Net Interest Income (NII) Uplift

FY 2025

no prior guidance

USD 300‑500 million pretax " " " " " " "

no prior guidance

Restructuring Charges

FY 2025

no prior guidance

$600‑700 million pretax over the next several quarters " " " " " " "

no prior guidance

Cost Savings from Restructuring

FY 2025

no prior guidance

Approximately $100 million pretax in FY 2025 and annual run‑rate savings of $550‑650 million pretax " " " " " " "

no prior guidance

Expense Growth

FY 2025

5% to 7% "

Upper end of 5% to 7% range " " " "

raised

U.S. BSA/AML Remediation Costs

FY 2025

Approximately USD 500 million pretax " "

Approximately USD 500 million pretax " " " "

no change

Liquidity Coverage Ratio (LCR)

FY 2025

Expected to remain elevated "

Expected to normalize to 125%–135% " " " "

lowered

U.S. Retail NIM

FY 2025

Expected substantial expansion in Q2 2025 "

Expected substantial expansion in Q3 2025 " " " " " " "

no change

Canadian Personal & Commercial NIM

FY 2025

Expected to be relatively stable in Q2 2025 "

no prior guidance

no prior guidance

Provision for Credit Losses (PCL)

FY 2025

45 to 55 basis points "

no prior guidance

no prior guidance

Common Equity Tier 1 (CET1) Ratio

FY 2025

Increase by approximately 238 basis points in Q2 2025 "

no prior guidance

no prior guidance

Investment Portfolio Repositioning

In Q1 2025, TD discussed repositioning its investment portfolio by selling ~$19B notional bonds at an upfront loss of ~$1.1B pretax with expectations of an NII uplift of $300M–$500M. " " " Q3 2024 had no mention.

In Q2 2025, the discussion expanded with a sale of about ~$23B notional bonds at an upfront loss of ~$1.3B pretax and reaffirmed expectations of NII uplift at the upper end of the $300M–$500M range with a more robust outlook for margin expansion. " " "

Consistent emergence and increased scale. The topic, absent in Q3 2024, first appeared in Q1 2025 and continued into Q2 2025 with greater notional and more positive sentiment regarding future NII.

Business Restructuring and Non-Core Operations Wind-Down

In Q1 2025, restructuring was discussed as part of a broader strategic review including balance sheet optimization and portfolio rationalization. " " " In Q3 2024, the restructuring program was reported as completed with cost efficiencies realized. " "

In Q2 2025, the focus shifted to ongoing execution with detailed figures — including $163M restructuring charges this quarter, plans for $600–$700M total charges, and steps to wind down non-core U.S. operations such as the point-of-sale financing business. " " " " " " "

Recurring with execution evolution. The topic has been a consistent focus. Q3 2024 mentioned program completion, while Q1 2025 and Q2 2025 underscore ongoing execution and clearer cost-saving initiatives, reflecting a deeper execution risk as the bank refines its portfolio.

AML Remediation and Regulatory Investigations

In Q1 2025, AML remediation was flagged as a top priority with the appointment of a monitor and significant technology and process enhancements, along with notable remediation costs (~$86M in Q1). " " " " Q3 2024 emphasized heavy provisions (e.g. $2.6B provision) and structural cost increases. " " " "

In Q2 2025, executives expressed satisfaction with progress in U.S. AML remediation, highlighting advances in transaction monitoring, further technology enhancements, and steady spending (~$196M to date) while acknowledging ongoing expense pressures. " " "

Consistently challenging yet showing improved progress. The sentiment remains negative due to high costs and regulatory risk; however, Q2 2025 exhibits more positive commentary on remediation progress compared to the heavier negative tone and larger provisions seen in Q3 2024, while maintaining the priority seen in Q1 2025.

Macroeconomic Uncertainty and Credit Reserve Buildup

In Q1 2025, tariff and trade risks were emphasized with overlays and increased provisions (e.g., a $149M overlay, allowance increases reflecting PCL adjustments). " " " " Q3 2024 noted uncertainty stemming from geopolitical and market volatility with a $288M increase in allowances. " "

In Q2 2025, detailed discussion on tariff-driven uncertainty continued with explicit reserve buildup of $500M over two quarters, focused on business and government lending, and more precise forward-looking risk quantification. " " " " "

Recurring with enhanced risk quantification. Macroeconomic uncertainty remains a steady concern. While the basic risks identified in Q1 are sustained, Q2 2025 provides more detailed reserve allocation and scenario analysis, reinforcing the uncertainty without major shifts in overall sentiment.

U.S. Retail Banking Performance and NIM Expansion

In Q1 2025, U.S. Retail performance was described as modest with loan and deposit growth along with a NIM of 2.86% rising by 9 bps, driven partly by restructuring and liquidity normalization. " " " " Q3 2024 highlighted strong loan growth and steady margins. " " "

In Q2 2025, robust performance is underscored by six consecutive quarters of consumer deposit growth, significant loan growth in key areas, and a NIM expansion of 18 bps (3.04%), with positive views on future quarter improvements. " " " " "

Positive and strengthening. The segment remains a key driver. The trend from Q1 to Q2 shows improved momentum with a stronger NIM expansion and performance metrics, while Q3 2024 had consistently strong results previously; the focus now shifts more clearly toward future expansion prospects.

Canadian Mortgage and Banking Growth

In Q1 2025, growth was highlighted through initiatives such as RESL specialist integration and record revenue metrics, with deposits and loan growth in personal and commercial segments. " " Q3 2024 boasted record revenues and strong market share gains in RESL and deposits. " "

In Q2 2025, although the housing market faces headwinds (e.g., 9%-10% sales decline and inventory buildup), strong performance in proprietary channels (branch and mobile) and sequential increases in spot balances are noted alongside steady deposit and loan growth. " " " " "

Consistently strong yet contextually nuanced. While the overall growth story is recurring, Q2 2025 reflects contained challenges in the housing market balanced by strong proprietary channel performance. This suggests persistent growth with slight adjustments to market conditions compared to earlier robust periods.

Digital and Mobile Mortgage Channel Expansion

Not mentioned in Q1 2025 or Q3 2024; previous discussions centered around traditional RESL channels and mortgage specialist integration. " "

In Q2 2025, there is a clear new emphasis on expanding digital and mobile mortgage channels focused on speed, customer experience, and improved referral systems, reflecting a strategic evolution. " "

New emerging emphasis. This is a fresh focus in Q2 2025 not seen in prior periods, marking a strategic shift toward digital innovation to complement traditional channels and enhance customer experience.

Elevated Expense Growth and Operating Cost Pressures

Q1 2025 noted 12% year-over-year expense growth driven by variable compensation and increased governance costs with projections for moderation later in the year. " " " Q3 2024 attributed high single-digit adjusted expense growth to risk, control costs, and discrete litigation expenses. " " "

In Q2 2025, expenses increased by 12% year-over-year with detailed restructuring measures (e.g., $163M in charges this quarter and plans for $600–$700M total) along with targeted redeployment into digital, AI, and technology investments. " " "

Persistently high with ongoing restructuring. Cost pressures continue to be a recurring challenge. While the magnitude of expense growth remains similar, Q2 2025 provides more granularity on cost-reduction initiatives and future investment redeployments without significant relief in underlying operating cost pressures.

Wholesale Banking Performance

In Q1 2025, Wholesale Banking was characterized by record revenue, solid Global Markets performance, and higher PCLs with focused strategic growth in prime lending. " " Q3 2024 featured strong revenue growth (14% increase) and positive operating leverage despite higher PCLs. " " " "

In Q2 2025, while Wholesale Banking still delivered record revenue (e.g. $2.1B) and strong performance in trading activity, the discussion was less prominent compared to the retail segment, with an emphasis on measured performance amid higher related expenses and modest PCL increases. " " " "

Less emphasized in favor of retail focus. The performance remains solid but receives less top-line coverage in Q2 2025 compared to previous periods, indicating a strategic pivot or de-prioritization as management focuses more on retail and other growth drivers.

Strong Capital Position and Share Buyback Flexibility

In Q1 2025, TD highlighted strong capital metrics with a CET1 ratio of 13.1% (pro forma ~14.2% post-Schwab sale and buyback) and emphasized flexibility for an $8B share buyback as part of a strategic review. " " Q3 2024 stressed a conservative CET1 target (12–12.5%) and prudent repurchases. " " " "

In Q2 2025, the CET1 ratio improved to 14.9% (up 177 bps) benefiting from the Schwab share sale and despite share repurchases (30M shares), with continued commitment to an $8B NCIB and discussions on rightsizing portfolios for additional buyback flexibility. " " "

Sustained strength with minor adjustments. The bank remains well-capitalized with consistent emphasis on share buyback flexibility. Although the absolute CET1 figures vary across periods, the strategic narrative of capital strength driving future growth remains intact and slightly more optimistic in Q2 2025.