TD Bank Earnings Rise on Canada and Capital Markets
TD Bank earnings rose in Q3 2026 on record adjusted results and stronger capital markets revenue, likely supporting investor positioning in bank stocks.
KEY TAKEAWAYS
- Record adjusted net income of C$4.7 billion and adjusted EPS of C$2.77.
- Wholesale Banking capital markets revenue rose 25% year over year, driving overall revenue growth.
- CET1 capital ratio 14.3% and adjusted ROE 16.0% underscore capital strength.
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TD Bank Group reported third-quarter 2026 results on Aug. 27, 2026, with record adjusted earnings as revenue strengthened across Canadian personal and commercial banking and capital markets. Lower credit-loss provisions also supported the quarter.
Quarterly Results and Capital Strength
TD reported net income of C$4.6 billion, up from C$3.3 billion a year earlier, and diluted earnings per share of C$2.74. Adjusted net income reached a record C$4.7 billion, with adjusted diluted EPS of C$2.77. Revenue rose to C$16.9 billion from C$15.3 billion in the prior year.
The company’s provision for credit losses declined to C$917 million from C$971 million, supporting the adjusted results. The common equity tier 1 (CET1) capital ratio, a key regulatory measure of financial strength, stood at 14.3% at quarter-end. Adjusted return on equity (ROE) was 16.0%, compared with a reported ROE of 15.8%.
Growth in Canada and Capital Markets
Wholesale Banking delivered record capital markets revenue, pushing the division’s revenue 25% higher year over year. Canadian Personal and Commercial Banking revenue rose 5% to C$5.5 billion, driven by growth in deposits, loan volumes, and higher margins.
On an adjusted basis, U.S. Banking net income increased 12% year over year to about US$771 million. Wealth Management and Insurance net income rose 20% to C$841 million.
The company emphasized strong operating performance and capital strength, positioning these results as supportive of its fiscal 2026 earnings-growth and ROE targets. Management expects full-year credit losses near the low end of the prior 40–50 basis-point range if current conditions persist.
