The Toronto-Dominion Bank
- Open
- 122.07
- Day high
- 122.49
- Day low
- 120.75
- Prev close
- 121.09
- Volume
- 114K
- Mkt cap
- $200.0B
- P/E (TTM)
- 19.8
- EPS (TTM)
- $6.10
- P/B
- 2.2
- P/S
- 2.5
- Yield
- 1.31%
- Per share
- $1.58
The Toronto-Dominion Bank (TD) is a Financial Services company listed on NYSE. The stock is up 65% over the past year. Drillr has 1 published research article covering TD.
The Toronto-Dominion Bank (TD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 6 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 27, 2026 | $1.75 | $1.98 | +12.9% | $12.1B | +10.5% |
| May 28, 2026 | $1.63 | $1.74 | +6.7% | $11.8B | +4.1% |
| Feb 26, 2026 | $1.63 | $1.79 | +10.0% | $11.0B | -0.2% |
| Dec 4, 2025 | $1.46 | $1.57 | +7.8% | $15.9B | +46.7% |
| Aug 28, 2025 | $1.46 | $1.91 | +30.9% | $15.5B | +52.2% |
| May 22, 2025 | $1.25 | $1.39 | +10.8% | $15.0B | +48.8% |
| Feb 27, 2025 | $1.38 | $1.39 | +0.7% | $14.9B | +63.0% |
| Dec 5, 2024 | $1.32 | $1.26 | -4.5% | $14.7B | +58.1% |
| Aug 22, 2024 | $1.50 | $1.48 | -1.1% | $11.0B | +16.0% |
| May 23, 2024 | $1.35 | $1.50 | +11.4% | $10.7B | +15.3% |
| Feb 29, 2024 | $1.42 | $1.47 | +3.5% | $10.8B | +16.4% |
| Nov 30, 2023 | $1.37 | $1.35 | -1.5% | $13.1B | +82.2% |
TD research & analysis
The Toronto-Dominion Bank company profile
Overview
The Toronto-Dominion Bank (TSX:TD) is one of Canada's largest financial institutions and a major North American bank, founded in 1855 through the merger of The Dominion Bank and The Bank of Toronto. Headquartered in Toronto, Canada, TD Bank has grown to become a diversified financial services provider operating across Canada and the United States. The bank serves millions of customers through an extensive network of over 2,200 branches and 6,000 ATMs across both countries, offering services under the TD Bank brand in Canada and "America's Most Convenient Bank" in the United States. TD has faced significant regulatory challenges in recent years, particularly regarding anti-money laundering (AML) compliance in its U.S. operations, which has led to substantial provisions and operational restrictions that are currently being addressed through comprehensive remediation efforts.
Business
TD Bank operates as a diversified financial services institution providing banking, wealth management, and insurance services across three primary business segments. The bank's core business revolves around traditional banking services including deposit-taking, lending, and payment processing, but has expanded into comprehensive financial services. The Canadian Retail segment represents TD's largest and most profitable division, encompassing personal and commercial banking services across Canada. This segment offers everyday banking products like checking and savings accounts, mortgages, personal loans, credit cards, and small business banking services. It generates approximately 50% of the bank's total revenue and serves as the primary profit driver with consistently strong performance metrics. The U.S. Retail segment operates primarily along the Eastern seaboard of the United States, providing similar banking services to the Canadian operation but in a more competitive American market. This segment includes personal banking, commercial lending, auto financing, and point-of-sale financing partnerships. The U.S. operations contribute roughly 25-30% of total revenue but have faced significant regulatory challenges that have constrained growth. The Wealth Management and Insurance segment provides investment advisory services, asset management, brokerage services, and property & casualty insurance products. This segment includes TD's direct investing platform, financial advisory services, and institutional asset management. It represents approximately 15-20% of total revenue and has shown consistent growth in assets under management. The Wholesale Banking segment serves corporate and institutional clients with capital markets services, including investment banking, trading, underwriting, and corporate lending. This segment contributes around 10-15% of revenue but can be more volatile due to market conditions. TD completed the acquisition of Cowen Inc. to strengthen its U.S. investment banking capabilities.
Revenue model
TD Bank generates revenue through multiple streams typical of diversified banking institutions. The primary revenue source is net interest income, which represents the difference between interest earned on loans and investments versus interest paid on deposits and borrowings. This spread-based model depends heavily on interest rate environments and the bank's ability to attract low-cost deposits while lending at higher rates. Fee-based revenue constitutes another significant income stream, including account maintenance fees, transaction fees, credit card interchange fees, wealth management fees, and investment banking commissions. The wealth management division generates fees based on assets under management, while wholesale banking earns fees from underwriting, advisory services, and trading activities. The bank's customers span retail consumers, small and medium businesses, large corporations, and institutional clients. Retail customers provide stable deposit funding and consume lending products, while commercial clients offer higher-margin lending opportunities and fee-based services. Several factors influence TD's profitability margins. Interest rate environments significantly impact net interest margins - rising rates generally benefit the bank's spread income, though they can also increase funding costs and credit losses. Credit quality directly affects provisions for loan losses, with economic downturns potentially requiring substantial reserves. Regulatory compliance costs have become a major margin pressure, particularly TD's ongoing AML remediation efforts which have required hundreds of millions in investments. Competition from both traditional banks and fintech companies pressures fee income and deposit pricing. Operational efficiency remains crucial, as TD has implemented restructuring programs to manage expense growth while investing in digital capabilities and risk infrastructure.
Competitive moat
TD Bank's competitive moat is moderate but faces significant challenges. In Canada, the bank benefits from the oligopolistic structure of Canadian banking, where six major banks dominate the market with high barriers to entry due to regulatory requirements and customer switching costs. TD's extensive branch network, strong brand recognition, and integrated service offerings create customer stickiness, particularly in retail banking where customers typically maintain long-term relationships. The bank's deposit franchise represents a key competitive advantage, providing access to relatively low-cost funding compared to wholesale funding sources. TD's scale allows for operational efficiencies and investment in technology infrastructure that smaller competitors cannot match. The wealth management integration with banking services creates cross-selling opportunities and deeper customer relationships. However, TD's moat has been significantly compromised by regulatory challenges, particularly the AML compliance failures in the U.S. that have resulted in asset growth caps and substantial remediation costs. These restrictions limit TD's ability to compete effectively in the U.S. market and have damaged its reputation with regulators. Digital disruption poses ongoing threats as fintech companies and digital banks offer more convenient services and competitive pricing. Traditional advantages like branch networks become less valuable as customers increasingly prefer digital banking. Regulatory pressure continues to increase compliance costs and operational complexity across all business lines. The competitive landscape is intensifying with both traditional banks and new entrants offering innovative products. TD's ability to maintain its moat depends heavily on successfully completing AML remediation, investing effectively in digital capabilities, and maintaining its customer relationships during a period of operational constraints.
Risks & safety
TD Bank presents a moderate margin of safety with strong capital position but significant operational and regulatory risks. **Capital and Liquidity:** - CET1 ratio of 13.1% (Q1 2025), well above regulatory minimums - Strong liquidity position with nearly $99 billion in cash and short-term investments - Total assets of $1.45 trillion with diversified loan portfolio **Debt and Solvency:** - Debt-to-equity ratio of 0.44, indicating conservative leverage for a bank - No immediate solvency concerns given strong deposit base and capital ratios - Regulatory capital buffers provide cushion against potential losses **Valuation Metrics:** - P/E ratio of 13.0 suggests reasonable valuation relative to earnings - Price-to-book ratio of 1.22 indicates trading near book value - ROE of 2.3% (Q1 2025) significantly below historical levels due to regulatory issues **Key Risk Factors:** - $2.6 billion AML provision creates substantial near-term earnings drag - U.S. asset cap limits growth opportunities and competitive positioning - Ongoing regulatory scrutiny could result in additional penalties or restrictions - Credit quality normalization expected as economic conditions potentially deteriorate
Recent development
TD Bank has undergone significant strategic shifts over the past few years, primarily driven by regulatory challenges and the need for operational transformation. The most significant development has been the comprehensive AML remediation program in the U.S., which began in earnest in 2023 following regulatory scrutiny. The bank has invested over $500 million in overhauling its anti-money laundering systems, hiring AML experts from other banks and regulatory agencies, and implementing new transaction monitoring and data analytics capabilities. The bank initiated a strategic review process in late 2024 under new CEO Raymond Chun, examining all aspects of the business including potential divestitures. This comprehensive review suspended medium-term financial targets and will culminate in an investor day in the second half of 2025. As part of this process, TD completed the sale of its Schwab stake and initiated share buyback programs to optimize capital allocation. Balance sheet restructuring has become a key focus, particularly in U.S. operations where asset caps have forced the bank to actively manage its portfolio. TD has reduced U.S. assets from $434 billion to $402 billion and signed agreements to sell $9 billion in lending portfolios to create capacity for growth in priority areas. Digital transformation initiatives have accelerated, including the deployment of generative AI virtual assistants in contact centers, completion of cloud migration for the main data platform, and establishment of TD Invent as an umbrella for bank-wide innovation efforts. The bank has also formed strategic partnerships, including a multi-year relationship with Google Cloud. The acquisition and integration of TD Cowen has strengthened the wholesale banking capabilities, particularly in U.S. investment banking. However, other expansion plans, including the proposed First Horizon acquisition, were abandoned due to regulatory concerns and strategic refocusing.
TD company profile · for informational purposes only — not investment advice.
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