TD Bank posts record adjusted profit of $4.7 billion as U.S. retail arm stabilizes

Toronto-Dominion Bank Group, Canada’s second-largest lender by assets, reported fiscal third-quarter 2026 results for the quarter ended July 31, 2026, posting record adjusted net income of $4.7 billion, up 21% from the same period a year earlier. Reported net income came in at $4.6 billion. Reported diluted earnings per share were $2.74, up from $1.89 a year earlier, while adjusted diluted EPS rose to $2.77 from $2.20.

The record profit lands roughly two years after TD pleaded guilty to U.S. anti-money-laundering violations in 2024 and paid approximately $3 billion in penalties to U.S. regulators, a settlement that came with an asset cap restricting growth at its U.S. retail banking operations. That cap has forced TD to lean more heavily on its Canadian retail bank, wealth management, and wholesale banking segments for growth while its U.S. business works through the remediation required under its regulatory settlement.

The scale of the year-over-year improvement in adjusted net income — 21% — suggests the bank’s non-U.S.-retail segments have been carrying a disproportionate share of growth during the period its American operations remain constrained. TD has not disclosed a specific date for when the U.S. asset cap might be lifted, and its remediation progress under the 2024 settlement continues to be closely watched by both Canadian and U.S. regulators as a condition for any eventual relaxation of the restrictions on its American growth.

For a bank still operating under a regulator-imposed growth ceiling in its largest foreign market, a record adjusted profit quarter is a signal that the rest of its franchise is compensating for that constraint, though it does not by itself indicate when the U.S. restrictions will ease.