TD Bank’s fourth-quarter profit fell 10 per cent to $3.3 billion from the same period last year, while the bank expects to incur more restructuring expenses going forward.
The bank announced in the second quarter that it was cutting two per cent of its workforce as it aimed to reduce costs and refocus spending under new leadership.
On Thursday, TD said the restructuring program will involve an approximate three per cent staff reduction, according to the earnings release. A spokesperson for the bank said that “additional opportunities to streamline our organizational structure” were identified.
“The bank continued to undertake certain measures in the fourth quarter of 2025 to reduce its cost base and achieve greater efficiency,” the release stated.
“Next quarter, the bank expects to incur additional restructuring charges of approximately $125 million pre-tax, and to conclude the restructuring program with total restructuring charges of approximately $825 million pre-tax,” it continued.
In the fiscal year ended Oct. 31, the bank said restructuring charges amounted to $686 million pre-tax, including employee-severance and “personnel-related costs.”
“As we enter fiscal 2026, TD is well-positioned to navigate changing economic dynamics and support the aspirations and needs of our clients,” TD CEO Raymond Chun said in a statement.
BMO and CIBC also reported earnings on Thursday. All three banks’ earnings beat analysts’ expectations despite economic uncertainty from the U.S. trade war.
BMO’s fourth-quarter profit took a slight hit to $2.3 billion compared to Q4 2024. CIBC’s net income rose 16 per cent to $2.2 billion from the same time last year.
On Tuesday, Scotiabank also announced it boosted its fourth-quarter profit.
This is a developing story.
