Strong Financial Performance: TD Bank reported Q3 2025 earnings of CAD 3.9 billion, with an earnings per share (EPS) of CAD 2.20, representing a 10% year-over-year (YOY) revenue growth driven by robust fee and trading income as well as growth in Canadian Personal and Commercial Banking. This quarter marks a continued trend of positive operating leverage as revenue growth outpaced expense increases.

Credit Quality and Provisions: Impaired provisions for credit losses (PCLs) decreased quarter-over-quarter, reflecting strong credit performance. However, TD added almost CAD 600 million in reserves year-to-date to account for policy and trade uncertainties. The bank expects fiscal 2025 PCL results to fall within a range of 45 to 55 basis points, indicating prudent risk management amid economic uncertainty.

U.S. AML Remediation Progress: The bank has made significant strides in its U.S. AML remediation program, achieving numerous milestones and implementing new machine learning tools for transaction monitoring. The majority of management actions are expected to be completed by the end of 2025, though ongoing monitoring by regulators may continue for years thereafter, which could impact growth prospects.