Toronto-Dominion Bank: 2Q26 EPS Review: Ontrack to potentially exceed its 2026 outlook

研报英文原文证据摘录

Toronto-Dominion Bank: 2Q26 EPS Review: Ontrack to potentially exceed its 2026 outlook

Equity Research

Canada & Latin America Banks

29 May 2026

Toronto-Dominion Bank

2Q26 EPS Review: Ontrack to

potentially exceed its 2026 outlook

Adjusted EPS exceeded consensus on better-than-expected TD.TO/TD CT UNDERWEIGHT

NII and PCLs while fee income was a touch light and expenses Unchanged

Canada & Latin America

were slightly higher than anticipated. Credit quality improved Banks POSITIVE

Unchanged

with GILs down 6% and formations 18% lower. CET1 ratio Price Target CAD 140.00

raised 4% from CAD 135.00declined 20bps to 14.3% with a buyback of 19mn shares.

Price (28-May-26) CAD 156.18

Potential Upside/Downside -10.4%

Source: Bloomberg, Barclays Research

Executive Summary

Market Cap (CAD mn) 258660Bottom line: After adjusting for a number of items, EPS was ahead of expectations on better-

Shares Outstanding (mn) 1656.17than-expected NII and PCLs while fee income was a touch light and expenses were slightly

Free Float (%) 95.44higher than anticipated. For 2026, TD noted its ontrack to outperform guidance for ~13% ROE,

52 Wk Avg Daily Volume (mn) 8.26-8% adj. EPS growth, 3-4% adj. expense growth, positive operating leverage, and a 40-50bps

Dividend Yield (%) 2.87PCL ratio with a 13%+ CET1 ratio. Near term, it sees NIM in its Canadian Personal & Commercial

Return on Equity TTM (%) 12.59Banking segment to be relatively stable q-o-q in 3Q26 with NIM in the US moderately increasing

Current BVPS (CAD) 68.21in 3Q26. In addition, it is continuing to target C$2.0bn-C$2.5bn from cost savings initiatives over

Source: Bloomberg

the medium term.

Results: TD reported EPS of C$2.43 in 2Q26. Adjusted for several one-time items, EPS was Price Performance Exchange-TOR

C$2.38. Consensus was C$2.26.