TD Bank Lifts Dividend After Record Quarter
Yahoo! Finance Canada reported Thursday that Toronto-Dominion Bank posted a second-quarter profit of $4.25 billion and raised its quarterly dividend, continuing a broader trend of Canadian lenders returning capital to shareholders.
The bank announced it will lift its per-share quarterly dividend to $1.12, up from $1.08 previously. The result covers the quarter ended April 30.
TD Bank Beats Estimates With Record Divisional Performance
On an adjusted basis, TD earned $2.38 per diluted share for the quarter. That came in ahead of the $2.26 per share consensus estimate compiled by LSEG Data and Analytics. Revenue for the period reached $15.80 billion.
Chief Executive Raymond Chun said in a statement that the bank delivered record second-quarter earnings in Canadian personal and commercial banking. He also cited all-time highs in wealth management, insurance, and wholesale banking. U.S. operations showed accelerating momentum, he added.
TD Bank Group’s provision for credit losses fell to $1.00 billion. That compared favourably with $1.34 billion in the same period a year earlier, reflecting improved credit conditions across its loan book.
A Year-Ago Comparison Worth Context
The year-over-year profit comparison requires some explanation. TD reported a profit of $11.13 billion in the second quarter of 2025, or $6.27 per diluted share. That figure was heavily inflated by proceeds from the sale of TD’s stake in Charles Schwab Corp. Stripping that out, the underlying adjusted profit of $1.97 per diluted share last year makes this quarter’s $2.38 a meaningful step forward.
Revenue also fell nominally from $22.94 billion a year ago, but that gap reflects the same one-time Schwab proceeds and does not represent organic deterioration.
Divisional Breakdown Shows Broad-Based Gains
Canadian personal and commercial banking generated net income of $1.93 billion, up from $1.67 billion in the prior-year quarter. Higher revenue and a smaller credit-loss provision drove that improvement.
U.S. banking was the standout turnaround story. The segment earned $813 million for the quarter, compared with just $120 million a year earlier, as the division continues to recover and rebuild after a period of regulatory scrutiny.
Wealth management and insurance contributed $837 million, rising from $707 million. Wholesale banking added $612 million, up from $419 million previously.
TD Bank trades on the Toronto Stock Exchange under the ticker TD. The TD Bank dividend increase places it alongside other large Canadian lenders that have recently moved to reward shareholders amid a more stable credit environment.
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