The Toronto-Dominion Bank (TD): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to see exactly how a North American giant like The Toronto-Dominion Bank (TD) is structuring itself after a year of major tech investments and regulatory clean-up. Honestly, dissecting a bank with $2.1 trillion in assets and a 14.7% CET1 ratio requires looking beyond the quarterly report, so we've mapped out their entire 2025 Business Model Canvas, showing how they balance that scale with the heavy lift of U.S. BSA/AML remediation-a $507 million cost this fiscal year alone. It's a complex machine, but the blueprint is surprisingly clear. Dive in below to see their key partnerships, the value proposition driving their 'Unexpectedly Human Experience,' and the exact cost structure underpinning their push for $550M-$650M in annualized savings by 2026.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances The Toronto-Dominion Bank (TD) relies on to power its operations and growth as of late 2025. These aren't just vendor relationships; they are strategic integrations that directly impact service delivery and market positioning.

Google Cloud for multi-year data and technology infrastructure

The multi-year strategic relationship with Google Cloud, announced in April 2024, focuses on leveraging Google's infrastructure for data-driven technology solutions and accelerating application development. This partnership builds on an existing relationship where TD Securities Automated Trading (TDSAT), a Chicago-based subsidiary, uses Google Cloud infrastructure for fixed-income market modeling. Google Cloud's capabilities have reportedly helped grow TDSAT's trading volumes and portfolio size.

TD Cowen integration for mid-market corporate and sponsor relationships

The integration of TD Cowen continues to shape Wholesale Banking. Research output from this division provides market benchmarks. For instance, in the 2025 Extel Survey, TD Cowen advanced to #6 in U.S. Corporate Access, improving 3 positions YoY, and secured the #1 rank in the Healthcare sector. A related Human Capital Management global survey in late 2025 evaluated 4,670 respondents across various organization sizes, noting outlooks are most favorable for enterprise and midmarket organizations.

Here's a look at the scale of the market TD Cowen operates within, based on related industry estimates:

Metric	Value
Global HCM Software and Services TAM (Estimated)	Over US$180 billion
TD Cowen U.S. Corporate Access Rank (2025 Extel Survey)	#6
TD Cowen Healthcare Sector Rank (2025 Extel Survey)	#1
HCM Survey Respondents (2025)	4,670

Fiserv for enhancing merchant solutions and digital edge

The strategic relationship with Fiserv, finalized in July 2025, modernizes TD Merchant Solutions in Canada. As part of this, Fiserv is acquiring a select portfolio of TD's merchant processing business. This transfer involves approximately 3,400 TDMS merchant group contracts spanning 30,000 merchant locations, all migrating to Fiserv's processing system and Clover platform. Fiserv's own reported financials for Q2 2025 show GAAP revenue of $5.52 billion (an 8% year-over-year rise) and GAAP earnings per share of $1.86 (up 22% year-over-year). For the first half of 2025, Fiserv's GAAP revenue reached $10.65 billion, marking a 7% increase year-on-year.

TD Innovation Partners (TDIP) for banking technology entrepreneurs

TD Innovation Partners (TDIP), launched in June 2024, is positioned to serve the technology sector, competing in a space where RBCx launched in 2021. TD leverages its existing base to support these ventures, reporting over a million business banking customers across Canada as of mid-2024. TDIP offers a full suite of services, including:

• Banking and lending products
• Private banking solutions
• Investment products
• Cross-border banking services with the U.S.

Strategic card program partners for U.S. consumer lending

Partnerships in U.S. consumer lending are central to the U.S. Retail segment's performance. The structure involves sharing risk and rewards with retailer program partners. The performance metrics for the U.S. strategic card portfolio as of Q4 2025 show strong growth:

• U.S. bank card balances increased 14% year-over-year.
• Account acquisition was the strongest in 7 years.
• Fraud losses for Fiscal 2025 were down 26% year-over-year.

The bank calculates its Pre-Provision Pre-Credit Loss (PTPP) metric by grossing up revenue net of insurance service expense by the retailer program partners' share of Provision for Credit Losses (PCL) for this portfolio. For example, a prior agreement with Target Corporation for co-branded cards was extended until March 2025.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Key Activities

You're looking at the core engine of The Toronto-Dominion Bank (TD) as it stands at the close of fiscal 2025. The key activities are centered on managing its massive North American footprint while aggressively tackling compliance remediation and embedding new technology for efficiency.

Retail and Commercial Lending/Deposit-taking across North America

The activity of serving customers through its Canadian and U.S. retail networks remains foundational. In the Canadian Personal and Commercial Banking segment, you saw record volumes in the final quarter. For fiscal Q4 2025, net income for this segment reached C$1.87 billion, a 2% year-over-year gain.

The growth in the core deposit and loan book shows the scale of this activity:

• Average deposits rose 4% year-over-year in Q4 2025.
• Personal deposits grew 3%, while business deposits grew 5%.
• Average loan volumes increased 5% year-over-year overall.
• Personal loan volumes grew 5%, and business loan volumes grew 6%.

In the U.S. Retail segment, the focus was on operating within the regulatory asset cap while driving profitability. Net income in the U.S. Retail segment climbed 31% year-over-year to $719 million in Q4 2025, when excluding the contribution from the Charles Schwab investment.

The balance sheet reshaping activity directly impacts this segment's capacity to lend:

Balance Sheet Activity (Q4 2025)	Amount	Context
Total Assets	$382 billion	At the end of the fiscal quarter.
Non-core Loans Runoff	$5 billion	Reduced during the quarter to manage the asset cap.
Investments Sold (Notional)	$7 billion	Part of the balance sheet restructuring.

Executing U.S. BSA/AML remediation and governance enhancements

This is a critical, resource-intensive activity following the historic penalties last year. The Toronto-Dominion Bank Group completed the majority of its U.S. management remediation actions in fiscal 2025, though work is planned to continue through 2026 and 2027 for validation and sustainability.

The financial commitment to this activity is significant:

• Total U.S. BSA/AML remediation and governance/control investments for fiscal 2025 were $507 million.
• The bank expects to spend a similar amount in fiscal 2026.

The bank is actively deploying technology as part of this governance enhancement, including machine learning enhancements to its transaction monitoring system.

Developing and deploying AI/machine learning for customer insights and risk

The Toronto-Dominion Bank is using AI/machine learning as a core activity to drive both efficiency and revenue generation. In fiscal 2025, the bank implemented approximately 75 AI use cases across areas like loan underwriting, customer acquisition, and risk management.

The quantifiable results from these deployments are clear:

AI/ML Metric	Value Achieved in 2025	Projected Value in 2026
Value Generated (CAD)	$170 million	$200 million incremental value expected.
Cross-selling Boost	Up to 30%	Via the internally developed TD AI Prism platform.
Fraud Losses Decline (YoY)	26%	Driven by modernization investments across data, systems, and processes.

Honestly, the impact on customer service is also measurable; one of the first generative AI use cases, a virtual assistant, has led to a 12% reduction in calls handed off to support teams.

Wholesale Banking activities, including capital markets and advisory services

The Wholesale Banking segment, which includes TD Securities and TD Cowen, is a key driver of fee and trading income. For Q4 2025, revenue for this segment climbed 24% year-over-year to C$2.2 billion, fueled by broad-based strength across Global Markets and Corporate and Investment Banking.

Recognition for these activities includes:

• TD Securities being named Canada's Best FX Bank at the 2025 Euromoney Foreign Exchange Awards.
• TD Cowen advancing to No.6 in the U.S. Corporate Access 2025 Extel Survey.

The bank is actively using this platform for advisory services, such as acting across advisory and financing products for National Fuel Gas's recent acquisition of the CenterPoint business.

Strategic restructuring to achieve $550M-$650M in annualized savings by 2026

The Toronto-Dominion Bank is executing a strategic review that includes a restructuring program designed to cut its cost base and improve efficiency. This effort involves an approximate 3% workforce reduction.

Here's the quick math on the savings target versus what's been realized so far:

• Expected total pre-tax fully realized annual program savings: Approximately $750 million.
• Savings generated in fiscal 2025: Approximately C$100 million pre-tax.
• Total expected restructuring charges pre-tax: About $825 million.

What this estimate hides is that the restructuring charges incurred in Q4 2025 alone were $190 million pre-tax, which is part of the total expected charges. This activity is intended to help the bank deliver on its medium-term target of a 13% Return on Equity (ROE) through fiscal 2026.

Finance: draft 13-week cash view by Friday.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Key Resources

You're looking at the core assets that power The Toronto-Dominion Bank (TD) as of late 2025. These aren't just line items; they're the engines of the business, from massive balance sheet strength to proprietary technology.

The sheer scale of The Toronto-Dominion Bank (TD) is anchored by its balance sheet. As of October 31, 2025, the firm reported total assets of $2.1 trillion. This places The Toronto-Dominion Bank (TD) as the sixth largest bank in North America by assets.

Financial strength is clearly a priority. The capital base remains robust, evidenced by the Common Equity Tier 1 (CET1) Capital ratio standing at 14.7% for the fourth quarter of 2025. This level of capital provides a significant buffer against unexpected economic shifts.

The physical footprint, while being actively optimized, remains a key differentiator, especially in the U.S. retail space. The strategy is shifting, though; The Toronto-Dominion Bank (TD) is transforming branches from transaction hubs to high-value advice centers. Still, the physical network is extensive:

• Over 1,060 branches in Canada, serving more than 11 million customers.
• Over 1,171 branches in the U.S. across 16 states and the District of Columbia.
• The U.S. Retail Bank serves over 10 million customers across its footprint.

The technology stack is rapidly becoming a central asset. The Toronto-Dominion Bank (TD) unveiled TD AI Prism in mid-2025, a proprietary artificial intelligence foundation model built entirely in-house. This platform is designed to consolidate siloed analytics into a single predictive engine, capable of processing up to 100 times more data variables than prior systems to anticipate customer needs. This innovation stems from research at Layer 6, The Toronto-Dominion Bank (TD)'s AI research and development center.

Digital engagement is also a critical resource, underpinning the shift in branch strategy. The bank reports having over 13 million mobile active users across Canada and the U.S. as of late 2025. Furthermore, The Toronto-Dominion Bank (TD) ranks among the world's leading online financial services firms, with a total of over 18 million active online and mobile customers reported in early December 2025.

Here's a quick look at the scale of these primary resources:

Resource Metric	Value (As of Late 2025)	Context/Date
Total Assets	$2.1 trillion	October 31, 2025
Total Assets (Specific)	$2,094.6 billion	Q4 2025
CET1 Capital Ratio	14.7%	Q4 2025
Mobile Active Users (CA/US)	13 million+	Reported
Total Digital Customers (Online/Mobile)	18 million+	Early December 2025
Proprietary AI Platform	TD AI Prism	Unveiled June 2025
AI Data Processing Capacity	100x more data variables	Compared to previous systems

The Toronto-Dominion Bank (TD) is actively managing its physical footprint, planning to reduce its U.S. branch presence by 10%, which includes a target of closing 51 branches in 2026. This optimization frees up capital to invest in digital assets like TD AI Prism and enhance the remaining physical locations. If onboarding takes 14+ days, churn risk rises, but the digital user base suggests strong adoption of self-service channels.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Value Propositions

You're building a financial institution that aims to be indispensable across North America, which means delivering on scale, convenience, and deep, personalized service. Here are the concrete numbers that define The Toronto-Dominion Bank (TD)'s value propositions as of late 2025.

The Unexpectedly Human Experience: A connected customer experience (CCX) across all channels

The focus here is on making every interaction feel personal and efficient, using technology to bridge the gap, not widen it. This is about delivering on the promise of humanity in banking.

• TD Bank deployed the TD AI Prism platform internally, which predicts consumer needs and boosts cross-selling by up to 30%.
• The bank implemented approximately 75 AI use cases in fiscal 2025, which generated $170 million in value.
• TD Bank was recognized by Celent as a 2025 Model Bank for Customer Centered Innovation for its TD Small Business Dashboard and Tap to Pay on iPhone solutions.
• Canadian Personal Banking achieved record year-to-date digital sales in personal chequing, savings, and cards combined in Q3 2025.
• TD serves over 17 million active online and mobile customers across its global operations as of January 31, 2025.
• In Canada, TD has over 8 million active mobile users.

North American Scale and Convenience: Operating as America's Most Convenient Bank

This value proposition rests on sheer footprint and accessibility across the continent. You can find The Toronto-Dominion Bank almost anywhere you need them.

Metric	Value (as of early/mid-2025)
North American Ranking by Assets	Sixth largest bank in North America
Total Customers Served (North America)	Over 27.9 million
U.S. Retail Customers Served	Over 10 million (in stores from Maine to Florida)
Total Assets	$2.09 trillion (as of January 31, 2025)
Canadian Branches & Offices	2,197
Total ATMs	5,949
Brand Value (Brand Finance Banking 500 2025)	USD17.4 billion (for the Canadian entity)

Integrated Financial Solutions: Seamless cross-referrals between banking, wealth, and insurance

The goal is to ensure that when a client needs wealth advice or insurance, they are seamlessly connected within The Toronto-Dominion Bank ecosystem. This integration is showing up in the results.

• The Wealth Management and Insurance segments posted net income of $699 million in Q4 2025, an increase of $350 million year-over-year.
• TD Advice recorded strong asset growth in Financial Planning, showing clients leverage integrated wealth and insurance solutions.
• Cross-referrals between personal banking, wealth management, and insurance are noted as continuing to drive revenue.
• TD employs 1,200 wealth advisors in Canada and an additional 500 in the U.S.
• The Toronto-Dominion Bank serves approximately 6 million customers across the wealth and insurance businesses in Canada.

Specialized Wholesale Expertise: Full-service capital markets and advisory via TD Securities and TD Cowen

For institutional and corporate clients, The Toronto-Dominion Bank offers deep capital markets capabilities, evidenced by recent performance and industry recognition.

Metric/Award	TD Securities / TD Cowen Data (Q4 2025)
Wholesale Banking Revenue (Q4 Adjusted)	Record $2,200 million (up 24% year-over-year)
Wholesale Banking Net Income (Q4 Adjusted)	Record $529 million (up 77% year-over-year)
TD Cowen U.S. Corporate Access Ranking (Extel Survey 2025)	Advanced to No.6
TD Cowen Sector Ranking (Extel Survey 2025)	No.1 in the Healthcare sector
TD Securities Award (2025 Euromoney Awards)	Named Canada's Best FX Bank
TD Cowen Survey Sample Size (HCM 2025)	4,670 respondents evaluated

Digital Innovation: Tools like the TD Small Business Dashboard and Tap to Pay on iPhone

Digital tools are not just for efficiency; they are a core part of the value proposition, especially for business clients seeking streamlined operations.

• The TD Small Business Dashboard and Tap to Pay on iPhone capabilities earned The Toronto-Dominion Bank the Celent 2025 Model Bank Award for Customer Centered Innovation in Business Banking.
• The bank migrated petabytes of data to the cloud to unlock insights for more personalized customer experiences.
• TD's AI virtual assistant reportedly led to a 12% drop in call center volume (reported December 5, 2025).

Finance: review Q4 2025 Wholesale Banking revenue growth against Q4 2024 for the next strategic review deck by next Tuesday.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Customer Relationships

You're looking at how The Toronto-Dominion Bank (TD) deepens ties with its massive client base as of late 2025. The core strategy revolves around delivering consistent experiences and targeted advice across all channels. This focus on relationship deepening was a key pillar highlighted at their 2025 Investor Day.

Connected Customer Experience (CCX): Providing choice, consistency, and continuity across touchpoints.

The Toronto-Dominion Bank serves over 28.1 million customers globally, with more than 18 million active online and mobile customers as of late 2025. The goal here is seamless movement between digital and human channels. In the Wealth Management business, which served almost 2.7 million clients in Q4 2025, this continuity is crucial for high-value interactions. The bank is also investing heavily in digital modernization, which supports this experience.

Dedicated Advisory Model: Deploying more wealth advisors and business bankers for high-touch service.

For clients needing more personalized attention, The Toronto-Dominion Bank maintains a significant human touchpoint network. You can see the scale in the numbers below. This deployment supports the strategy of delivering tailored advice, which is a clear differentiator from purely digital offerings. Honestly, having this many advisors ready to connect virtually, by phone, or in-person is a major resource.

Relationship Metric	2025 Data Point
Total TD Wealth Advisors (Canada)	2500+
Wealth Management Clients Served (Q4 2025)	Almost 2.7 million
Canadian Personal Bank to Wealth Referrals	Record closed referrals in fiscal 2025
SBA Lending Ranking (U.S. Footprint)	No.1 for the ninth consecutive year in 2025

AI-Driven Personalization: Using TDAI Prism to deliver accelerated, tailored client insights.

The internal development of the TD AI Prism platform is a clear move to make personalization scalable. This generative AI-driven platform is designed to proactively predict consumer needs. The impact is tangible: marketing teams use it to target communications, such as identifying consumers looking for a mortgage. The bank implemented 75 artificial intelligence (AI) use cases in 2025, which generated 170 million Canadian dollars in value. Furthermore, the deployment of TD AI Prism specifically boosted cross-selling by up to 30%. The bank expects these AI investments to generate 200 million Canadian dollars in incremental value in 2026.

It's not just about sales; AI is also improving risk management. Fraud losses were down 26% year-over-year in fiscal 2025 due to modernization efforts, including machine learning enhancements to transaction monitoring systems.

Community-Focused Sponsorships: Building brand trust and local engagement.

Brand trust is built through community investment, which is channeled primarily through the TD Ready Commitment platform. This platform has a target of C$1 billion committed to community giving and colleague engagement by 2030. The TD Charitable Foundation, the bank's giving arm, has contributed over $361 million to nonprofits since its inception in 2002. For example, in March 2025, TD donated over $1 million across three initiatives focused on financial literacy and skills development. The 2024 TD Ready Challenge, which supports innovative solutions for underserved small business owners, awarded $10 million across 10 organizations.

• TD Ready Commitment focus areas: Financial Security, Vibrant Planet, Connected Communities, and Better Health.
• TD Charitable Foundation total contributions since 2002: Over $361 million.
• 2024 TD Ready Challenge grants awarded: 10 organizations received $1 million each.
• TD Bank Group earned the 2025 Great Places to Work Certification™ for the tenth year in a row.

High-Touch Private Banking: Bespoke solutions for mass affluent and technology founders.

For the highest-tier clients, TD Wealth Private Client Group offers a dedicated team structure. This group is specifically available to clients who maintain $750,000 or more in investible assets and $3 million or more in net worth (excluding real estate). These clients receive personalized support from a Relationship Manager, an investment advisor, a planning specialist, and private client banking professionals. The overall Wealth Management business saw record earnings and total assets exceeding a record $1.3 trillion in Q4 2025.

Finance: draft Q1 2026 client engagement forecast by end of January.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Channels

The Toronto-Dominion Bank (TD) employs a multi-channel strategy to reach its customer base of over 28.1 million clients globally across its four key businesses as of late 2025.

Physical Branch Network

The physical branch network remains a core channel, strategically positioned for complex advice, though undergoing optimization. As of Q3 2025, TD Bank had 2,151 retail locations in North America. The U.S. Retail Bank, operating under the TD Bank, America's Most Convenient Bank® brand, provided services through approximately 1,100 convenient locations across the Northeast, Mid-Atlantic, Metro D.C., the Carolinas, and Florida as of July 31, 2025. This network is being reshaped from transaction hubs to high-value advice centers. The bank has announced plans to close 51 branches by the end of January 2026 as part of this optimization.

Digital Banking Platforms

Digital channels are a major focus for acquisition and service delivery. TD also ranks among North America's leading digital banks, serving more than 13 million mobile active users across Canada and the U.S. as of October 31, 2025. The bank has a stated goal to increase digital adoption to 70%. The Canadian Wealth Management division boasts Canada's #1 direct investing platform. Furthermore, TD Insurance reported that over 46% of its new sales in Q2 2025 were completed digitally from end-to-end.

ATM Network

The self-service distribution is extensive across North America. The total number of ATMs across the TD Bank Group was reported at 5,949 as of January 31, 2025. For the U.S. Retail segment specifically, the number of ATMs was reported as 2,561 in a recent filing.

Here is a summary of the physical distribution footprint based on recent reporting:

Channel Metric	Reported Number	As of Date/Period
Total TD Bank Group Branches & Offices	2,197	January 31, 2025
TD Bank U.S. Retail Locations	1,100	Q3 2025
TD Bank U.S. Retail Locations (Total North America)	2,151	Q3 2025
Total TD Bank Group ATMs	5,949	January 31, 2025
TD Bank U.S. Retail ATMs	2,561	October 1, 2025 filing

Contact Centers

Centralized support is provided through contact centers, which are increasingly integrating advanced technology. Jo Jagadish serves as the Head of Digital Banking and U.S. Contact Centers. Industry prediction suggests that generative AI will be used by 80% of customer service and support organizations to improve customer experience and agent productivity by the end of 2025.

Dedicated Sales Teams

Specialized sales teams drive advice-based and complex sales across segments. The U.S. Retail Bank serves over 10 million customers, supported by dedicated teams of bankers. TD announced plans to double its hiring of wealth advisers. Within TD Wealth, Financial Planners are focused on delivering exceptional client outcomes. The Wholesale Banking group serves over 17,000 corporate, government, and institutional clients globally.

• TD Insurance is the #1 direct-to-consumer insurer in Canada.
• Wealth Management has the fastest-growing private wealth management business in Canada.
• The bank is focused on enhancing front-line productivity.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Customer Segments

The Toronto-Dominion Bank (TD) Bank Group serves over 28.1 million customers across its four key businesses as of late 2025. The bank also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers.

Customer Segment	Key Metric/Data Point	Value/Amount
Canadian Personal and Commercial Banking	Q4 2025 Net Income	$1,865 million
Canadian Personal and Commercial Banking	Q4 2025 Record Revenue	$5,305 million
Canadian Personal and Commercial Banking	Customers Served	Over 15 million
U.S. Retail	Households and Businesses Served	Over 10 million
U.S. Retail	Q4 2025 Net Income	$719 million (US$520 million)
U.S. Retail	Total Asset Size (End of Fiscal 2025)	US$382 billion (down 11% YoY)
Wealth Management and Insurance	Q4 2025 Net Income	$699 million
Wealth Management and Insurance	Total Assets (Q4 2025)	Exceeding a record $1.3 trillion
Wealth Management and Insurance	Q4 2025 Record ETF Sales	$1.6 billion
Wholesale Banking	Q4 2025 Record Revenue	$2,200 million
Wholesale Banking	Q4 2025 Adjusted Net Income	Record $529 million
Wholesale Banking	Corporate, Government, and Institutional Clients	Over 17,000

For Canadian Personal and Commercial Banking, you are serving retail customers and small-to-medium enterprises, with Canadian Business Banking reporting strong loan growth from commercial lending. Canadian Personal Banking saw a record year in digital sales for day-to-day banking products.

In U.S. Retail, the bank is one of the 10 largest in the U.S. by assets. The segment focuses on personal, business banking, and wealth management operations. The bank ranked No.1 for the ninth consecutive year in total number of approved U.S. Small Business Administration loans in its Maine to Florida footprint.

Wealth Management and Insurance targets specific tiers of clients:

• Mass affluent and high-net-worth individuals.
• Private Wealth Management requires a minimum investment of CDN $1,000,000 or more in investable assets.
• Financial Planning services require a minimum investment of CDN $100,000 or more in investable assets.
• TD Insurance launched a next generation usage-based insurance program.

Wholesale Banking, operating under the TD Securities brand, offers capital markets and corporate and investment banking services globally. TD Cowen, part of this segment, advanced to No.6 in the U.S. Corporate Access 2025 Extel Survey.

The segment for Technology Entrepreneurs is served by the specialized TD Innovation Partners team, though specific customer counts or financial metrics for this group weren't explicitly detailed in the Q4 2025 results summaries.

For fiscal 2025, TD delivered adjusted net income of $15.03 billion.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Cost Structure

You're looking at the major drains on The Toronto-Dominion Bank (TD) Group's bottom line as of late 2025. The cost structure is heavily influenced by necessary regulatory clean-up and ongoing investment in future capabilities, so let's break down the hard numbers.

Employee Compensation

Personnel costs represent a significant, fixed component of the cost base, supporting a large global operation. As of October 31, 2025, The Toronto-Dominion Bank had approximately 100,000 colleagues worldwide.

The expense structure reflects this scale, with compensation being a primary driver of operating costs. For example, reported non-interest expenses for Q4 2025 were $8.81 billion, an increase of 9% year-over-year, with about one-third of that growth driven by variable compensation and employee-related expenses.

Regulatory and Compliance Costs

Remediation efforts continue to be a major, non-discretionary cost center, particularly in the U.S. operations. For the full fiscal year 2025, total U.S. Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) remediation and governance and control investments totaled $507 million.

These costs are a direct result of past compliance failures. The bank expects to incur similar investments in fiscal 2026.

Technology and AI Investment

The Toronto-Dominion Bank is actively spending to modernize its infrastructure, which includes cloud migration and embedding artificial intelligence (AI) across the enterprise. This investment is aimed at creating efficiency and driving future value, not just covering current costs.

In fiscal 2025, The Toronto-Dominion Bank Group implemented 75 artificial intelligence (AI) use cases. These implementations generated approximately CAD 170 million (about $122 million) in value during the year. The bank anticipates this will grow, projecting CAD 200 million (about $143 million) in incremental value from AI in 2026.

The focus areas for these technology investments include:

• Customer acquisition.
• Customer insights.
• Risk management, including fraud modernization.
• Enhancing U.S. AML remediation efforts.

Provision for Credit Losses (PCL)

The Provision for Credit Losses (PCL) reflects the bank's assessment of credit risk in its loan portfolios. For the fourth quarter of 2025, the bank's provision for credit losses was stable quarter-over-quarter at 41 basis points on an adjusted basis.

For the full fiscal year 2025, the PCL rate was reported as 47 basis points, which was stable year-over-year.

Here's a look at the reported PCL dollar amounts for Q4 2025 across key segments:

Segment	Q4 2025 Reported PCL ($MM)	Q4 2024 Reported PCL ($MM)
Canadian Personal and Commercial Banking	537	430 (Calculated: 537 - 107 increase)
U.S. Retail (Reported)	304 (Adjusted basis)	389 (Adjusted basis)
Total Reported PCL	982	1,109 (Calculated: 982 - 127 decrease)

The Q4 2025 reported PCL of $982 million was a decrease of 11% from $1.11 billion in Q4 2024.

Restructuring Charges

The Toronto-Dominion Bank is executing a multi-quarter restructuring program to reduce its structural cost base and create capacity for investment. This involves employee severance, asset impairment, and real estate optimization.

The financial impact of this efficiency drive was clear in the third and fourth quarters of 2025:

• Q3 2025 pre-tax restructuring charges: $333 million.
• Q4 2025 pre-tax restructuring charges: $190 million.
• The program is expected to conclude in Q1 2026 with total pre-tax charges of approximately $825 million.

The expected benefit from this entire program is an annual run rate cost saving of approximately CAD 750 million pre-tax.

The Toronto-Dominion Bank (TD) - Canvas Business Model: Revenue Streams

You're looking at The Toronto-Dominion Bank (TD) revenue streams as of late 2025, and the headline number for the full fiscal year is significant: Reported Revenue was $48.39 billion (CAD).

This total revenue figure is the sum derived from the bank's diversified operations across its major segments. To understand where that money comes from, we break it down into the core components that drive the top line.

Net Interest Income (NII): Revenue from lending activities minus interest paid on deposits.

This is the bread and butter for The Toronto-Dominion Bank (TD), reflecting the spread earned on its massive loan and mortgage book versus the cost of funding those assets through customer deposits. For the fourth quarter of fiscal 2025, the Canadian Personal and Commercial Banking segment alone generated $4,304 million in Net Interest Income. Furthermore, the strategic repositioning of the investment portfolio provided an estimated NII benefit of approximately $500 million (pre-tax) for the full fiscal year 2025.

Non-Interest Income: Fees, service charges, and wealth management fees.

This stream captures the revenue generated when The Toronto-Dominion Bank (TD) is not acting as a lender or borrower. It's driven by transactional activity and asset management. For instance, in the fourth quarter of 2025, the Canadian Personal and Commercial Banking segment recorded $1,001 million in Non-Interest Income. The strength in fee-based services was also evident in Wealth Management, which saw record sales of $1.6 billion in ETFs during that same quarter.

Here's a snapshot of how some revenue components looked in the fourth quarter of fiscal 2025 (all figures in millions of Canadian dollars):

Revenue Stream Component	Q4 2025 Amount (CAD)	Segment Context
Canadian Personal and Commercial Banking Net Interest Income	4,304	Lending activities spread
Canadian Personal and Commercial Banking Non-Interest Income	1,001	Fees and service charges
U.S. Retail Revenue	3.45 billion	Total revenue for the U.S. retail segment
Wealth Management and Insurance Revenue	3.79 billion	Total revenue for the division
Wholesale Banking Revenue	2.2 billion	Global markets and investment banking

Trading Income: Revenue generated from Wholesale Banking's global markets activities.

This is directly tied to the performance of The Toronto-Dominion Bank (TD)'s Wholesale Banking division, which includes Global Markets and Corporate and Investment Banking. The fourth quarter of 2025 showed robust activity here, with Wholesale Banking revenue climbing 24% year-over-year to reach $2.2 billion for that quarter. This indicates strong client activity in capital markets, which is a key driver of non-interest income.

Insurance Premiums: Revenue from property and casualty, life, and health insurance products.

While The Toronto-Dominion Bank (TD)'s insurance operations are integrated within the Wealth Management and Insurance segment, the premium intake is a distinct revenue source. In the fourth quarter of 2025, the combined division's revenue was $3.79 billion, though this figure was impacted by reinsurance recoveries related to catastrophe claims. The bank launched a next generation usage-based insurance program and mobile app during 2025, aimed at rewarding safe driving.

You can see the mix of income sources contributing to the overall performance:

• Canadian Personal and Commercial Banking revenue for Q4 2025 was a record $5.31 billion.
• Wealth Management and Insurance net income for Q4 2025 was $699 million, up $350 million year-over-year.
• The bank's adjusted diluted earnings per share for the full year 2025 reached $8.37.
• Reported net income for the full year 2025 was $20,538 million.

Finance: draft 13-week cash view by Friday.