: The issuer has disclosed in its interim MD&A any
change in the issuer's ICFR that occurred during the period beginning on November 1,
2025, and ended on January 31, 2026, that has materially affected, or is reasonably
likely to materially affect, the issuer's ICFR.
Date: February 26, 2026
/s/ Kelvin Tran
Kelvin Tran
Group Head and Chief Financial Officer
FAQ
How did TD (TD) perform financially in the first quarter of 2026?
TD reported strong growth, with net income of
What were TD (TD) segment highlights for Q1 2026?
Canadian Personal and Commercial Banking delivered record net income of
How did TD’s credit quality and provisions for credit losses trend in Q1 2026?
Provision for credit losses was
What is TD (TD) doing about U.S. BSA/AML program remediation?
TD is executing a multi-year plan under previously agreed U.S. consent orders and plea agreements. Management expects about
What restructuring actions did TD (TD) record in the first quarter of 2026?
TD recorded
How strong is TD’s capital position after Q1 2026 results?
TD ended the quarter with a Common Equity Tier 1 capital ratio of
What were TD (TD) earnings trends in Canadian Personal and Commercial Banking?
Canadian Personal and Commercial Banking posted record net income of
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