$TD.TO

The Toronto-Dominion Bank Prices CAD Non-Viability Contingent Capital AT1 Limited Recourse Capital Notes

The Toronto-Dominion Bank (TD.TO, TD) priced a Canadian public offering of C$1.25 billion of 5.918% Non-Viability Contingent Capital (NVCC) Additional Tier 1 (AT1) Limited Recourse Capital Notes Series 7 (LRCNs), it said overnight Thursday.The LRCNs will bear interest at a rate of 5.918 per cent annually, payable quarterly, for the initial period ending on, but excluding, July 31, 2031. Thereafter, the interest rate on the LRCNs will be reset every five years based on the prevailing 5-year Government of Canada Yield plus 2.85 per cent, it said.The LRCNs will mature on July 31, 2086. The expected closing date of the offering is June 11, 2026. TD will also issue 1.3-million Non-Cumulative 5-Year Fixed Rate Reset NVCC Preferred Shares, Series 34 to be held by Computershare Trust Company of Canada, as trustee for TD LRCN Limited Recourse Trust.Proceeds will be used for general corporate needs.Shares of the company were last seen down 0.6% at $157 on the Toronto Stock Exchange.Price: $157.45, Change: $-0.58, Percent Change: -0.37%

TD Bank Price Target Raised to $156 at RBC

RBC Capital Markets raised its price target on Toronto-Dominion Bank (TD.TO, TD) to $156 from $138.Analyst Darko Mihelic maintained an Outperform rating on shares of the Canadian bank."TD's adjusted results were above our expectations across most segments except for Canadian Personal and Commercial Banking," Mihelic said in a note to clients. "PCLs and non-interest expense were both better than we anticipated.""We like what we saw with respect to the US business but at the margin see slightly lower earnings in Canada and we scaled back buybacks a touch," the analyst said."We modestly increase our core earnings estimates across most segments and we see the investment case as still better than most other Canadian banks we cover."

TD Price Target Raised $13 at CIBC, But Kept at Neutral

CIBC noted TD Bank (TD.TO, TD) reported a "solid" second quarter, including in credit. Expense efficiencies were better than CIBC had expected and CIBC has revised its forward assumptions, resulting in higher EPS estimates. CIBC noted TD was trading at 15.3x P/E (NTM consensus), a 6% premium to the group average and effectively in line with RBC (RY.TO, RY). "We like the results, but valuation remains a challenge for us," CIBC added.CIBC's price target increases from $151 to $164 based on revised EPS estimates and a higher target multiple for the group. CIBC reiterated its Neutral rating.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $156.49, Change: $+0.31, Percent Change: +0.20%

TD Bank Target Raised To C$162 From $157, Keeps Outperform at National Bank Which Notes Canadian Segment Rebound Advances; U.S. P&C Growth Outlook Improves

TSX Closer: The Index Closes Higher For The First Time Since Monday's Record Close

The Toronto Stock Exchange closed higher on Thursday, its first winning session since Monday's record close, with the resource-heavy index buoyed by improved commodity prices, a continuing belief among investors that equity market fundamentals are strong, bullish comments from Canada Prime Minister Mark Carney in New York and cautious positivity on the economy from the Bank of Canada.The S&P/TSX Composite Index closeds up 105.65, or 0.3%, to 34,517.70, having lost more than 400 points over the prior two days. Sectors were mixed, with Info Tech up near 2.6% and Base Metals up 2.3%, helped by a higher gold price. In contrast the Battery Metals Index was down 1.15%, Energy eased near 0.5% despite a modest rise in the oil price, and Financial lost 0.8% even as The Canadian Press reported the 'Big Six' banks see reasons for optimism while navigating a 'period of volatility'.Sluggish trade negotiations between Canada and the United States are finally showing faint signs of life as a milestone looms for renewal of their three-way trade deal with Mexico, CBC News reported on Thursday. The minister responsible for Canada-U.S. trade, Dominic LeBlanc, is planning to travel to Washington, D.C., for trade talks, although his spokespeople haven't confirmed a date, the report noted. Although the Canada-U.S.-Mexico Agreement (CUSMA) is due for its first-ever joint review on July 1, LeBlanc has held just one day of in-person talks over the past seven months with his Trump administration counterpart, U.S. Trade Representative Jamieson Greer, he also noted.That report came out as Prime Minister Mark Carney prepared to pitch Canada as an investment hub at New York's Economic Club at lunchtime today.Employing U.S. President Donald Trump's marquee slogan, PM Carney told a New York City business crowd "Canada strong will help make America great again", reported CTV News. It noted the P.M. detailed his economic diversification strategy, and his plans to recalibrate Canada's relationships and reputation. "We're focused on what we can control, and that means weaving a dense web of international partnerships abroad. That's making us a much stronger, more resilient, more independent country," Carney told the business crowd.Meanwhile, the Bank of Canada on Thursday said Canada's financial system has functioned well through a challenging year as households and businesses remain in stable financial condition, and banks have strengthened their capacity to absorb shocks.However, vulnerabilities have increased in some parts of the system, noted the central bank in its annual Financial Stability Report (FSR). Stock and corporate debt valuations have risen and are high relative to historical norms, the central bank said, adding this makes markets more vulnerable to a sharp correction.The Canadian Press is reporting that Canada's major banks say they're cautiously optimistic as their latest earnings beat expectations, with executives confident they're well equipped to handle potential risks in the Canadian economy. The Big Six grew their profits in the second quarter compared with the same three-month period a year ago, while also posting results above analysts' forecasts, the report noted. Five of those; Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO) and National Bank of Canada (NA.TO) each hiked their quarterly dividend, it also noted.And while executives expressed confidence in their ability to withstand economic challenges ahead, they also acknowledged macroeconomic concerns that could shift their outlooks, according to the report. Those include the U.S.-Iran war that continues to drag on, pushing international oil prices and inflation higher. High unemployment in Canada and ongoing uncertainty over trade with the United States also cloud the outlook, they said.Of commodities, West Texas Intermediate crude oil closed with a small gain, but fell off early highs following reports the U.S. and Iran agreed to extend their ceasefire even as they earlier traded strikes. WTI crude oil for July delivery closed up US$0.22 to settle at $US$88.90 per barrel after earlier touching US$92.52. July Brent oil was down US$0.64 to US$93.65.Gold was higher midafternoon Thursday, rising off its early lows as the dollar and yields fell after reports the United States and Iran have agreed to extend a ceasefire for 60 days, lowering oil prices and easing inflation worries even a key U.S. inflation measure rose in April. Gold for July delivery was up US$52.50 to US$4,4,534.00 per ounce, after earlier touching US$4,395.60.

National Bank Also Notes TD's Improving Canadian P&C Segment Performance Trend Continues and "Positive, Albeit Modest", Margin Expansion in Canada and U.S. P&C Banking

National Bank Notes TD's Strong Credit Performance Highlighted By Lower Than Expected Losses, Lower New Formations and GILs

National Bank In First Look at TD's Q2 Notes "Credit-driven Beat"; National Has Outperform, C$157 Target on TD

Update: TD Bank Reports Q2 Adjusted Earnings Beat With Canada Ops Buoyed By Lower PCLs; Lifts Dividend

(updates on performance across business units and TD economic outlook from paragraph 11)The Toronto-Dominion Bank (TD.TO), the last of Canada's Big Six banks to report for the second quarter period, reported Thursday increased adjusted earnings that were boosted by a record contribution from Canadian Personal and Commercial Banking, primarily reflecting higher revenue and lower provisions for credit losses, while it declared a higher dividend.For Q2, TD said its adjusted diluted earnings per share stood at C$2.38, compared with $1.97 in the prior year period. FactSet had forecast $2.26. Meanwhile, adjusted net income jumped to $4,168 million, versus $3,626 million in the same period last year.Reported diluted earnings per share were $2.43, compared with $6.27, while reported net income was $4,251 million, versus $11,129 million.It had total revenues of $15,797 million compared to $22,937 million in the year earlier period. Total revenue adjusted was $16,037 million versus $15,138 million. It exceeded FactSet analysts' estimates of $14,524.3 million.The second quarter reported earnings figures included the following items of note: amortization of acquired intangibles of $33 million ($25 million after tax or 1 cent per share), compared with $43 million ($35 million after tax or 2 cents per share) in the second quarter last year. It also reported an impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $43 million ($33 million after tax or 2 cents per share), compared with $47 million ($35 million after tax or 2 cents per share) in the second quarter last year. Also, it included income tax adjustment on gain on sale of The Charles Schwab Corporation (Schwab) shares of ($288) million (($288) million after tax or (17) cents per share) and change in partnership share in the U.S. strategic cards portfolio of $197 million ($147 million after tax or 9 cents per share).Among other Q2 highlights, adjusted return on common equity, a measure of profitability and efficiency, widened to 14.4% from 12.3% in the same period last year. TD's Common Equity Tier 1 Capital ratio was 14.3%.The bank declared a dividend of $1.12 per payable on and after July 31, 2026, to shareholders of record at the close of business on July 10, 2026. It was up from $1.08 In prior quarter.PCL for the quarter was $498 million, a decrease of $124 million compared with the second quarter last year. PCL - impaired was $465 million, an increase of $37 million, or 9%, largely reflecting credit migration in the consumer lending portfolios, partially offset by lower provisions in the commercial lending portfolio. PCL - performing was $33 million, a decrease of $161 million compared with the second quarter last year."This was another strong quarter for TD. We drove record Q2 earnings in Canadian Personal and Commercial Banking, all-time high earnings in Wealth Management and Insurance and Wholesale Banking, and we accelerated momentum in U.S. Banking. We demonstrated disciplined execution as we grew return on equity and delivered our fourth consecutive quarter of positive operating leverage, on an adjusted basis. We also continue to make consistent progress on our AML remediation and enhancements, which remain our top priority," said Raymond Chun, CEO of TD Bank Group."Our bank has momentum, and we are making important investments in talent, innovation, AI and client experience, as we fundamentally restructure our cost base to drive performance and continue winning," added Chun.The U.S. Banking reported net income was $813 million, an increase of $771 million year-on-year. On an adjusted basis, net income was $960 million, an increase of 8% year-over-year. "U.S. Banking performance was supported by growth across core lending portfolios, including double-digit growth year-over-year in middle market commercial lending and TD's proprietary credit card balances," TD said.The Wealth Management and Insurance unit's net income stood at $837 million, up 18% year-over-year, driven by record assets, higher insurance earned premiums, and deposit volume growth.TD said its Wholesale Banking reported net income of $612 million for the quarter, up 46% year-over-year on a reported basis and 38% year-over-year on an adjusted basis, reflecting higher revenues and lower PCL, partially offset by higher non-interest expenses.In its economic guidance, TD said the global economic outlook continues to slow in calendar 2026."The conflict in the Middle East and resulting surge in oil prices has already lifted inflation and is expected to continue to put downward pressure on global growth. The conflict has also increased volatility in financial and commodity markets due to uncertainty over the duration of restricted oil flows through the Strait of Hormuz and elevated oil prices. While some economies, including parts of Europe, may see a modest pickup in economic activity from higher government spending later in the year, the near-term fallout from the oil supply crunch will remain a dominant theme weighing on growth in much of Asia and Europe," it added.The lender noted that Canada's economy has continued to expand at a modest pace. The impact of U.S. tariffs is evident both directly, via weaker exports in affected sectors, and indirectly, through elevated uncertainty that has tempered hiring and delayed some investment decisions."Overall, Canada's labour market has shown a lack of dynamism. Slower population growth has reduced labour force growth, which has kept the unemployment rate in a still-elevated range of 6.5%-7%. Looking ahead in 2026, a modest improvement in the economy is expected alongside a gradual improvement in housing activity, public infrastructure and defense outlays, and some firming in business investment," TD said.Shares of the bank closed down $0.31 at $155.13 in Toronto on Wednesday.

TD Bank Reports Q2 Adjusted Earnings Beat With Canada Ops Buoyed By Lower PCLs; Lifts Dividend

The Toronto-Dominion Bank (TD.TO), the last of Canada's Big Six banks to report for the second quarter period, reported Thursday increased adjusted earnings that were boosted by a record contribution from Canadian Personal and Commercial Banking, primarily reflecting higher revenue and lower provisions for credit losses, while it declared a higher dividend.For Q2, TD said its adjusted diluted earnings per share stood at C$2.38, compared with $1.97 in the prior year period. FactSet had forecast $2.26. Meanwhile, adjusted net income jumped to $4,168 million, versus $3,626 million in the same period last year.Reported diluted earnings per share were $2.43, compared with $6.27, while reported net income was $4,251 million, versus $11,129 million.It had total revenues of $15,797 million compared to $22,937 million in the year earlier period. Total revenue adjusted was $16,037 million versus $15,138 million. It exceeded FactSet analysts' estimates of $14,524.3 million.The second quarter reported earnings figures included the following items of note: amortization of acquired intangibles of $33 million ($25 million after tax or 1 cent per share), compared with $43 million ($35 million after tax or 2 cents per share) in the second quarter last year. It also reported an impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $43 million ($33 million after tax or 2 cents per share), compared with $47 million ($35 million after tax or 2 cents per share) in the second quarter last year. Also, it included income tax adjustment on gain on sale of The Charles Schwab Corporation (Schwab) shares of ($288) million (($288) million after tax or (17) cents per share) and change in partnership share in the U.S. strategic cards portfolio of $197 million ($147 million after tax or 9 cents per share).Among other Q2 highlights, adjusted return on common equity, a measure of profitability and efficiency, widened to 14.4% from 12.3% in the same period last year. TD's Common Equity Tier 1 Capital ratio was 14.3%.The bank declared a dividend of $1.12 per payable on and after July 31, 2026, to shareholders of record at the close of business on July 10, 2026. It was up from $1.08 In prior quarter.PCL for the quarter was $498 million, a decrease of $124 million compared with the second quarter last year. PCL - impaired was $465 million, an increase of $37 million, or 9%, largely reflecting credit migration in the consumer lending portfolios, partially offset by lower provisions in the commercial lending portfolio. PCL - performing was $33 million, a decrease of $161 million compared with the second quarter last year."This was another strong quarter for TD. We drove record Q2 earnings in Canadian Personal and Commercial Banking, all-time high earnings in Wealth Management and Insurance and Wholesale Banking, and we accelerated momentum in U.S. Banking. We demonstrated disciplined execution as we grew return on equity and delivered our fourth consecutive quarter of positive operating leverage, on an adjusted basis. We also continue to make consistent progress on our AML remediation and enhancements, which remain our top priority," said Raymond Chun, CEO of TD Bank Group."Our bank has momentum, and we are making important investments in talent, innovation, AI and client experience, as we fundamentally restructure our cost base to drive performance and continue winning," added Chun.Shares of the bank were ldown $0.31 at $155.13 in Toronto on Wednesday.

Earnings Flash (TD.TO) TD Bank Group Posts Q2 Adjusted net income was $4,168M, Compared with $3,626M

Earnings Flash (TD.TO) TD Bank Group) Reports Q2 Diluted EPS $2.43, Compared with $6.27

TD Announcing a Dividend in an Amount of $1.12 Per Fully Paid Common Share, Up From $1.08 In Prior Quarter

TD Says Canadian Personal and Commercial Banking Net Income $1,925M, Up 15% YoY, Primarily Reflecting Higher Revenue and Lower PCL

TD Q2 Adjusted Diluted EPS $2.38, Compared With $1.97

TSX Closer: The Index Falls for a Second Day After Monday's Record Close Amid Rise In Canadian Credit Stress

The Toronto Stock Exchange closed lower on Wednesday, falling for a second session following Monday's record close, on more profit taking and weak commodity prices, while one analyst said Bank of Nova Scotia's (BNS.TO) credit outlook "becomes more cautious" after it reported fiscal second-quarter earnings and a pair of economists noted credit stress is "rising, not breaking" in Canada.The resources-heavy S&P/TSX Composite Index closed down 241.82 points, or 0.7%, to 34,412.05, adding to the near 170 points lost Tuesday. Most sectors were lower, led by Energy, down 2.35% on lower oil. Base Metals eased about 0.2%, not helped by a drop in the gold price. Among gainers, both Industrials and Telecom rose by about 0.7%, respectively.The Financial sector lost near 0.3% on a day when the trio of Scotiabank, Bank of Montreal (BMO.TO) and National Bank (NA.TO) each reported their respective fiscal Q2 results. Canadian Imperial Bank of Commerce (CM.TO), Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) will each report theirs Thursday.On Scotiabank, National Bank noted it reported Q2 core cash EPS of $2.02 versus a National Bank estimate of $1.87 and consensus of $1.93. Among key takeaways, National Bank said although Scotiabank beat its, and consensus, expectations, it has a "mixed view" of the quarter. On the positive side, National Bank said the Canadian P&C business delivered its best quarter in a long time, an important "deliverable" vis-a-vis Scotiabank's double-digit EPS growth target for the year. But on the negative side, National Bank said Capital Markets results missed consensus expectations and the bank's guidance range. More importantly, it added, credit losses were higher than expected, which resulted in the adoption of more conservative second half credit performance guidance. National Bank has kept a sector-perform rating and C$106 target on Scotiabank's shares.Still on credit stress in Canada, the National Bank Economics and Strategy Group noted total debt in insolvency reached its highest level since the 2009 financial crisis in the first quarter, according to data from Equifax. Economists Daren King and Matthieu Arseneau said this increase may seem alarming and raises concerns about the financial health of Canadian households. But, they asked, is the situation really as concerning as it seems?To gain a clearer picture, the National Bank duo analyzed data from the Office of the Superintendent of Bankruptcy, which tracks the total number of insolvency filings (bankruptcies and consumer proposals) across the country. They noted this data also shows that the number of insolvencies reached its highest level since the financial crisis in the first quarter. However, King and Arseneau said, two adjustments are necessary to correctly interpret the trend in insolvencies. The first concerns seasonality, since the first half of the year is historically associated with a higher volume of insolvencies. The second involves accounting for the strong population growth observed since 2009, as the Canadian population has increased by approximately 25% over this period.According to the pair, once the data is seasonally adjusted and expressed on a per capita basis, the insolvency rate remains well below the peak reached in the wake of the financial crisis and is even below its pre-pandemic level of 2019. They said the upward trend observed since 2022 therefore reflects a normalization from an exceptionally low pandemic trough rather than a widespread breakdown in household credit. This does not mean, however, that the situation should be downplayed, they added."The rise in the insolvency rate over the past year reflects a more fragile labour market, high interest rates, and a still-high cost of living, particularly for housing, food, and energy, which continue to put pressure on many households. However, the data does not support the narrative of systemic credit risk suggested by some media headlines. The most accurate interpretation remains more nuanced: financial strains are increasing, but their magnitude remains moderate by historical standards for now," King and Arseneau said.Of commodities, West Texas Intermediate crude oil plunged 5.6% on expectations the United States and Iran are nearing a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock. WTI crude oil for July delivery closed down US$5.21 to settle at US$88.68 per barrel, the lowest since April 20, while July Brent oil was down US$5.30 to US$94.28.Also, gold fell to a two-month low, even as the dollar dipped and oil prices weakened ahead of an expected peace deal to end the war on Iran, easing inflation worries. Gold for July delivery was down US$52.60 to US$4,482.40 per ounce, the lowest since March 26.

TSX Closer: The Index Falls From a Record Close Ahead of Canada's Banks Earnings Season

The resources-heavy Toronto Stock Exchange closed lower on Tuesday, falling off the record high set a day earlier on some profit taking and weaker commodity prices, while nagging economic concerns continue to weigh, with Canada's big banks facing rising insolvencies amid a weak housing market and National Bank saying Ottawa's trade-diversification target has a scale problem.The S&P/TSX Composite Index fell 177.02 points, or 0.5%, to 34,653.87. Most sectors were higher, led by the Battery Metals Index, up 5.5%, and Base Metals, up 2%, despite a lower gold price. Decliners were led by Info Tech, down 1.6%, and Health Care, down 1.3%.Financials was also down 0.5% ahead of the start of bank earnings season on Wednesday.Profits at Canada's largest banks are expected to have increased despite trade tensions, the Middle East conflict and broader economic uncertainty, but now face tougher tests as more consumers struggle to pay debts and a subdued housing market weighs on their core domestic business, according to a Reuters preview.The big banks; Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO), which together control more than 90% of the market, are expected to report strong second-quarter earnings starting on Wednesday, helped by trading revenue and their capital markets businesses, Reuters said."Banks have been beating expectations consistently for the past two years, With credit losses stubbornly elevated and margin expansion potentially stalling this quarter, the onus falls on the capital markets business to deliver, yet again," National Bank analyst Gabriel Dechaine is cited as saying.On the economy, National Bank said Statistics Canada's 2025 goods exporter data underscore the scale problem embedded in Ottawa's ambition to double non-U.S. exports within the next decade. The bank cited a chart that shows Canada counts nearly 48,000 goods exporting enterprises, but 82% of them employ fewer than 50 workers despite accounting for only 14.3% of total goods exports, while firms with 500 or more employees represent a tiny fraction of exporters but close to 60% of export value."This is not a marginal complication. Diversification is not simply a matter of redirecting shipments away from the U.S. market; it requires financing, compliance capacity, distribution networks, foreign-market intelligence, currency-risk management and the ability to withstand a long sales cycle before new relationships become profitable," National Bank said."For smaller firms, the constraint is structural because many are embedded in North American supply chains built around proximity, recurring customer relationships, integrated logistics and production specifications that are not easily replicated overseas."National Bank added: "The irony is that Ottawa's target may be easier to meet in aggregate than in substance. Canada can raise non-U.S. export values through commodities and other scale-intensive sectors where global demand is deep and output is more readily redirected across markets. But that path does less for the employment-intensive parts of the export base, where supply-chain links are stickier and diversification costs are proportionally higher. The result is a policy tension that could be masked by headline GDP. A resource-led export pivot may improve the arithmetic of diversification while smaller exporters face higher costs, thinner margins and greater risk of lost capacity. If building scale is part of the desired outcome, then trade policy cannot be separated from the domestic incentives that shape firm size, including the small-business tax kink highlighted in our MCIA/RBI work."Of commodities, gold edged lower by midafternoon Tuesday even as the dollar and yields fell as fresh U.S. strikes on Iran heightened concerns over the progress of peace talks between the two countries. Gold for July delivery was down US$16.90 to US$4,539.50 per ounce.Also, West Texas Intermediate crude oil closed lower on uncertainty around geopolitical tensions across the Middle East. WTI crude oil for July delivery closed down US$2.71 to settle at US$93.89 per barrel, while July Brent oil was last seen up US$3.40 to US$99.54.

TD Launching Agentic AI to "Transform Real Estate Secured Lending from End to End"

TD Bank Group (TD.TO, TD) launched Thursday its first agentic AI model to automate and streamline the application process for mortgages and Home Equity Lines of Credit (HELOC). This is the first step the bank is taking to leverage agentic AI to begin an end-to-end transformation of its Real Estate Secured Lending (RESL) operations, it added.

TD Launching Agentic AI to "Transform Real Estate Secured Lending from End to End"

Canadian Banks Still Priced For Positive EPS Surprises, National Bank Says in a Q2 Preview

Bank stocks are up 13% so far this year, outperforming the S&P/TSX by 550 basis points, notes National Bank in its second-quarter earnings preview of the sector.Analyst Gabriel Dechaine writes that since the end of the first-quarter reporting season, Canadian banks have outperformed the market by 800 bps."Betting against the banks has been unwise, with them consistently beating expectations over the past two years," he warns, adding that, trading at 14x on forward EPS, the group is priced for positive EPS surprises or revisions. Barring a margin or credit surprise, the onus falls on the Capital Markets to deliver this outcome, which isn't impossible considering several favorable market conditions.Dechaine's top picks are Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO).The U.S. loan growth factor would also be supportive of BMO (BMO.TO), considering the importance of its U.S. P&C segment's top-line expansion towards achieving the 12% ROE mark sometime in 2027, Dechaine adds.Price: $251.72, Change: $-0.71, Percent Change: -0.28%