Bank continues to stockpile cash for bad loans – but beats analyst estimates for the quarter
Profits at TD Bank slipped in 2025’s second quarter as it set aside more cash to cover potentially souring loans amid continuing economic storm clouds in Canada.
The banking giant, which became the first of Canada’s Big Six banks to reveal its Q2 financials on Thursday morning, announced provisions for credit losses of $1.34 billion – up from $1.07 billion the same time last year.
Adjusted net income dropped to $3.63 billion ($1.97 per share) for the quarter compared with $3.79 billion ($2.04 per share) in the second quarter of 2024.
But the bank still beat expectations for Q2, with its per-share earnings higher than the $1.78 average analyst estimate and credit-loss provisions coming in below the $1.41 billion forecast.
TD eked out revenue growth on the wealth management, insurance, and capital markets sides even as uncertainty over the impact of US tariffs on the Canadian economy continues.
Net income in Canadian personal and commercial banking ticked slightly lower, falling by 1% to just under $3.5 billion. Overall, the bank reported revenue of $10.14 billion – a 4% improvement year over year.
Bank slides in Canadian bond rankings
Bloomberg reported yesterday that TD’s ranking among Canadian bond underwriters has recently fallen thanks mainly to a flurry of departures among its key banking staff.
Data compiled by the news agency showed that TD Securities’ Canadian corporate bond sales share was lower than 14% since the fiscal year began in November, placing it fifth among the Big Six in Canadian bond underwriting.
Public-sector bond sales have also fallen at TD amid a leadership reorganization at the bank and high-profile fines and penalties amounting to over $3 billion (USD) due to money-laundering compliance failures.
CEO highlights positives as economic uncertainty continues
TD has outperformed its competitors in the stock market this year, seeing its share value jumping by 17.5% in 2025 – higher than any of Canada’s other leading banks.
Raymond Chun, a long-serving TD executive who took the reins from Bharat Masrani as TD’s chief executive officer at the beginning of this year, said the bank had delivered robust quarterly results even despite ongoing trade tensions with the US. “We are operating in a fluid macroeconomic environment,” he said.
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