Toronto Dominion Bank

Strong overall results & shareholder return - EPS +21% YoY; ROE 14.4% (+200 bps YoY), reflecting positive operating leverage and momentum across businesses. - CET1 ratio 14.3% (down 26 bps QoQ). Capital strength remains a “competitive advantage.” - Dividend raised by $0.04 to $1.12/share. - Q2 share buyback: ~19 million shares. TD remains committed to the $7B buyback program; with prior repurchases, plans to return $15B in capital after completion.

Profit outlook & key full-year targets (forecasts / guidance) - Management reiterated ability to outperform FY2026 targets: 6%–8% EPS growth and 13% ROE (contingent on macro conditions). - Structural cost reduction: ahead of pace versus $2B–$2.5B structural costs (and they’ve already achieved the $900M goal for the year). - AI value: tracking well ahead of the $1B annualized value medium-term target; expecting $200M value from AI this year (already ~$145M delivered at halfway). - Expense guidance: for enterprise excluding specific items, guidance maintained: ~3%–4% expense growth ex FX & variable comp / strategic card portfolio effects. - US segment NIAT/earnings power: described as on track to meet and/or exceed Investor Day objectives.

Credit quality: stable PCLs, but with meaningful watch items (good + risks) - Total PCLs: 43 bps, flat QoQ and within guidance; impaired PCLs decreased $191M QoQ to $973M. - Allowance coverage: ~97 bps (management cites prudent reserving). - FY2026 PCL outlook remains 40–50 bps. - Consumer risk tone is mixed: management expects some migration/pressure (mainly <650 credit segment), but says credit is still in good shape given rates down ~275 bps from peak, stronger starting point vs pre-pandemic, wage growth, and government support. - Key downside risks acknowledged: trade/tariffs, Middle East conflict, and broader macro uncertainty led to a performing reserve build and incremental reserves this quarter.