TD tops analyst forecasts with record earnings across Canadian banking and wholesale segments
TD Bank Group posted a third-quarter profit of $4.62 billion for the period ended July 31. That's up 38% from $3.34 billion in the same quarter last year, driven by record earnings in its Canadian businesses and wholesale banking operations, and comfortably ahead of analyst expectations.
Reported diluted earnings per share reached $2.74 for the quarter, compared with $1.89 a year earlier. On an adjusted basis, TD earned $2.77 per diluted share, well above the consensus analyst estimate of $2.47 per share compiled by LSEG Data & Analytics.
Total revenue came in at $16.89 billion, up from $15.30 billion in Q3 2025 and exceeding the analyst forecast of $15.28 billion.
Canadian lending shows resilience
Canadian Personal and Commercial Banking — the segment most directly tied to the residential mortgage and lending environment that brokers operate within — posted net income of $2.10 billion, up 7% year-over-year.
Revenue for the segment rose 5% to $5.52 billion, supported by growth in deposit and loan volumes and improved margins.
Provision for credit losses (PCL) fell to $917 million from $971 million in the prior-year quarter, a notable improvement that points to easing credit stress across TD's book as borrowers continue to work through higher-rate renewals.
Wholesale and wealth segments add momentum
Wholesale Banking delivered the sharpest segment gain in the quarter, with net income rising 76% on an adjusted basis to $743 million, driven by higher revenue and a reduction in credit-loss provisions.
US Banking net income rose 12% on an adjusted basis to C$1.07 billion (US$771 million), with return on equity climbing to 10.2%, reflecting what TD described as growing momentum south of the border.
Wealth Management and Insurance added $841 million in net income, up 20% year-over-year, on record assets, higher insurance premiums, and deposit volume growth.
TD's adjusted return on equity improved to 16% from 14.4% a year earlier, while adjusted return on tangible common equity rose to 19.1% from 17.2%, pointing to a meaningful rebound in overall capital efficiency following a difficult stretch of remediation costs.
"TD had a very strong quarter, with record earnings in our Canadian businesses and Wholesale Banking, and growing momentum in US Banking," said Raymond Chun, Group President and Chief Executive Officer of TD Bank Group.
"One year after Investor Day, we are delivering on our commitments, executing our strategy and creating value for our shareholders."
TD shares rose 1.4% in US premarket trading following the release of results.
The company joined CIBC and RBC in releasing third-quarter results Thursday, rounding out Canada's Big Six earnings season after National Bank, Bank of Montreal, and Scotiabank reported earlier in the week.
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