TD Bank’s Q1 Earnings Hold Steady as It Prepares for Future Growth
TD Bank Group has reported flat first-quarter earnings, as the bank remains focused on its ongoing strategic restructuring and anti-money laundering (AML) compliance reforms.
CEO Raymond Chun, who took the helm in February following TD’s US$3.1 billion settlement related to money-laundering deficiencies, reaffirmed the bank’s commitment to operational improvements and long-term growth.
“The strategic review is advancing as planned,” Chun said. “We are identifying significant opportunities to restructure operations, reduce costs, and improve processes.”
Key Financial Highlights for Q1 2025
Net Income: $2.79 billion, compared to $2.82 billion in Q1 2024
Revenue: $14.05 billion, up from $13.71 billion last year
Provision for Credit Losses: $1.21 billion, up from $1 billion in Q1 2024
Per Share Earnings: $1.55 per diluted share, unchanged from last year
Adjusted Earnings: $2.02 per diluted share, slightly up from $2.00
TD’s financial performance reflects the impact of heightened expenses, with a 12% increase in adjusted costs attributed to governance and control investments related to AML compliance.
In a major strategic shift, TD recently announced the sale of its full stake in The Charles Schwab Corp., generating approximately $20 billion. Of this:
$8 billion will go toward share buybacks
The remaining funds will support business expansion and operational efficiency
In addition, the bank is actively reducing its U.S. assets, having already cut them by 10%, including the repayment of US$25 billion in borrowings and the planned sale of a US$9 billion mortgage portfolio.
Chun emphasized that cost reduction remains a key priority, even as TD continues to invest in its core operations.
“We are going deep to rightsize our cost base,” Chun said. “Our focus is on entering 2026 with a stronger, more efficient bank.”
Despite the ongoing regulatory challenges, analysts remain optimistic about TD’s future. Jefferies analyst John Aiken noted that while expenses remain elevated, profitability is improving, and the restructuring efforts have not significantly impacted earnings.