The following is TD Group President and Chief Executive Officer Raymond Chun's letter to shareholders, which was published in the 2025 TD Annual Report. To read the full report, please visit here.
Dear shareholders,
I am very pleased to report on our progress in 2025, and to discuss the plans we are executing to build our Bank for the future.
Colleagues across TD came together in 2025 and delivered remarkable outcomes. We served our 28 million clients, built momentum across our businesses, created value for our shareholders and developed and launched a new strategy.
Financial performance and shareholder value
TD delivered strong outcomes and created significant value during a year of change and strategic progress.
For fiscal 2025, we reported revenue of $67.78 billion, with adjusted revenue of $61.81 billion, a 9% increase over the previous year. Reported earnings were $20.54 billion, with adjusted earnings up 5% year-over-year to $15.03 billion.
We also took decisive action to create value for our shareholders. In February, we sold our US$15-billion stake in The Charles Schwab Corporation for a significant gain. We returned a large part of the proceeds directly to shareholders by initiating an $8-billion stock buy-back, which we expect to complete in the first quarter of fiscal 2026.
Even with this significant return of capital to shareholders, we ended the year a very well-capitalized Bank, with a CET1 ratio of 14.7%, well above regulatory requirements. In September, we announced plans, subject to regulatory approval, to initiate a new stock buy-back of $6 billion–$7 billion in fiscal 2026, which would return almost all the proceeds of the Schwab sale to shareholders.
As we shared at our Investor Day in September, we expect earnings growth to accelerate over the medium-term. We have moved from an annual dividend review cycle to a semi-annual cycle to support alignment of shareholder return with earnings growth. In December, we announced a 3-cent dividend increase, bringing our quarterly dividend to $1.08 per share, reflecting confidence in TD's future growth and earnings power.
Throughout 2025, we remained sharply focused on our U.S. anti-money laundering (AML) remediation program. We achieved several important milestones this year and have a clear roadmap for the work ahead. This remains our top priority.
We also took important steps to restructure our U.S. balance sheet, exit non-core businesses and create significant capacity to serve our clients, compete, and grow in the U.S. under the asset limitation.
When I look back on the year, I am proud of what we accomplished together.
We are building our future on a very strong foundation
Early in the fiscal year, we launched a comprehensive strategic review of our business. We examined every aspect of our Bank, competitive position, use of capital and financial performance. This critical exercise confirmed our strengths, identified our opportunities and revealed where we need to change or improve.
There is no question we are building our future from a position of strength. We have a powerful $2-trillion balance sheet, diversified businesses, clear leadership in Canada and important scale in the U.S.
A Canadian leader with a powerful brand and unmatched reach
In Canada, we operate the country's premier retail banking franchise. We serve one in three Canadians, have primary banking leadership, industry-leading products and services, and run the country's second-largest business bank.
In Wealth Management, we have Canada's #1 direct investing platform, the fastest-growing private wealth management business and the #1 institutional asset manager.
TD Insurance continues to disrupt the market and is the #1 direct-to-consumer insurer in Canada, while working to set the standard for digital and artificial intelligence (AI) leadership in the insurance industry.
With Canada's most valuable brand, a growing client base and over 8 million active mobile users, we are poised for accelerated growth.
TD has a long heritage in Canada, going back more than 170 years. We are a leading employer, with almost 70,000 colleagues working in branches, offices, trading floors and innovation hubs across the country. We proudly support economic growth, help families and businesses achieve their goals and finance projects and programs that are critical to Canada's future. Working with community partners, we also contributed over $115 million in 2025 to help Canadians clear new pathways to economic inclusion and live better lives.
We will continue to build on this legacy of leadership.
A top-10 American bank with scale and deep community connections
In the United States, we have built a top-10 bank in just twenty years. TD serves more than 10 million American households, businesses and entrepreneurs, helping them navigate complexity and achieve their goals.
TD has planted deep roots in communities across the eastern seaboard over the past two decades, with almost 30,000 colleagues across 15 states and Washington D.C., and leading market share in some of the country's largest metro areas.
Through our U.S. Community Investment Plan, we are delivering US$20 billion in local investment, lending, financial education, philanthropy and banking access across underserved communities throughout our U.S. footprint. In 2025, we also contributed over US$30 million to not-for-profit organizations that support the communities where we live and work.
We will continue to invest in our clients, our business and our communities as we extend our presence in one of the world's largest banking markets.
TD Securities is growing strong in Canada, the U.S. and globally
TD Securities built strong momentum throughout 2025, demonstrating the power of our integrated, full-service North American platform. With the integration of TD Cowen, we now have a full suite of capabilities to serve clients in the U.S., including one of the top research teams in the market. We are growing mandates and winning more business with our clients in Canada, the U.S. and globally.
TD Securities is well on its way to becoming a top-10 North American dealer with global reach.
Shaping TD's future
At our Investor Day, we laid out a detailed plan to mobilize these undeniable strengths and advantages to accelerate growth, enhance financial performance and create shareholder value.
Deeper Relationships
Our strategy starts with the 28 million clients who have placed their trust in TD. Our greatest growth opportunity, in every one of our businesses, is to serve more of their needs.
We are making significant investments to seize this opportunity. Across TD, we're deploying frontline colleagues who can bring more of the Bank to our clients. This includes 1,200 wealth advisors in Canada and an additional 500 in the U.S., more than 800 frontline business bankers and 1,000 mortgage and investment specialists. We're also making critical investments in technology, data and AI to make it easier to bank digitally and enhance the client experience.
Through our early investments in 2025, we are already seeing rising product penetration and cross-business referrals.
Simpler & Faster
Our clients' needs are shifting, competition is intensifying, and the pace of change is accelerating. In this environment, speed matters, and will be a competitive advantage for TD moving forward.
We are speeding up the Bank with AI-powered virtual assistants, loan auto-adjudication, data-driven card pre-approvals and internal process automation.
AI is at the heart of much of this innovation and we're moving with speed to harness its power. We're organizing our data in the cloud and deploying AI across TD to drive our growth and our performance. Over 2,500 AI and data scientists, engineers and specialists are building new applications to create value for our clients and the Bank.
We're also taking concrete steps to speed up how we run our Bank. We're stripping out complexity, simplifying our operating model and moving decision-rights closer to our clients.
Disciplined Execution
To enable our strategy, we're bringing disciplined execution to our work. We are relentlessly prioritizing and sharpening our focus to run our Bank with precision and efficiency.
As part of this effort, we're structurally resetting our cost base to deliver $2 billion–$2.5 billion in cost savings over the medium term. This is a Bank-wide effort, and includes back-office automation, significant procurement savings and an end-to-end redesign of our 20 most expensive processes.
These savings will enhance performance and allow us to further accelerate investments that will drive growth.
I look forward to updating you on our progress over the coming months and years as we execute on this strategy and shape TD's future.
Reimagine what banking can be
As we look ahead, we know that constant change will continue to shape our environment and impact our clients, colleagues and communities. We can't simply adapt to the change; we want to lead it and help shape the future of our industry.
We are embracing a new purpose: to Reimagine what banking can be, for the clients we serve, the colleagues dedicated to their success, and across communities we call home.
Unified around a shared purpose, we will challenge ourselves to seek new ways to create value and support all those who rely on TD.
Remarkably Human. Refreshingly Simple.
As we reimagine our future, one thing will never change: our clients will always remain at the heart of our Bank.
In an increasingly complex, uncertain and mobile-first world, TD is making a new promise to our clients. We will offer Remarkably Human and Refreshingly Simple experiences in every engagement, every product, and every swipe.
As we deliver on this promise, we will enable our clients to thrive, and we will set a new standard for client experience.
Culture – Who we Are and How we Lead
Over the last several months, we also carefully looked at our culture.
TD's winning culture has helped us build a formidable business, recruit and retain the best talent and earn trust with millions of clients.
As we shape our future, we must also strengthen our culture. This includes accountability at every level, curiosity in every colleague and the courage to lead both our Bank and our industry into the future.
In late October, we gathered TD's top leaders from around the world for a senior management conference where we outlined our new direction. We candidly discussed the change we need to drive and committed as a leadership team to deliver the outcomes we promised. We also unified around shared principles, clearly defining Who we Are and How we Lead to strengthen our culture and position TD and our colleagues to win today and well into the future.
Thank you
Without question, 2025 was a pivotal year for our Bank.
I am most proud of the tremendous commitment of our more than 100,000 colleagues. They rose to the occasion and delivered for our clients and each other through an unprecedented period of change. I thank them for their dedication to our clients and the Bank.
I also thank our millions of clients for placing their trust in TD, and you, our shareholders, for your continued support.
TD is moving forward with confidence to build our Bank for the future. I'm energized by our progress, and excited to seize the opportunities ahead.
Raymond Chun