Toronto-Dominion Bank Exceeds Q3 Earnings Expectations, Shares Rise 3.1% in Premarket Trading

Toronto-Dominion Bank's Q3 earnings exceeded expectations, with strong results in Canadian Personal & Commercial Banking and U.S. Retail sectors contributing to the outcome. The adjusted EPS was C$2.20, surpassing the average estimate of C$2.03. Analysts forecast an average target price of $74.98, implying a 1.52% downside from the current price of $76.14. Despite this, the stock maintains an "Outperform" recommendation.

Toronto-Dominion Bank Group (TD) reported robust third-quarter earnings, surpassing analyst expectations. The bank's adjusted earnings per share (EPS) of C$2.20 exceeded the average estimate of C$2.03. The stock, currently trading at C$76.14, faces a downside of 1.52% with an average target price of C$74.98, but maintains an "Outperform" recommendation [1].

Key drivers of the strong performance were the Canadian Personal and Commercial Banking (P&C) sector and the U.S. Retail division. Canadian P&C delivered record revenue, earnings, deposit, and loan volumes, with net income reaching C$1,953 million, an increase of 4% year-over-year [1]. U.S. Retail also contributed significantly, reporting net income of C$760 million, a 337% increase from the previous year, primarily due to higher revenue and the impact of charges related to previous investigations [1].

The bank's Wholesale Banking sector also performed well, with net income rising 26% year-over-year to C$398 million. TD Securities was awarded Canada's Best Bank for Debt Capital Markets by EuroMoney Awards for Excellence, further boosting the division's reputation [1].

TD's Common Equity Tier 1 Capital ratio remained strong at 14.8%, indicating a resilient financial position [1]. The bank's strategic partnership with Fiserv and advancements in digital transformation, such as the top-rated TD Insurance mobile app, underscore the bank's commitment to innovation and client experience enhancement [1].

The board of directors also saw changes, with Frank Pearn joining and John B. MacIntyre stepping into the role of Chair of the Board of Directors [1].

Overall, TD Bank Group's Q3 results demonstrate a resilient and diversified business model, positioning the bank well for future growth and market competition.

References:
[1] https://stories.td.com/ca/en/news/2025-08-28-td-bank-group-reports-third-quarter-2025-results