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Cision Canada
3 days ago
- Business
- Cision Canada
Laurentian Bank of Canada reports second quarter 2025 results Français
The financial information reported herein is based on the condensed interim consolidated (unaudited) information for the three-month and six-month periods ended April 30, 2025 and has been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (IASB). All amounts are denominated in Canadian dollars. The Laurentian Bank of Canada and its entities are collectively referred to as "Laurentian Bank" or the "Bank" and provide deposit, investment, loan, securities, trust and other products or services. MONTREAL, May 30, 2025 /CNW/ - Laurentian Bank of Canada reported net income of $32.3 million and diluted earnings per share of $0.69 for the second quarter of 2025, compared with a net loss of $117.5 million and a diluted loss per share of $2.71 for the second quarter of 2024. Return on common shareholders' equity (1) was 4.9% for the second quarter of 2025, compared with a negative 18.6% for the second quarter of 2024. Adjusted net income (2) was $34.0 million and adjusted diluted earnings per share (1) were $0.73 for the second quarter of 2025, compared with $40.5 million and $0.90 for the second quarter of 2024. Adjusted return on common shareholders' equity (1) was 5.2% for the second quarter of 2025, compared with 6.1% a year ago. For the six months ended April 30, 2025, reported net income was $70.9 million and diluted earnings per share were $1.44, compared with a net loss of $80.3 million and a diluted loss per share of $1.97 for the six months ended April 30, 2024. Return on common shareholders' equity was 5.1% for the six months ended April 30, 2025, compared with a negative 6.7% for the six months ended April 30, 2024. Adjusted net income was $73.4 million and adjusted diluted earnings per share were $1.50 for the six months ended April 30, 2025, compared with $84.7 million and $1.80 for the six months ended April 30, 2024. Adjusted return on common shareholders' equity was 5.3% for the six months ended April 30, 2025, compared with 6.1% for the same period a year ago. "As we mark the one-year anniversary of our strategic plan, Laurentian Bank has remained focused and disciplined in executing the priorities we set to transform the organization and achieve our medium-term financial objectives," said Éric Provost, President and Chief Executive Officer of Laurentian Bank. "We are seeing positive momentum in our specialized businesses. While there is still more to accomplish, we are satisfied with the progress we have made thus far. Looking ahead, we will continue to expand our presence and sharpen our focus in specialized areas, which will support both customer success and shareholder returns." (1) This is a non-GAAP ratio. For more information, refer to the Non-GAAP Financial and Other Measures below and beginning on page 5 of the Second Quarter 2025 Report to Shareholders, including the Management's Discussion & Analysis (MD&A) for the period ended April 30, 2025, which pages are incorporated by reference herein. The MD&A is available on SEDAR+ at (2) This is a non-GAAP financial measure. For more information, refer to the Non-GAAP Financial and Other Measures section below and beginning on page 5 of the Second Quarter 2025 Report to Shareholders, including the MD&A for the period ended April 30, 2025, which pages are incorporated by reference herein. (3) This is a supplementary financial measure. For more information, refer to the Non-GAAP Financial below and beginning on page 5 of the Second Quarter 2025 Report to Shareholders, including the MD&A for the period ended April 30, 2025, which pages are incorporated by reference herein. (4) In accordance with the Office of the Superintendent of Financial Institutions' (OSFI) "Capital Adequacy Requirements" guideline. Non-GAAP Financial and Other Measures In addition to financial measures based on generally accepted accounting principles (GAAP), management uses non-GAAP financial measures to assess the Bank's underlying ongoing business performance. Non-GAAP financial measures presented throughout this document are referred to as "adjusted" measures and exclude amounts designated as adjusting items. Adjusting items include certain items of significance that arise from time to time which management believes are not reflective of underlying business performance, as well as the amortization of acquisition-related intangible assets. Non-GAAP financial measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements of the Bank and might not be comparable to similar financial measures disclosed by other issuers. The Bank believes non-GAAP financial measures are useful to readers in obtaining a better understanding of how management assesses the Bank's performance and in analyzing trends. The following tables show a reconciliation of the non-GAAP financial measures to their most directly comparable financial measure that is disclosed in the primary financial statements of the Bank. For the three months ended For the six months ended In thousands of dollars (Unaudited) April 30 2025 January 31 2025 April 30 2024 April 30 2025 April 30 2024 Total revenue $ 242,516 $ 249,637 $ 252,594 $ 492,153 $ 510,935 Less: Adjusting items, before income taxes Profit on sale of assets under administration (1) — (875) — (875) — Adjusted total revenue $ 242,516 $ 248,762 $ 252,594 $ 491,278 $ 510,935 Non-interest expenses $ 184,518 $ 186,973 $ 386,341 $ 371,491 $ 584,175 Less: Adjusting items, before income taxes Restructuring and other impairment charges (2) 2,222 2,027 40,832 4,249 46,908 P&C Banking segment impairment charges (3) — — 155,933 — 155,933 Amortization of acquisition-related intangible assets (4) — — 3,229 — 6,446 2,222 2,027 199,994 4,249 209,287 Adjusted non-interest expenses $ 182,296 $ 184,946 $ 186,347 $ 367,242 $ 374,888 Income (loss) before income taxes $ 41,305 $ 47,489 $ (151,678) $ 88,794 $ (108,069) Adjusting items, before income taxes (detailed above) 2,222 1,152 199,994 3,374 209,287 Adjusted income before income taxes $ 43,527 $ 48,641 $ 48,316 $ 92,168 $ 101,218 Reported net income (loss) $ 32,329 $ 38,601 $ (117,547) $ 70,930 $ (80,264) Adjusting items, net of income taxes Profit on sale of assets under administration (1) — (643) — (643) — Restructuring and other impairment charges (2) 1,633 1,490 30,020 3,123 34,488 P&C Banking segment impairment charges (3) — — 125,629 — 125,629 Amortization of acquisition-related intangible assets (4) — — 2,410 — 4,812 1,633 847 158,059 2,480 164,929 Adjusted net income $ 33,962 $ 39,448 $ 40,512 $ 73,410 $ 84,665 Net income (loss) available to common shareholders $ 30,393 $ 33,352 $ (118,835) $ 63,745 $ (86,153) Adjusting items, net of income taxes (detailed above) 1,633 847 158,059 2,480 164,929 Adjusted net income available to common shareholders $ 32,026 $ 34,199 $ 39,224 $ 66,225 $ 78,776 (1) The profit on sale of assets under administration resulted from the sale of assets under administration of Laurentian Bank Securities' (LBS) retail full-service investment broker division in the fourth quarter of 2024 and of LBS' discount brokerage division in the first quarter of 2025. The profit on sale of assets under administration is included in the Other income line item. For more information, refer to the Business Highlights section beginning on page 7 of the Second Quarter 2025 Report to Shareholders including the MD&A for the period ended April 30, 2025, which pages are incorporated by reference herein. (2) Restructuring and other impairment charges in 2025 mainly resulted from the simplification of the Bank's technology infrastructure and organizational structure. Restructuring and other impairment charges in 2024 mainly resulted from the Bank's decision to suspend the Advanced Internal-Ratings Based (AIRB) approach to credit risk project and to reduce its leased corporate office premises in Toronto, as well as from the simplification of the Bank's technology infrastructure, organizational structure and headcount reduction. Restructuring and other impairment charges mainly comprised of impairment charges, severance charges and professional fees and are included in the Impairment and restructuring charges line item. (3) The Personal and Commercial (P&C) Banking segment impairment charges related to the impairment of the P&C Banking segment as part of the goodwill impairment test performed as at April 30, 2024. Impairment charges are included in the Impairment and restructuring charges line item. (4) Amortization of acquisition-related intangible assets resulted from business acquisitions and was included in the Other non-interest expenses line item. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES — CONSOLIDATED BALANCE SHEET (1) The cash flow hedge reserve is presented in the Accumulated other comprehensive income line item. (2) Based on the month-end balances for the period. Consolidated Results Three months ended April 30, 2025 financial performance Net income was $32.3 million and diluted earnings per share were $0.69 for the second quarter of 2025, compared with a net loss of $117.5 million and a diluted loss per share of $2.71 for the second quarter of 2024. Adjusted net income was $34.0 million and adjusted diluted earnings per share were $0.73 for the second quarter of 2025, compared with $40.5 million and $0.90 for the second quarter of 2024. Refer to the Non-GAAP Financial and Other Measures section for a reconciliation of non-GAAP financial measures. Total revenue Total revenue decreased by $10.1 million to $242.5 million for the second quarter of 2025, compared with $252.6 million for the second quarter of 2024, mostly due to lower other income as detailed below. Net interest income increased by $2.6 million or 1% to $182.2 million for the second quarter of 2025, compared with $179.6 million for the second quarter of 2024. The positive impact of favourable changes in the Bank's business mix was partly offset by lower interest income from the reduction in average earning assets. The net interest margin was 1.85% for the second quarter of 2025, an increase of 5 basis points compared with the second quarter of 2024, mainly for the same reasons. Other income decreased by $12.6 million to $60.3 million for the second quarter of 2025, compared with $73.0 million for the second quarter of 2024. Fees and securities brokerage commissions decreased by $6.8 million compared with the second quarter of 2024 mainly as a result of the sale of assets under administration of LBS' retail full-service investment broker division in the fourth quarter of 2024. Lending fees also decreased by $3.4 million compared with the second quarter of 2024 considering lower real estate activity. Provision for credit losses The provision for credit losses was $16.7 million for the second quarter of 2025, compared with $17.9 million for the second quarter of 2024, a decrease of $1.2 million mainly as a result of lower provisions on impaired loans, partly offset by higher provisions on performing loans. The provision for credit losses as a percentage of average loans was 19 basis points for the quarter, compared with 20 basis points for the same quarter a year ago. Refer to the "Credit risk management" section on pages 13 to 15 of the Bank's MD&A for the second quarter of 2025 and to Note 5 to the Condensed Interim Consolidated Financial Statements for more information on provision for credit losses and allowances for credit losses. Non-interest expenses Non-interest expenses amounted to $184.5 million for the second quarter of 2025, a decrease of $201.8 million compared with the second quarter of 2024. Of note, reported results for the second quarter of 2024 included impairment and restructuring charges of $196.8 million related to the restructuring of the Bank's operations and to the impairment of the P&C Banking segment. Adjusted non-interest expenses decreased by $4.1 million or 2% to $182.3 million for the second quarter of 2025, compared with $186.3 million the second quarter of 2024. Salaries and employee benefits amounted to $92.4 million for the second quarter of 2025, a decrease of $7.1 million compared with the second quarter of 2024, mostly due to efficiency gains resulting from the reduced headcount and lower performance-based compensation, mainly due to the sale of assets under administration of LBS' retail investment broker divisions. Premises and technology costs were $51.8 million for the second quarter of 2025, an increase of $1.7 million compared with the second quarter of 2024. The increase year-over-year is mainly due to higher technology costs as the Bank is investing in its strategic priorities, partly offset by lower amortization charges and rent expenses resulting from the impairment effected in the second quarter of 2024. Other non-interest expenses were $38.1 million for the second quarter of 2025, a decrease of $1.9 million compared with the second quarter of 2024, mainly resulting from lower amortization of acquisition-related intangible assets, partly offset by higher professional fees to support the Bank's strategic priorities. Impairment and restructuring charges were $2.2 million for the second quarter of 2025, compared with $196.8 million for the second quarter of 2024. In the second quarter of 2025, impairment and restructuring charges were related to streamlining the Bank's organizational structure. In the second quarter of 2024, the impairment test of the P&C Banking segment resulted in impairment charges of $155.9 million. Restructuring and other impairment charges of $40.8 million were also recorded following the Bank's decision to suspend the AIRB project and to reduce its leased corporate office premises in Toronto, as well as from the simplification of the Bank's organizational structure and headcount reduction. Refer to the Non-GAAP Financial and Other Measures section for further details. Efficiency ratio The efficiency ratio on a reported basis decreased to 76.1% for the second quarter of 2025, compared with 152.9% for the second quarter of 2024. The decrease year-over-year is mainly due to the impairment and restructuring charges recorded in the second quarter of 2024, as described above. The adjusted efficiency ratio increased to 75.2% for the second quarter of 2025, compared with 73.8% for the second quarter of 2024, mainly as a result of lower total revenue. Income taxes For the second quarter of 2025, the income tax expense was $9.0 million, and the effective income tax rate was 21.7%. The lower effective income tax rate, compared to the statutory income tax rate, was essentially attributed to a lower taxation level of income from foreign operations. For the second quarter of 2024, the income tax recovery was $34.1 million, and the effective income tax rate was 22.5%. The lower effective income tax rate, compared to the statutory income tax rate, was attributed to the non-tax deductible goodwill impairment charge, partly offset by the lower taxation level of income from foreign operations. Financial Condition As at April 30, 2025, total assets amounted to $49.5 billion, a 4% increase compared with $47.4 billion as at October 31, 2024 mostly due to the higher level of liquid assets and loans. Liquid assets As at April 30, 2025, liquid assets as presented on the balance sheet amounted to $12.6 billion, an increase of $1.5 billion compared with $11.2 billion as at October 31, 2024. The Bank continues to prudently manage its level of liquid assets. The Bank's funding sources remain well diversified and sufficient to meet all liquidity requirements. Liquid assets represented 26% of total assets as at April 30, 2025, in line with October 31, 2024. Loans Loans, net of allowances, stood at $35.5 billion as at April 30, 2025, an increase of $0.4 billion since October 31, 2024. Commercial loans amounted to $17.5 billion as at April 30, 2025, an increase of $0.9 billion or 5% since October 31, 2024 mainly resulting from higher inventory financing and real estate commercial loans. Personal loans of $2.0 billion as at April 30, 2025 decreased by $0.1 billion from October 31, 2024, mainly as a result of a decline in the investment loan portfolio driven by volatile market conditions and high interest rates. Residential mortgage loans of $16.1 billion as at April 30, 2025 decreased by $0.4 billion or 2% from October 31, 2024. Deposits Deposits increased by $0.7 billion to $23.9 billion as at April 30, 2025 compared with $23.2 billion as at October 31, 2024. Personal deposits stood at $20.8 billion as at April 30, 2025, an increase of $1.1 billion compared with $19.7 billion as at October 31, 2024. Of note, deposits from advisors and brokers increased by $1.7 billion and personal notice and demand deposits from partnerships decreased by $0.6 billion since October 31, 2024. Personal deposits represented 87% of total deposits as at April 30, 2025, compared with 85% as at October 31, 2024, and contributed to the Bank's sound liquidity position. Business and other deposits decreased by $0.4 billion over the same period to $3.1 billion as at April 30, 2025. Debt related to securitization activities Debt related to securitization activities increased by $0.4 billion or 3% compared with October 31, 2024 and stood at $13.9 billion as at April 30, 2025. During the quarter, new issuances of cost-effective long-term debt related to securitization activities more than offset maturities of liabilities, as well as normal repayments. Shareholders' equity and regulatory capital Shareholders' equity stood at $2.9 billion as at April 30, 2025 and increased by $28.9 million compared with October 31, 2024. Retained earnings increased by $23.6 million compared to October 31, 2024, mainly as a result of the sum of the net income contribution of $70.9 million, partly offset by dividends and other distributions amounting to $48.6 million. Accumulated other comprehensive income decreased by $1.4 million compared to October 31, 2024. For additional information, please refer to the Capital Management section of the Bank's MD&A and to the Consolidated Statement of Changes in Shareholders' Equity for the period ended April 30, 2025. The Bank's book value per common share was $57.40 as at April 30, 2025 compared to $57.36 as at October 31, 2024. The CET1 capital ratio was 11.0% as at April 30, 2025, in excess of the minimum regulatory requirement and the Bank's target management levels. The CET1 capital ratio increased by 10 basis compared with 10.9% as at October 31, 2024, mainly due to the risk-weighted assets reduction. The Bank met OSFI's capital and leverage requirements throughout the quarter. On May 13, 2025, the Board of Directors declared a dividend of $0.38725 per Preferred Share Series 13, payable on June 15, 2025 (the "Payment Date"), that will be paid out on June 16, 2025, the first business day after the Payment Date, to shareholders of record on June 9, 2025. On May 29, 2025, the Board of Directors declared a quarterly dividend of $0.47 per common share, payable on August 1, 2025, to shareholders of record on July 1, 2025. This quarterly dividend is equal to the dividend declared in the previous quarter and to the dividend declared in the previous year. On May 29, 2025, the Board also determined that shares attributed under the Bank's Shareholder Dividend Reinvestment and Share Purchase Plan will be made in common shares issued from Corporate Treasury with a 2% discount. Caution Regarding Forward-Looking Statements From time to time, Laurentian Bank of Canada and, as applicable its subsidiaries (collectively referred to as the Bank) will make written or oral forward-looking statements within the meaning of applicable Canadian and United States (U.S.) securities legislation, including, forward-looking statements contained in this document (and in the documents incorporated by reference herein), as well as in other documents filed with Canadian and U.S. regulatory authorities, in reports to shareholders, and in other written or oral communications. These forward-looking statements are made in accordance with the "safe harbor" provisions of, and are intended to be forward-looking statements in accordance with, applicable Canadian and U.S. securities legislation. They include, but are not limited to; statements regarding the Bank's vision, strategic goals, business plans and strategies, priorities and financial performance objectives; the economic, market, and regulatory review and outlook for Canadian, U.S. and global economies; the regulatory environment in which the Bank operates; the risk environment, including, credit risk, liquidity, and funding risks; statements under the heading "Risk Appetite and Risk Management Framework" contained in the 2024 Annual Report, including, the MD&A for the fiscal year ended October 31, 2024; and other statements that are not historical facts. Forward-looking statements typically are identified with words or phrases such as "believe", "assume", "estimate", "forecast", "outlook", "project", "vision", "expect", "foresee", "anticipate", "intend", "plan", "goal", "aim", "target", and expressions of future or conditional verbs such as "may", "should", "could", "would", "will", "intend" or the negative of any of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature, which give rise to the possibility that the Bank's predictions, forecasts, projections, expectations, or conclusions may prove to be inaccurate; that the Bank's assumptions may be incorrect (in whole or in part); and that the Bank's financial performance objectives, visions, and strategic goals may not be achieved. Forward-looking statements should not be read as guarantees of future performance or results, or indications of whether or not actual results will be achieved. Material economic assumptions underlying such forward-looking statements are set out in the 2024 Annual Report under the heading "Outlook", which assumptions are incorporated by reference herein. The Bank cautions readers against placing undue reliance on forward-looking statements, as a number of factors, many of which are beyond the Bank's control and the effects of which can be difficult to predict or measure, could influence, individually or collectively, the accuracy of the forward-looking statements and cause the Bank's actual future results to differ significantly from the targets, expectations, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to general and market economic conditions; inflationary pressures; the dynamic nature of the financial services industry in Canada, the U.S., and globally; risks relating to credit, market, liquidity, funding, insurance, operational and regulatory compliance (which could lead to the Bank being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties, and fines); reputational risks; legal and regulatory risks; competitive and systemic risks; supply chain disruptions; geopolitical events and uncertainties; government sanctions and tariffs (both domestic and foreign); conflict, war, or terrorism; and various other significant risks discussed in the risk-related portions of the Bank's 2024 Annual Report, such as those related to: Canadian and global economic conditions; Canadian housing and household indebtedness; technology, information systems and cybersecurity; technological disruption, privacy, data and third party related risks; competition; the Bank's ability to execute on its strategic objectives; digital disruption and innovation (including, emerging fintech competitors); changes in government fiscal, monetary and other policies; tax risk and transparency; fraud and criminal activity; human capital; business continuity; emergence of widespread health emergencies or public health crises; environmental and social risks including, climate change; and various other significant risks, as described beginning on page 14 of the 2024 Annual Report, including the MD&A, which information is incorporated by reference herein. The Bank further cautions that the foregoing list of factors is not exhaustive. When relying on the Bank's forward-looking statements to make decisions involving the Bank, investors, financial analysts, and others should carefully consider the foregoing factors, uncertainties, and current and potential events. Any forward-looking statements contained herein or incorporated by reference represent the views of management of the Bank only as at the date such statements were or are made, are presented for the purposes of assisting investors, financial analysts, and others in understanding certain key elements of the Bank's financial position, current objectives, strategic priorities, expectations and plans, and in obtaining a better understanding of the Bank's business and anticipated financial performance and operating environment and may not be appropriate for other purposes. The Bank does not undertake any obligation to update any forward-looking statements made by the Bank or on its behalf whether as a result of new information, future events or otherwise, except to the extent required by applicable securities legislation. Additional information relating to the Bank can be located on SEDAR+ at Access to Quarterly Results Materials This press release can be found on the Bank's website at in the About us section under the News releases tab, and the Bank's Report to Shareholders, Investor Presentation and Supplementary Financial Information can be found in the About us section under the Investor relations tab, Quarterly results. Conference Call Laurentian Bank of Canada invites media representatives and the public to listen to the conference call to be held at 9:00 a.m. (ET) on May 30, 2025. The live, listen-only, toll-free, call-in number is 1-800-990-4777, and mention Laurentian Bank to the operator. A live webcast will also be available on the Bank's website in the Investor relations tab, Quarterly results. The conference call playback will be available on a delayed basis from 12:00 p.m. (ET) on May 30, 2025, until 12:00 p.m. (ET) on June 6, 2025, on our website under the Investor Centre tab, Financial Results. The presentation material referenced during the call will be available on our website in the Investor relations section, Quarterly results. About Laurentian Bank of Canada Founded in Montréal in 1846, Laurentian Bank wants to foster prosperity for all customers through specialized commercial banking and low-cost banking services to grow savings for middle-class Canadians. With a workforce of approximately 2,800 employees, the Bank offers a wide range of financial services and advice-based solutions to customers across Canada and the United States. Laurentian Bank manages $49.5 billion in balance sheet assets and $24.2 billion in assets under administration. SOURCE Laurentian Bank of Canada
Cision Canada
6 days ago
- Business
- Cision Canada
Scotiabank reports second quarter results Français
All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2025 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise noted. Our complete Second Quarter 2025 Report to Shareholders, including our unaudited interim financial statements for the period ended April 30, 2025, can also be found on the SEDAR+ website at and on the EDGAR section of the SEC's website at Supplementary Financial Information is also available, together with the Second Quarter 2025 Report to Shareholders on the Investor Relations page at TORONTO, May 27, 2025 /CNW/ - The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) reported second quarter net income of $2,032 million compared to $2,092 million in the same period last year. Diluted earnings per share (EPS) were $1.48, compared to $1.57 in the same period a year ago. Adjusted net income (1) for the second quarter was $2,072 million and adjusted diluted EPS (1) were $1.52, down from $1.58 last year. Adjusted return on equity (1) was 10.4% compared to 11.3% a year ago. "We continued to invest in our key strategic priorities this quarter, including building deeper, more advice-driven client relationships," said Scott Thomson, President and CEO of Scotiabank. "Amidst the continuously-evolving economic outlook, we are focused on what we can control and are executing on our strategic plan while continuing to deliver positive operating leverage. This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook. With strong balance sheet metrics, we remain well positioned to support our clients through this period of uncertainty and to seize growth opportunities as they arise." Canadian Banking generated adjusted earnings (1) of $613 million, down 31% compared to the prior year, due primarily to a significant increase in performing credit loss allowances and a lower margin. The business had solid asset and deposit growth, as well as good underlying momentum in fee revenue. International Banking generated adjusted earnings (1) of $719 million, up 7% year-over-year, with solid revenue generation and lower provision for credit losses, reflecting improvements in the portfolio. Continued positive operating leverage reflects the impact of successful productivity initiatives in the region. Global Wealth Management adjusted earnings (1) were $407 million, up 17% year-over-year driven by solid revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management (2) of $380 billion grew 9% year-over-year. Global Banking and Markets reported earnings of $412 million, up 10% compared to the prior year. The results were supported by strong performance in our capital markets business, as well as higher fee revenue in our corporate and investment banking business. The Bank reported a Common Equity Tier 1 (CET1) capital ratio (3) of 13.2% and declared a dividend of $1.10, representing a 4% increase. Financial Highlights Business Segment Review Effective the first quarter of 2025, the Bank made voluntary changes to its allocation methodology impacting business segment presentation. The new methodology includes updates related to the Bank's funds transfer pricing (FTP), head office expense allocations, and allocations between business segments. Prior period results and ratios for each segment have been revised to conform with the current period's methodology. Further details on the changes are as follows: FTP methodology was updated, primarily related to the allocation of substantially all liquidity costs to the business lines from the Other segment, reflecting the Bank's strategic objective to maintain higher liquidity ratios. Periodically, the Bank updates its allocation methodologies. This includes a comprehensive update to the allocation of head office expenses across countries within International Banking, updates to the allocation of clients and associated revenue, expenses, and balances between International Banking, Global Banking and Markets, and Global Wealth Management to align with the strategy, as well as updates to the allocation of head office expenses and taxes from the Other segment to the business segments. To be consistent with the reporting of Scotiabank's recent minority investment in KeyCorp, the Bank has also made changes to the reporting of certain minority investments in International Banking (Bank of Xi'an Co. Ltd.) and Global Wealth Management (Bank of Beijing Scotia Asset Management) which will now be reported in the Other segment. Canadian Banking Q2 2025 vs Q2 2024 Net income attributable to equity holders was $613 million, compared to $893 million, a decrease of $280 million or 31%. The decrease was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenues. Q2 2025 vs Q1 2025 Net income attributable to equity holders decreased $300 million or 33%. The decline was due primarily to higher provision for credit losses on performing loans and lower revenues, partly offset by lower non-interest expenses. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,526 million, compared to $1,866 million, a decrease of $340 million or 18%. Adjusted net income attributable to equity holders was $1,527 million, a decrease of $340 million or 18%. The decrease was due primarily to higher provision for credit losses and non-interest expenses, partly offset by higher revenues. International Banking Q2 2025 vs Q2 2024 Net income attributable to equity holders increased $37 million or 6% to $676 million. Adjusted net income attributable to equity holders increased $36 million or 6% to $681 million. The increase was driven by higher non-interest income, lower non-interest expenses, provision for credit losses, income taxes, and the positive impact of foreign currency translation. This was partly offset by lower net interest income. Q2 2025 vs Q1 2025 Net income attributable to equity holders increased $25 million or 4%. Adjusted net income attributable to equity holders increased $24 million or 4%. The increase was driven by lower provision for credit losses, non-interest expenses and income taxes, as well as higher net interest income and the positive impact of foreign currency translation. This was partly offset by lower non-interest income. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,327 million, a decrease of 2% from $1,352 million. Adjusted net income attributable to equity holders was $1,338 million, a decrease of $26 million or 2%. The decrease was driven by lower net interest income, higher provision for credit losses and the negative impact of foreign currency translation. This was partly offset by higher non-interest income, lower non-interest expenses, and lower income taxes. Financial Performance on a Constant Dollar Basis The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 6). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis. Q2 2025 vs Q2 2024 Net income attributable to equity holders was $676 million, up $29 million or 5%. Adjusted net income attributable to equity holders was $681 million, up $28 million or 4%. The increase was driven by higher non-interest income, lower provision for credit losses and lower income taxes. This was partly offset by lower net interest income. Q2 2025 vs Q1 2025 Net income attributable to equity holders was $676 million, up $14 million or 2%. Adjusted net income attributable to equity holders was $681 million, up $13 million or 2%. The increase was driven by lower provision for credit losses, non-interest expenses and income taxes. This was partly offset by lower non-interest income and net interest income, due mainly to three fewer days in the quarter. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $1,327 million, a decrease of 2% from $1,350 million. Adjusted net income attributable to equity holders was $1,338 million, a decrease of $23 million or 2%. The decrease was driven by lower net interest income and higher provision for credit losses and non-interest expenses. This was partly offset by higher non-interest income and lower income taxes. Global Wealth Management Q2 2025 vs Q2 2024 Net income attributable to equity holders was $399 million, an increase of $58 million or 17%. Adjusted net income attributable to equity holders was $405 million, up $57 million or 17%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher volume-related non-interest expenses. Q2 2025 vs Q1 2025 Net income attributable to equity holders decreased $8 million or 2%. Adjusted net income attributable to equity holders decreased $9 million or 2%, due primarily to lower mutual fund fees and brokerage revenues, partly offset by lower non-interest expenses and higher net interest income. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $806 million, an increase of $135 million or 20%. Adjusted net income attributable to equity holders was $819 million, up $135 million or 20%. The increase was due primarily to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. This was partly offset by higher non-interest expenses due largely to volume-related expenses. Global Banking and Markets Q2 2025 vs Q2 2024 Net income attributable to equity holders was $413 million compared to $375 million, an increase of $38 million or 10%. The increase was driven primarily by higher net interest income and non-interest income, partly offset by higher non-interest expenses, provision for credit losses and provision for income taxes. Q2 2025 vs Q1 2025 Net income attributable to equity holders was $413 million compared to $517 million, a decrease of $104 million or 20%. The decrease was primarily driven by lower non-interest income and higher provision for credit losses, partly offset by higher net interest income and lower provision for income taxes. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was $930 million compared to $763 million, an increase of $167 million or 22%. The increase was primarily driven by higher net interest income and non-interest income, partly offset by higher non-interest expenses, provision for credit losses and provision for income taxes. Other Q2 2025 vs Q2 2024 Net loss attributable to equity holders was $125 million, compared to a net loss of $182 million in the prior year. The adjusted net loss attributable to equity holders was $80 million compared to an adjusted net loss of $182 million in the prior year. The lower loss of $102 million was due to higher revenues, partly offset by higher expenses. The higher revenues were driven mainly by higher net interest income related to lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Q2 2025 vs Q1 2025 Net loss attributable to equity holders improved $1,216 million from the prior quarter, which included an impairment loss of $1,164 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama in the prior quarter. The adjusted net loss attributable to equity holders improved $97 million from the prior quarter. The lower loss was due to higher revenues, which were partly offset by higher expenses. The higher revenues were due primarily to higher net interest income from lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Year-to-date Q2 2025 vs Year-to-date Q2 2024 Net income attributable to equity holders was a net loss of $1,466 million which included an impairment loss of $1,164 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama, an increase in the net loss of $1,054 million compared to the prior year. Adjusted net income attributable to equity holders was a net loss of $257 million compared to a net loss of $412 million in the prior year. The lower loss was due to higher revenues, which were partially offset by higher expenses. The higher revenues were due primarily to higher net interest income from lower funding costs from lower interest rates, and higher revenue from the KeyCorp investment. The increase in expenses was driven primarily by higher technology costs. Credit risk Provision for credit losses Q2 2025 vs Q2 2024 The provision for credit losses was $1,398 million, compared to $1,007 million, an increase of $391 million. The provision for credit losses ratio increased by 21 basis points to 75 basis points. The provision for credit losses on performing loans was $346 million, compared to $32 million. The Bank substantially increased its provision for credit losses on performing loans this quarter to reflect the impact of a significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico. The increase also reflects the continued uncertainty related to U.S. tariffs, mainly impacting the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $1,052 million compared to $975 million, an increase of $77 million. The provision for credit losses ratio on impaired loans was 57 basis points, an increase of five basis points. The increase in provision this quarter was due primarily to higher impairment in Canadian retail across most products, as well as higher Canadian commercial provisions and one corporate account. Q2 2025 vs Q1 2025 The provision for credit losses was $1,398 million, compared to $1,162 million. The provision for credit losses ratio increased by 15 basis points to 75 basis points. Provision for credit losses on performing loans was $346 million, compared to $98 million. The substantial increase in provision this quarter reflects the impact of a significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico, and the continued uncertainty related to U.S. tariffs. This led to an increase in provisions, impacting mainly the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $1,052 million compared to $1,064 million, a decrease of $12 million. The provision for credit losses ratio on impaired loans was 57 basis points, an increase of two basis points. The decrease this quarter is due primarily to lower provisions in International retail in most markets and Canadian commercial portfolios. This was partly offset by provisions for one corporate account. Year-to-date Q2 2025 vs Year-to-date Q2 2024 The provision for credit losses was $2,560 million, compared to $1,969 million. The provision for credit losses ratio increased by 16 basis points to 68 basis points. Provision for credit losses on performing loans was $444 million, compared to $52 million. The higher provision this year was due primarily to the impact of significant deterioration in the macroeconomic outlook indicators, in the U.S., Canada and Mexico. The increase also reflects the continued uncertainty related to U.S. tariffs, mainly impacting the Canadian retail and commercial portfolios. The provision for credit losses on impaired loans was $2,116 million compared to $1,917 million, an increase of $199 million. The provision for credit losses ratio on impaired loans was 56 basis points, an increase of five basis points. The increase in provision this year was due primarily to higher impairment in Canadian retail across most products, as well as higher Canadian commercial provisions and one corporate account. Allowance for credit losses The total allowance for credit losses as at April 30, 2025, was $7,276 million compared to $7,080 million in the prior quarter. The allowance for credit losses ratio was 95 basis points, an increase of four basis points. The allowance for credit losses on loans was $7,084 million, an increase of $227 million compared to last quarter. The increase was driven by higher allowance for credit losses on performing loans in Canadian Banking due to the impact of a significant deterioration in the macroeconomic outlook indicators in the U.S., Canada and Mexico. In addition, the overall continued uncertainty related to U.S. tariffs increased performing provisions, mainly impacting the Canadian retail and commercial portfolios. Allowances on impaired loans were higher due primarily to higher provisions in Canadian Banking. This was partly offset by the impact of foreign currency translation of $121 million. The allowance for credit losses on performing loans was higher at $4,883 million compared to $4,667 million last quarter. The allowance for performing loans ratio was 66 basis points. The increase was due primarily to the continued unfavourable macroeconomic outlook and continued uncertainty related to U.S. tariffs, which mainly impacted Canadian Banking. This was partly offset by the impact of foreign currency translation of $77 million. The allowance on impaired loans increased by $11 million to $2,201 million from $2,190 million last quarter. The allowance for impaired loans ratio was 29 basis points, an increase of one basis point. The increase was due primarily to higher provisions in Canadian Banking, partly offset by the impact of foreign currency translation of $44 million. Impaired loans Gross impaired loans decreased to $6,849 million as at April 30, 2025, from $7,064 million last quarter. The decrease was due primarily to lower formations across most portfolios, as well as the impact of foreign currency translation. The gross impaired loan ratio was 90 basis points, a decrease of one basis point from last quarter. Net impaired loans in Canadian Banking were $1,498 million, a decrease of $90 million from last quarter, due primarily to lower retail formations. Net impaired loans in International Banking were $3,006 million, a decrease of $95 million from last quarter, due to the impact of foreign currency translation and lower formations. Net impaired loans in Global Banking and Markets were $84 million, a decrease of $52 million from last quarter due mainly to the write-off of one corporate account. Net impaired loans in Global Wealth Management were $60 million, an increase of $11 million from last quarter. Net impaired loans as a percentage of loans and acceptances were 0.61%, a decrease of two basis points from last quarter. Capital Ratios The Bank's CET1 capital ratio (1) was 13.2% as at April 30, 2025, an increase of approximately 30 basis points from the prior quarter, due primarily to internal capital generation, a lower shortfall in provisions to expected losses, reduced risk-weighted assets, and the Bank's completion of the sale of CrediScotia. The Bank's Tier 1 capital (1) and Total capital ratios (1) were 15.4% and 17.1%, respectively, as at April 30, 2025, representing increases of approximately 30 basis points from the prior quarter, due mainly to the above noted impacts to the CET1 capital ratio. The Leverage ratio (2) was 4.5% as at April 30, 2025, an increase of approximately 10 basis points from the prior quarter, from higher Tier 1 capital and lower leverage exposures. The TLAC ratio (3) was 30.3% as at April 30, 2025, an increase of approximately 150 basis points from the prior quarter, mainly from higher available TLAC. The TLAC Leverage ratio (3) was 8.9% as at April 30, 2025, an increase of approximately 40 basis points from the prior quarter, due primarily to higher available TLAC. As at April 30, 2025, the CET1, Tier 1, Total capital, Leverage, TLAC and TLAC Leverage ratios were well above OSFI's minimum capital ratios. Non-GAAP Measures The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below. Adjusted results and diluted earnings per share The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance. Reconciliation of reported and adjusted results and diluted earnings per share For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 ($ millions) 2025 2025 2024 2025 2024 Reported Results Net interest income $ 5,270 $ 5,173 $ 4,694 $ 10,443 $ 9,467 Non-interest income 3,810 4,199 3,653 8,009 7,313 Total revenue 9,080 9,372 8,347 18,452 16,780 Provision for credit losses 1,398 1,162 1,007 2,560 1,969 Non-interest expenses 5,110 6,491 4,711 11,601 9,450 Income before taxes 2,572 1,719 2,629 4,291 5,361 Income tax expense 540 726 537 1,266 1,070 Net income $ 2,032 $ 993 $ 2,092 $ 3,025 $ 4,291 Net income attributable to non-controlling interests in subsidiaries (NCI) 56 (154) 26 (98) 51 Net income attributable to equity holders 1,976 1,147 2,066 3,123 4,240 Net income attributable to preferred shareholders and other equity instrument holders 135 122 123 257 231 Net income attributable to common shareholders $ 1,841 $ 1,025 $ 1,943 $ 2,866 $ 4,009 Diluted earnings per share (in dollars) $ 1.48 $ 0.66 $ 1.57 $ 2.15 $ 3.25 Weighted average number of diluted common shares outstanding (millions) 1,246 1,250 1,228 1,250 1,225 Adjustments Adjusting items impacting non-interest income and total revenue (Pre-tax) (a) Divestitures and wind-down of operations $ 9 $ – $ – $ 9 $ – (b) Amortization of acquisition-related intangible assets 9 – – 9 – Total non-interest income and total revenue adjusting items (Pre-tax) 18 – – 18 – Adjusting items impacting non-interest expenses (Pre-tax) (a) Divestitures and wind-down of operations 26 1,362 – 1,388 – (b) Amortization of acquisition-related intangible assets 17 18 18 35 36 Total non-interest expense adjusting items (Pre-tax) 43 1,380 18 1,423 36 Total impact of adjusting items on net income before taxes 61 1,380 18 1,441 36 Impact of adjusting items on income tax expense Divestitures and wind-down of operations (15) (7) – (22) – Amortization of acquisition-related intangible assets (6) (4) (5) (10) (10) Total impact of adjusting items on income tax expense (21) (11) (5) (32) (10) Total impact of adjusting items on net income $ 40 $ 1,369 $ 13 $ 1,409 $ 26 Impact of adjusting items on NCI 16 (191) – (175) – Total impact of adjusting items on net income attributable to equity holders $ 56 $ 1,178 $ 13 $ 1,234 $ 26 Adjusted Results Net interest income $ 5,270 $ 5,173 $ 4,694 $ 10,443 $ 9,467 Non-interest income 3,828 4,199 3,653 8,027 7,313 Total revenue 9,098 9,372 8,347 18,470 16,780 Provision for credit losses 1,398 1,162 1,007 2,560 1,969 Non-interest expenses 5,067 5,111 4,693 10,178 9,414 Income before taxes 2,633 3,099 2,647 5,732 5,397 Income tax expense 561 737 542 1,298 1,080 Net income $ 2,072 $ 2,362 $ 2,105 $ 4,434 $ 4,317 Net income attributable to NCI 40 37 26 77 51 Net income attributable to equity holders 2,032 2,325 2,079 4,357 4,266 Net income attributable to preferred shareholders and other equity instrument holders 135 122 123 257 231 Net income attributable to common shareholders $ 1,897 $ 2,203 $ 1,956 $ 4,100 $ 4,035 Diluted earnings per share (in dollars) $ 1.52 $ 1.76 $ 1.58 $ 3.28 $ 3.27 Impact of adjustments on diluted earnings per share (in dollars) $ 0.04 $ 1.10 $ 0.01 $ 1.13 $ 0.02 Weighted average number of diluted common shares outstanding (millions) 1,250 1,250 1,228 1,250 1,225 The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted. a) Divestitures and wind-down of operations On February 28, 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing. For further details, please refer to Note 20 of the Q2 2025 Quarterly Report to Shareholders. In Q2 2025, the Bank recognized an additional impairment loss of $26 million ($8 million after-tax) on the agreement to sell banking operations in Colombia, Costa Rica and Panama for an approximately 20% ownership stake in the newly combined entity of Davivienda. This additional loss represents the change in the carrying value of the assets being sold, as well as changes in foreign currency. In Q1 2025, the Bank recognized an impairment loss of $1,362 million ($1,355 million after-tax) as the banking operations that are part of the transaction were classified as held-for-sale. These amounts were recorded in non-interest expenses - other. For further details, please refer to Note 20 of the Q2 2025 Quarterly Report to Shareholders. b) Amortization of acquisition-related intangible assets These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. These costs are recorded in non-interest expenses - depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments and non-interest income - net income from investments in associated corporations for the Other operating segment. For the three months ended April 30, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 613 $ 714 $ 401 $ 412 $ (108) $ 2,032 Net income attributable to non-controlling interests in subsidiaries (NCI) – 38 2 (1) 17 56 Reported net income attributable to equity holders 613 676 399 413 (125) 1,976 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 135 135 Reported net income attributable to common shareholders $ 613 $ 676 $ 399 $ 413 $ (260) $ 1,841 Adjustments: Adjusting items impacting non-interest income and total revenue (Pre-tax) Divestitures and wind-down of operations – – – – 9 9 Amortization of acquisition-related intangible assets – – – – 9 9 Total non-interest income adjustments (Pre-tax) – – – – 18 18 Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 26 26 Amortization of acquisition-related intangible assets 1 7 9 – – 17 Total non-interest expenses adjustments (Pre-tax) 1 7 9 – 26 43 Total impact of adjusting items on net income before taxes 1 7 9 – 44 61 Total impact of adjusting items on income tax expense (1) (2) (3) – (15) (21) Total impact of adjusting items on net income – 5 6 – 29 40 Impact of adjusting items on NCI – – – – 16 16 Total impact of adjusting items on net income attributable to equity holders – 5 6 – 45 56 Adjusted net income (loss) $ 613 $ 719 $ 407 $ 412 $ (79) $ 2,072 Adjusted net income attributable to equity holders $ 613 $ 681 $ 405 $ 413 $ (80) $ 2,032 Adjusted net income attributable to common shareholders $ 613 $ 681 $ 405 $ 413 $ (215) $ 1,897 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. For the three months ended January 31, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 913 $ 686 $ 409 $ 517 $ (1,532) $ 993 Net income attributable to non-controlling interests in subsidiaries (NCI) – 35 2 – (191) (154) Reported net income attributable to equity holders 913 651 407 517 (1,341) 1,147 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 122 122 Reported net income attributable to common shareholders $ 913 $ 651 $ 407 $ 517 $ (1,463) $ 1,025 Adjustments: Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 1,362 1,362 Amortization of acquisition-related intangible assets 1 8 9 – – 18 Total non-interest expenses adjustments (Pre-tax) 1 8 9 – 1,362 1,380 Total impact of adjusting items on net income before taxes 1 8 9 – 1,362 1,380 Total impact of adjusting items on income tax expense – (2) (2) – (7) (11) Total impact of adjusting items on net income 1 6 7 – 1,355 1,369 Impact of adjusting items on NCI – – – – (191) (191) Total impact of adjusting items on net income attributable to equity holders 1 6 7 – 1,164 1,178 Adjusted net income (loss) $ 914 $ 692 $ 416 $ 517 $ (177) $ 2,362 Adjusted net income attributable to equity holders $ 914 $ 657 $ 414 $ 517 $ (177) $ 2,325 Adjusted net income attributable to common shareholders $ 914 $ 657 $ 414 $ 517 $ (299) $ 2,203 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. For the six months ended April 30, 2025 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking Banking Management Markets Other Total Reported net income (loss) $ 1,526 $ 1,400 $ 810 $ 929 $ (1,640) $ 3,025 Net income attributable to non-controlling interests in subsidiaries (NCI) – 73 4 (1) (174) (98) Reported net income attributable to equity holders 1,526 1,327 806 930 (1,466) 3,123 Reported net income attributable to preferred shareholders and other equity instrument holders – – – – 257 257 Reported net income attributable to common shareholders $ 1,526 $ 1,327 $ 806 $ 930 $ (1,723) $ 2,866 Adjustments: Adjusting items impacting non-interest income and total revenue (Pre-tax) Divestitures and wind-down of operations – – – – 9 9 Amortization of acquisition-related intangible assets – – – – 9 9 Total non-interest income adjustments (Pre-tax) – – – – 18 18 Adjusting items impacting non-interest expenses (Pre-tax) Divestitures and wind-down of operations – – – – 1,388 1,388 Amortization of acquisition-related intangible assets 2 15 18 – – 35 Total non-interest expenses adjustments (Pre-tax) 2 15 18 – 1,388 1,423 Total impact of adjusting items on net income before taxes 2 15 18 – 1,406 1,441 Impact of adjusting items on income tax expense (1) (4) (5) – (22) (32) Total impact of adjusting items on net income 1 11 13 – 1,384 1,409 Impact of adjusting items on NCI – – – – (175) (175) Total impact of adjusting items on net income attributable to equity holders 1 11 13 – 1,209 1,234 Adjusted net income (loss) $ 1,527 $ 1,411 $ 823 $ 929 $ (256) $ 4,434 Adjusted net income attributable to equity holders $ 1,527 $ 1,338 $ 819 $ 930 $ (257) $ 4,357 Adjusted net income attributable to common shareholders $ 1,527 $ 1,338 $ 819 $ 930 $ (514) $ 4,100 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. For the six months ended April 30, 2024 (1) Global Global Canadian International Wealth Banking and ($ millions) Banking (2) Banking (2) Management (2) Markets (2) Other (2) Total Reported net income (loss) $ 1,866 $ 1,398 $ 676 $ 763 $ (412) $ 4,291 Net income attributable to non-controlling interests in subsidiaries (NCI) – 46 5 – – 51 Reported net income attributable to equity holders 1,866 1,352 671 763 (412) 4,240 Reported net income attributable to preferred shareholders and other equity instrument holders 1 1 1 1 227 231 Reported net income attributable to common shareholders $ 1,865 $ 1,351 $ 670 $ 762 $ (639) $ 4,009 Adjustments: Adjusting items impacting non-interest expenses (Pre-tax) Amortization of acquisition-related intangible assets 2 16 18 – – 36 Total non-interest expenses adjustments (Pre-tax) 2 16 18 – – 36 Total impact of adjusting items on net income before taxes 2 16 18 – – 36 Impact of adjusting items on income tax expense (1) (4) (5) – – (10) Total impact of adjusting items on net income 1 12 13 – – 26 Total impact of adjusting items on net income attributable to equity holders 1 12 13 – – 26 Adjusted net income (loss) $ 1,867 $ 1,410 $ 689 $ 763 $ (412) $ 4,317 Adjusted net income attributable to equity holders $ 1,867 $ 1,364 $ 684 $ 763 $ (412) $ 4,266 Adjusted net income attributable to common shareholders $ 1,866 $ 1,363 $ 683 $ 762 $ (639) $ 4,035 (1) Refer to Business Segment Review section of the Bank's Q2 2025 Quarterly Report to Shareholders. (2) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Reconciliation of International Banking's reported, adjusted and constant dollar results International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Reported Results For the three months ended For the six months ended ($ millions) January 31, 2025 April 30, 2024 (1) April 30, 2024 (1) Foreign Constant Foreign Constant Foreign Constant (Taxable equivalent basis) Reported exchange dollar Reported exchange dollar Reported exchange dollar Net interest income $ 2,169 $ (34) $ 2,203 $ 2,254 $ (6) $ 2,260 $ 4,494 $ 51 $ 4,443 Non-interest income 861 (15) 876 706 12 694 1,540 29 1,511 Total revenue 3,030 (49) 3,079 2,960 6 2,954 6,034 80 5,954 Provision for credit losses 602 (14) 616 566 (8) 574 1,140 8 1,132 Non-interest expenses 1,553 (22) 1,575 1,547 23 1,524 3,129 70 3,059 Income before taxes 875 (13) 888 847 (9) 856 1,765 2 1,763 Income tax expense 189 (2) 191 184 1 183 367 4 363 Net income $ 686 $ (11) $ 697 $ 663 $ (10) $ 673 $ 1,398 $ (2) $ 1,400 Net income attributable to non-controlling interests in subsidiaries (NCI) $ 35 $ – $ 35 $ 24 $ (2) $ 26 $ 46 $ (4) $ 50 Net income attributable to equity holders of the Bank $ 651 $ (11) $ 662 $ 639 $ (8) $ 647 $ 1,352 $ 2 $ 1,350 Other measures Average assets ($ billions) $ 229 $ (3) $ 232 $ 234 $ (2) $ 236 $ 235 $ 1 $ 234 Average liabilities ($ billions) $ 174 $ (3) $ 177 $ 182 $ – $ 182 $ 182 $ 2 $ 180 (1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Adjusted Results For the three months ended For the six months ended ($ millions) January 31, 2025 April 30, 2024 (1) April 30, 2024 (1) Constant Constant Constant Foreign dollar Foreign dollar Foreign dollar (Taxable equivalent basis) Adjusted exchange adjusted Adjusted exchange adjusted Adjusted exchange adjusted Net interest income $ 2,169 $ (34) $ 2,203 $ 2,254 $ (6) $ 2,260 $ 4,494 $ 51 $ 4,443 Non-interest income 861 (15) 876 706 12 694 1,540 29 1,511 Total revenue 3,030 (49) 3,079 2,960 6 2,954 6,034 80 5,954 Provision for credit losses 602 (14) 616 566 (8) 574 1,140 8 1,132 Non-interest expenses 1,545 (22) 1,567 1,539 23 1,516 3,113 70 3,043 Income before taxes 883 (13) 896 855 (9) 864 1,781 2 1,779 Income tax expense 191 (2) 193 186 1 185 371 3 368 Net income $ 692 $ (11) $ 703 $ 669 $ (10) $ 679 $ 1,410 $ (1) $ 1,411 Net income attributable to non-controlling interests in subsidiaries (NCI) $ 35 $ – $ 35 $ 24 $ (2) $ 26 $ 46 $ (4) $ 50 Net income attributable to equity holders of the Bank $ 657 $ (11) $ 668 $ 645 $ (8) $ 653 $ 1,364 $ 3 $ 1,361 (1) Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period's methodology. Refer to page 2 for further details. Return on equity Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity. Forward-looking statements From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2024 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof. By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate and globally; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; geopolitical risk (including the potential impact of new or elevated tariffs); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including the use of data and artificial intelligence in our business, and technology resiliency; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate change, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their impact on the global economy, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2024 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2024 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2025 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR+ website at and on the EDGAR section of the SEC's website at Shareholders Information Dividend and Share Purchase Plan Scotiabank's Shareholder Dividend and Share Purchase Plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent. Website The quarterly results conference call will take place on May 27, 2025, at 8:00 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-340-2217, or toll-free at 1-800-806-5484 using ID 5132667# (please call shortly before 8:00 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from May 27, 2025, to June 27, 2025, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free) and entering the access code 1341186#. Additional Information Investors: Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations: Scotiabank 40 Temperance Street, Toronto, Ontario Canada M5H 0B4 Telephone: (416) 775-0798 E-mail: [email protected] Global Communications: Scotiabank 40 Temperance Street, Toronto, Ontario Canada M5H 0B4 E-mail: [email protected] Shareholders: For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent: Computershare Trust Company of Canada 100 University Avenue, 8th Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 E-mail: [email protected] Co-Transfer Agent (USA) Computershare Trust Company, N.A. Telephone: 1-781-575-2000 E-mail: [email protected] Street Courier/Address: C/O: Shareholder Services 150 Royall Street Canton, MA, USA 02021 Mailing Address: PO Box 43078, Providence, RI, USA 02940-3078 For other shareholder enquiries, please contact the Corporate Secretary's Department: Scotiabank 40 Temperance Street Toronto, Ontario, Canada M5H 0B4 Telephone: (416) 866-3672 E-mail: [email protected] Rapport trimestriel disponible en français Le rapport trimestriel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.
Cision Canada
22-05-2025
- Business
- Cision Canada
TD Bank Group Reports Second Quarter 2025 Results Français
• Three and six months ended April 30, 2025 This quarterly Earnings News Release (ENR) should be read in conjunction with the Bank's unaudited second quarter 2025 Report to Shareholders for the three and six months ended April 30, 2025, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on our website at This ENR is dated May 21, 2025. Unless otherwise indicated, all amounts are expressed in Canadian dollars, and have been primarily derived from the Bank's Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been revised to conform with the presentation adopted in the current period. Additional information relating to the Bank is available on the Bank's website at as well as on SEDAR+ at and on the U.S. Securities and Exchange Commission's (SEC) website at (EDGAR filers section). Reported results conform with generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures. For additional information about the Bank's use of non-GAAP financial measures, refer to "Significant Events", "Non-GAAP and Other Financial Measures" in the "How We Performed", or "How Our Businesses Performed" sections of this document. SECOND QUARTER FINANCIAL HIGHLIGHTS, compared with the second quarter last year: YEAR-TO-DATE FINANCIAL HIGHLIGHTS, six months ended April 30, 2025, compared with the corresponding period last year: SECOND QUARTER ADJUSTMENTS (ITEMS OF NOTE) The second quarter reported earnings figures included the following items of note: Amortization of acquired intangibles of $43 million ($35 million after tax or 2 cents per share), compared with $72 million ($62 million after tax or 4 cents per share) in the second quarter last year. Acquisition and integration charges related to the Cowen acquisition of $34 million ($26 million after tax or 2 cents per share), compared with $102 million ($80 million after tax or 4 cents per share) in the second quarter last year. Impact from the terminated First Horizon Corporation (FHN) acquisition-related capital hedging strategy of $47 million ($35 million after tax or 2 cents per share), compared with $64 million ($48 million after tax or 3 cents per share) in the second quarter last year. U.S. balance sheet restructuring of $1,129 million ($847 million after tax or 49 cents per share). Restructuring charges of $163 million ($122 million after tax or 7 cents per share), compared with $165 million ($122 million after tax or 7 cents per share) under a previous program in the second quarter last year. Gain on sale of Schwab shares of $8,975 million ($8,568 million after tax or $4.92 per share). TORONTO, May 22, 2025 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the second quarter ended April 30, 2025. Reported earnings were $11.1 billion, up 334% compared with the second quarter last year, reflecting the Bank's sale of its remaining equity investment in The Charles Schwab Corporation ("Schwab"), and adjusted earnings were $3.6 billion, down 4%. "TD delivered strong results this quarter, with robust trading and fee income in our markets-driven businesses as well as deposit and loan growth in Canadian Personal and Commercial Banking," said Raymond Chun, Group President and CEO, TD Bank Group. "Our U.S. balance sheet restructuring is on track, and we are making consistent progress on AML remediation. We are well positioned as we enter the second half of the year, and we continue to strengthen our Bank by investing in the client experience, enhancing our digital capabilities, and simplifying how we operate to achieve greater speed and execution excellence." Canadian Personal and Commercial Banking results driven by continued volume growth in loans and deposits Canadian Personal and Commercial Banking net income was $1,668 million, a decrease of 4% compared with the second quarter last year, reflecting higher provisions for credit losses (PCL) and non-interest expenses, partially offset by higher revenue. Revenue increased 3%, primarily reflecting loan and deposit growth. The Canadian Personal Bank reported another quarter of solid acquisition growth, including a record in digital day-to-day sales. The Canadian Personal Bank also delivered a strong quarter of credit card growth and referral volumes to Wealth and Business Banking. This quarter, Business Banking reported strong commercial loan growth, record second-quarter retail originations in TD Auto Finance (TDAF), and robust customer acquisition in Small Business Banking. In addition, TDAF scored highest in two segments of the J.D. Power 2025 Canada Dealer Financing Satisfaction Study, ranking #1 for Dealer Satisfaction among Non-Prime and Prime Credit Non-Captive Automotive Financing Lenders 1. The U.S. Retail Bank delivered continued momentum and progress on balance sheet restructuring U.S. Retail reported net income for the quarter was $120 million (US$89 million), down 76% (77% in U.S. dollars), compared with the second quarter last year. On an adjusted basis, net income was $967 million (US$680 million), down 19% (23% in U.S. dollars). Reported net income for the quarter from the Bank's prior investment in Schwab was $78 million (US$54 million), a decrease of 57% (60% in U.S. dollars), compared with the second quarter last year reflecting the Bank's sale of its remaining equity investment in Schwab this quarter. The U.S. Retail Bank, which excludes the Bank's prior investment in Schwab, reported net income was $42 million (US$35 million), down 87% (86% in U.S. dollars), compared with the second quarter last year, primarily reflecting the impact of balance sheet restructuring activities, higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher PCL, partially offset by the impact of charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program and FDIC special assessment charge in the second quarter last year. On an adjusted basis, net income was $889 million (US$626 million), down 13% (16% in U.S. dollars) compared with the second quarter last year, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher PCL, partially offset by higher revenue. This quarter, the U.S. Retail Bank demonstrated resilience and delivered continued momentum, with its sixth quarter of consumer deposit growth and double-digit growth in U.S. Wealth assets year over year. This quarter, TD Bank, America's Most Convenient Bank ®, ranked #1 in Florida for retail banking customer satisfaction in the J.D. Power 2025 U.S. Retail Banking Satisfaction Study 2. Wealth Management and Insurance delivered strong results across diversified businesses Wealth Management and Insurance net income was $707 million, an increase of 14% compared with the second quarter last year, with strong revenue growth in both businesses. This quarter's revenue growth of 12% reflected higher insurance premiums, higher fee-based revenue, and transaction revenue. This quarter, Wealth Management and Insurance continued to invest in client-centric innovation and deliver growth. TD Asset Management (TDAM) launched the TD Greystone Infrastructure iCapital Canada Access Fund, expanding access to direct private infrastructure to retail investors. TDAM also added more than $5 billion in net institutional assets, demonstrating its strength as the #1 institutional asset manager in Canada among the Big 5 banks. The TD Private Wealth Management and TD Financial Planning businesses delivered strong net asset growth this quarter. Additionally, TD Insurance continued to deliver double-digit premium growth and further increased its market share 3. Wholesale Banking delivered record revenue including fees earned from TD ' s sale of its remaining equity investment in Schwab Wholesale Banking reported net income for the quarter was $419 million, an increase of 16% compared with the second quarter last year, primarily reflecting higher revenue, partially offset by higher PCL and non-interest expenses. On an adjusted basis, net income was $445 million, an increase of 1% compared with the second quarter last year. Revenue for the quarter was a record $2,129 million, an increase of 10% compared with the second quarter last year, primarily reflecting higher trading-related revenue, and underwriting fees, including those associated with the Bank's sale of its remaining equity investment in Schwab. This quarter, Wholesale Banking executed the largest sole-managed convertible offering in the U.S. since 2020, demonstrating the strength of its capabilities and market influence. Wholesale Banking was voted Overall Commodities Dealer in the Energy Risk Commodity Rankings 2025, run by reflecting its global leadership, reliability, and client trust. Capital TD's Common Equity Tier 1 Capital ratio was 14.9%. Conclusion "We are operating in a fluid macroeconomic environment. As we navigate this period of uncertainty, TD is very well-capitalized, prepared for a broad range of economic scenarios, and remains focused on the needs and goals of our clients," added Chun. "I want to thank our colleagues for their continued efforts as we further strengthen our Bank and build for the future." The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements" on page 3. _________________________________ 1 TD Auto Finance received the highest score in the retail non-captive non-prime segment and the retail non-captive prime segment in the J.D. Power 2024-2025 Canada Dealer Financing Satisfaction Studies, which measure Canadian auto dealers' satisfaction with their auto finance providers. Visit for more details. 2 TD Bank received the highest score in a tie in Florida in the J.D. Power 2025 U.S. Retail Banking Satisfaction Study, which measures customers' satisfaction with their primary bank. Visit for more details. 3 Rankings based on data provided by OSFI, Insurers and the Insurance Bureau of Canada for the year ended December 31, 2024. Excludes public insurance regimes (ICBC, MPI and SAF). Caution Regarding Forward-Looking Statements From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management's Discussion and Analysis ("2024 MD&A") in the Bank's 2024 Annual Report under the heading "Economic Summary and Outlook", under the headings "Key Priorities for 2025" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, and under the heading "2024 Accomplishments and Focus for 2025" for the Corporate segment, and in other statements regarding the Bank's objectives and priorities for 2025 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank's anticipated financial performance. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "intend", "estimate", "forecast", "outlook", "plan", "goal", "target", "possible", "potential", "predict", "project", "may", and "could" and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements. By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank's control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause, individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including technology, cyber security, process, systems, data, third-party, fraud, infrastructure, insider and conduct), model, insurance, liquidity, capital adequacy, compliance and legal, financial crime, reputational, environmental and social, and other risks. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operates; geopolitical risk (including policy, trade and tax-related risks and the potential impact of any new or elevated tariffs or any retaliatory tariffs); inflation, interest rates and recession uncertainty; regulatory oversight and compliance risk; risks associated with the Bank's ability to satisfy the terms of the global resolution of the investigations into the Bank's U.S. Bank Secrecy Act (BSA)/anti-money laundering (AML) program; the impact of the global resolution of the investigations into the Bank's U.S. BSA/AML program on the Bank's businesses, operations, financial condition, and reputation; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other strategic plans; technology and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank's technologies, systems and networks, those of the Bank's customers (including their own devices), and third parties providing services to the Bank; data risk; model risk; fraud activity; insider risk; conduct risk; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third-parties; the impact of new and changes to, or application of, current laws, rules and regulations, including without limitation consumer protection laws and regulations, tax laws, capital guidelines and liquidity regulatory guidance; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; environmental and social risk (including climate-related risk); exposure related to litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes in foreign exchange rates, interest rates, credit spreads and equity prices; downgrade, suspension or withdrawal of ratings assigned by any rating agency, the value and market price of the Bank's common shares and other securities may be impacted by market conditions and other factors; the interconnectivity of financial institutions including existing and potential international debt crises; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results. For more detailed information, please refer to the "Risk Factors and Management" section of the 2024 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings "Significant Events", "Significant and Subsequent Events" or "Update on U.S. Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Program Remediation and Enterprise AML Program Improvement Activities" in the relevant MD&A, which applicable releases may be found on All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank's forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2024 MD&A under the headings "Economic Summary and Outlook" and "Significant Events", under the headings "Key Priorities for 2025" and "Operating Environment and Outlook" for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking segments, and under the heading "2024 Accomplishments and Focus for 2025" for the Corporate segment, each as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable). Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release. TABLE 1: FINANCIAL HIGHLIGHTS (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Results of operations Total revenue – reported $ 22,937 $ 14,049 $ 13,819 $ 36,986 $ 27,533 Total revenue – adjusted 1 15,138 15,030 13,883 30,168 27,654 Provision for (recovery of) credit losses 1,341 1,212 1,071 2,553 2,072 Insurance service expenses (ISE) 1,417 1,507 1,248 2,924 2,614 Non-interest expenses – reported 8,139 8,070 8,401 16,209 16,431 Non-interest expenses – adjusted 1 7,908 7,983 7,084 15,891 14,209 Net income – reported 11,129 2,793 2,564 13,922 5,388 Net income – adjusted 1 3,626 3,623 3,789 7,249 7,426 Financial position (billions of Canadian dollars) Total loans net of allowance for loan losses $ 936.4 $ 965.3 $ 928.1 $ 936.4 $ 928.1 Total assets 2,064.3 2,093.6 1,966.7 2,064.3 1,966.7 Total deposits 1,267.7 1,290.5 1,203.8 1,267.7 1,203.8 Total equity 126.1 119.0 112.0 126.1 112.0 Total risk-weighted assets 2 624.6 649.0 602.8 624.6 602.8 Financial ratios Return on common equity (ROE) – reported 3 39.1 % 10.1 % 9.5 % 24.8 % 10.2 % Return on common equity – adjusted 1 12.3 13.2 14.5 12.7 14.3 Return on tangible common equity (ROTCE) 1,3 48.0 13.4 13.0 31.3 13.9 Return on tangible common equity – adjusted 1 15.0 17.2 19.2 15.9 18.9 Efficiency ratio – reported 3 35.5 57.4 60.8 43.8 59.7 Efficiency ratio – adjusted, net of ISE 1,3,4 57.6 59.0 56.1 58.3 56.7 Provision for (recovery of) credit losses as a % of net average loans and acceptances 0.58 0.50 0.47 0.54 0.45 Common share information – reported (Canadian dollars) Per share earnings Basic $ 6.28 $ 1.55 $ 1.35 $ 7.81 $ 2.90 Diluted 6.27 1.55 1.35 7.81 2.89 Dividends per share 1.05 1.05 1.02 2.10 2.04 Book value per share 3 66.75 61.61 57.69 66.75 57.69 Closing share price (TSX) 5 88.09 82.91 81.67 88.09 81.67 Shares outstanding (millions) Average basic 1,740.5 1,749.9 1,762.8 1,745.3 1,769.8 Average diluted 1,741.7 1,750.7 1,764.1 1,746.3 1,771.2 End of period 1,722.5 1,751.7 1,759.3 1,722.5 1,759.3 Market capitalization (billions of Canadian dollars) $ 151.7 $ 145.2 $ 143.7 $ 151.7 $ 143.7 Dividend yield 3 5.0 % 5.4 % 5.1 % 5.2 % 5.0 % Dividend payout ratio 3 16.6 67.8 75.6 26.8 70.3 Price-earnings ratio 3 9.1 17.5 13.8 9.1 13.8 Total shareholder return (1 year) 3 13.6 6.9 4.5 13.6 4.5 Common share information – adjusted (Canadian dollars) Per share earnings Basic $ 1.97 $ 2.02 $ 2.04 $ 3.99 $ 4.05 Diluted 1.97 2.02 2.04 3.99 4.04 Dividend payout ratio 53.0 % 51.9 % 49.9 % 52.4 % 50.3 % Price-earnings ratio 11.4 10.6 10.5 11.4 10.5 Capital ratios 3 Common Equity Tier 1 Capital ratio 14.9 % 13.1 % 13.4 % 14.9 % 13.4 % Tier 1 Capital ratio 16.6 14.7 15.1 16.6 15.1 Total Capital ratio 18.5 17.0 17.1 18.5 17.1 Leverage ratio 4.7 4.2 4.3 4.7 4.3 TLAC ratio 31.0 29.5 30.6 31.0 30.6 TLAC Leverage ratio 8.7 8.5 8.7 8.7 8.7 1 The Toronto-Dominion Bank ("TD" or the "Bank") prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as the "reported" results. The Bank also utilizes non-GAAP financial measures such as "adjusted" results and non-GAAP ratios to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for "items of note". Refer to "Significant Events", "How We Performed" or "How Our Businesses Performed" sections of this document for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. 2 These measures have been included in this document in accordance with the Office of the Superintendent of Financial Institutions Canada's (OSFI's) Capital Adequacy Requirements, Leverage Requirements, and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the "Capital Position" section in the second quarter of 2025 Management's Discussion and Analysis (MD&A) for further details. 3 For additional information about these metrics, refer to the Glossary in the second quarter of 2025 MD&A, which is incorporated by reference. 4 Efficiency ratio – adjusted, net of ISE is calculated by dividing adjusted non‑interest expenses by adjusted total revenue, net of ISE. Adjusted total revenue, net of ISE – Q2 2025: $13,721 million, Q1 2025: $13,523 million, Q2 2024: $12,635 million, 2025 YTD: $27,244 million, 2024 YTD: $25,040 million. 5 Toronto Stock Exchange closing market price. SIGNIFICANT EVENTS a) S ale of Schwab Shares On February 12, 2025, the Bank sold its entire remaining equity investment in the Charles Schwab Corporation ("Schwab") through a registered offering and share repurchase by Schwab. Immediately prior to the sale, TD held 184.7 million shares of Schwab's common stock, representing 10.1% economic ownership. The sale of the shares resulted in proceeds of approximately $21.0 billion (US$14.6 billion) and the Bank recognized a net gain on sale of approximately $8.6 billion (US$5.8 billion). This gain is net of the release of related cumulative foreign currency translation from AOCI, the release of AOCI on designated net investment hedging items, direct transaction costs, and taxes. The Bank also recognized $184 million of underwriting fees in its Wholesale segment as a result of TD Securities acting as a lead bookrunner on the transaction. The transaction increased Common Equity Tier 1 (CET1) capital by approximately 238 basis points (bps). The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale. The Bank continues to have a business relationship with Schwab through the IDA Agreement. b) Restructuring Charges The Bank initiated a new restructuring program in the second quarter of 2025 to reduce its cost base and achieve greater efficiency. In connection with this program, the Bank incurred $163 million pre-tax of restructuring charges in the second quarter of 2025 which primarily relate to real estate optimization, employee severance and other personnel-related costs, and asset impairment and other rationalization, including certain business wind-downs. The Bank expects to incur total restructuring charges of $600 million to $700 million pre-tax over the next several quarters, to generate savings of approximately $100 million pre-tax in fiscal 2025 and fully realized annual savings of $550 million to $650 million pre-tax, including savings from an approximate 2% workforce reduction 4. UPDATE ON U.S. BANK SECRECY ACT (BSA)/ANTI-MONEY LAUNDERING (AML) PROGRAM REMEDIATION AND ENTERPRISE AML PROGRAM IMPROVEMENT ACTIVITIES As previously disclosed in the Bank's 2024 MD&A, on October 10, 2024, the Bank announced that, following active cooperation and engagement with authorities and regulators, it reached a resolution of previously disclosed investigations related to its U.S. BSA/AML compliance programs (the "Global Resolution"). The Bank and certain of its U.S. subsidiaries consented to orders with the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Financial Crimes Enforcement Network (FinCEN) and entered into plea agreements with the Department of Justice (DOJ), Criminal Division, Money Laundering and Asset Recovery Section and the United States Attorney's Office for the District of New Jersey. The Bank is focused on meeting the terms of the consent orders and plea agreements, including meeting its requirements to remediate the Bank's U.S. BSA/AML programs. In addition, the Bank is also undertaking several improvements to the Bank's enterprise-wide AML/Anti-Terrorist Financing and Sanctions Programs ("Enterprise AML Program"). For additional information on the Global Resolution, the Bank's U.S. BSA/AML program remediation activities, the Bank's Enterprise AML Program improvement activities, and the risks associated with the foregoing, see the "Significant Events – Global Resolution of the Investigations into the Bankְ's U.S. BSA/AML Program" and "Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank's U.S. BSA/AML Program" sections of the Bank's 2024 MD&A. Remediation of the U.S. BSA/AML Program The Bank remains focused on remediating its U.S. BSA/AML program to meet the requirements of the Global Resolution. As noted in the Bank's first quarter 2025 MD&A, the Bank continues to expect to have the majority of its management remediation actions implemented in calendar 2025 with remaining management implementations planned for calendar 2026 and into calendar 2027. Sustainability and testing activities are planned for calendar 2026 and calendar 2027 following management implementations, and the Bank is targeting to have the Suspicious Activity Report lookback completed in calendar 2027 per the OCC consent order. For fiscal 2025, the Bank continues to expect U.S. BSA/AML remediation and related governance and control investments of approximately US$500 million pre-tax and expects similar investments in fiscal 2026 5. As noted in the Bank's 2024 MD&A, all management remediation actions will be subject to validation by the Bank's internal audit function, followed by the review and acceptance by the appointed monitor, demonstrated sustainability, and, ultimately, the review and approval of the Bank's U.S. banking regulators and the DOJ. Following such independent reviews, testing, and validation, there could be additional remediation related implementations required from the Bank that would take place after calendar 2027. In addition, as the Bank undertakes the lookback reviews, the Bank may be required to further expand the scope of the review, either in terms of the subjects being addressed and/or the time period reviewed. The following graph illustrates the Bank's expected remediation plan and progress on a calendar year basis, based on its work to date: As noted in the Bank's 2024 MD&A including in the "Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank's U.S. BSA/AML Program" section thereof, the Bank's remediation timeline is based on the Bank's current plans, as well as assumptions related to the duration of planning activities, including the completion of external benchmarking and lookback reviews. The Bank's ability to meet its planned remediation milestones assumes that the Bank will be able to successfully execute against its U.S. BSA/AML remediation program plan, which is subject to inherent risks and uncertainties including the Bank's ability to attract and retain key employees, the ability of third parties to deliver on their contractual obligations, and the successful development and implementation of required technology solutions. Furthermore, the execution of the U.S. BSA/AML remediation plan, including these planned milestones, will not be entirely within the Bank's control because of various factors such as (i) the requirement to obtain regulatory approval or non-objection before proceeding with various steps, and (ii) the requirement for the various deliverables to be acceptable to the regulators and/or the monitor. As of the date hereof, the Bank believes that it and its applicable U.S. subsidiaries have taken such actions as are required of them to date under the terms of the consent orders and plea agreements and is not aware of them being in breach of the same. _________________________ 4 The Bank's expectations regarding the restructuring program are subject to inherent uncertainties and are based on the Bank's assumptions regarding certain factors, including rate of natural attrition, talent re-deployment opportunities, years-of-service, execution timing of actions, decisions to expand on or reduce the restructuring actions (e.g., scope of real estate optimization, additional rationalizations), and foreign exchange translation impacts. Refer to the "Risk Factors That May Affect Future Results" section of this document for additional information about risks and uncertainties that may impact the Bank's estimates. 5 The total amount expected to be spent on remediation and governance and control investments is subject to inherent uncertainties and may vary based on the scope of work in the U.S. BSA/AML remediation plan which could change as a result of additional findings that are identified as work progresses as well as the Bank's ability to successfully execute against the U.S. BSA/AML remediation program in accordance with the U.S. Retail segment's fiscal 2025 and medium term plan. While substantial work remains, in addition to the work that has been completed and previously outlined in the Bank's 2024 MD&A and first quarter 2025 MD&A, the Bank continued to make progress on remediating and strengthening its U.S. BSA/AML program during the second fiscal quarter of 2025, including: 1) incremental improvements to transaction monitoring capabilities with the implementation of the final round of planned scenarios into the Bank's U.S. transaction monitoring system as set out in our U.S. BSA/AML program remediation plan; 2) the continued implementation of enhanced, streamlined investigation practices including the introduction of updated procedures for analyzing customer activity; 3) progress with data staging in relation to lookback reviews; 4) the implementation of further enhancements to cash deposit requirements at store locations; 5) updated policies, including those with respect to Know Your Customer activities, and revised escalation standards across all of U.S. Financial Crime Risk Management; and 6) further hiring of U.S. investigative analysts, as planned, to help manage higher case volumes resulting from the additional monitoring capabilities that have been implemented. For the remainder of fiscal 2025, the Bank's focus will be on implementing incremental enhancements to its transaction monitoring and reporting controls, including: 1) continued improvements to transaction monitoring standards, procedures and training; 2) the implementation of additional reporting and controls for cash management activities; 3) further progress with data staging and analysis in relation to lookback reviews; and 4) the deployment of machine learning analysis capabilities beginning in the third fiscal quarter of 2025. As noted in the Bank's 2024 MD&A, to help ensure that the Bank can continue to support its customers' financial needs in the U.S. while not exceeding the limitation on the combined total assets of the U.S. Bank, the Bank is focused on executing multiple U.S. balance sheet restructuring actions in fiscal 2025. Refer to the "Update on U.S. Balance Sheet Restructuring" section of the U.S. Retail segment section for additional information on these actions. For additional information about expenses associated with the Bank's U.S. BSA/AML program remediation activities, refer to the U.S. Retail segment section. Assessment and Strengthening of the Bank's Enterprise AML Program The Bank is continuing to implement improvements to the Enterprise AML Program and continues to target implementation of the majority of its Enterprise AML Program remediation and enhancement actions by the end of calendar 2025. As noted in the Bank's first quarter 2025 MD&A, once implemented, those remediation and enhancement actions will then be subject to internal review, challenge and validation of the activities. Following the end of the first fiscal quarter, the Financial Transactions and Reports Analysis Centre of Canada ("FINTRAC") commenced a review of certain remediation steps that the Bank has taken to date to address the FINTRAC violations. This review is ongoing, and subject to the outcome, may result in additional regulatory actions. As noted in the "Risk Factors That May Affect Future Results – Global Resolution of the Investigations into the Bank's U.S. BSA/AML Program" section of the Bank's 2024 MD&A, the remediation and enhancement of the Enterprise AML program is exposed to similar risks as noted in respect of the remediation of the Bank's U.S. BSA/AML program. In particular, as the Bank continues its remediation and improvement activities of the Enterprise AML Program, it expects an increase in identification of reportable transactions and/or events, which will add to the operational backlog in the Bank's Financial Crime Risk Management (FCRM) investigations processing that the Bank currently faces, but is working towards remediating, across the enterprise. In addition, it continues to assess (i) whether issues that have been, and continue to be, identified in the U.S. BSA/AML program exist in the Enterprise AML Program in Canada, Europe or Asia, and (ii) the impact of such issues. The results of these assessments may also broaden the scope of the remediation and improvements required for the Enterprise AML Program. Furthermore, the Bank's regulators or law enforcement agencies may identify other issues with the Bank's Enterprise AML Program, which may result in additional regulatory actions. While substantial work remains, the Bank has made progress on the improvements to the Enterprise AML Program over the second fiscal quarter of 2025, including: 1) new reporting on workloads, which has improved our ability to forecast resource needs and expanded our FCRM program reporting to the Bank's Boards and senior management; 2) launching technology initiatives to consolidate electronic document and data availability, to improve quality and timeliness of monitoring and oversight of escalated AML issues; 3) continued improvements in the Bank's process and procedural guidance, reinforced with targeted training across FCRM and individual business lines; and 4) hiring of additional investigative analysts, to help improve management of case volumes, with further expansion planned over the rest of the fiscal year. For the remainder of fiscal 2025, the Bank's focus will be on the following improvements to the Enterprise AML Program: 1) the Enterprise-wide adoption of a new centralized case management tool that is already in production in the U.S., with the goal of strengthening oversight and investigations of identified FCRM risks; and 2) the ongoing rollout of an enhanced risk assessment methodology and tools to strengthen identification and measurement of FCRM risks across clients, products, and transactions, supported by improved data capabilities. HOW WE PERFORMED ECONOMIC SUMMARY AND OUTLOOK The global economic outlook has weakened in the wake of the historically elevated import tariffs levied by the United States on its trading partners around the world. The future path of tariff policy is highly uncertain and financial market volatility has risen. At the same time, inflation expectations have increased as the U.S. tariffs – and retaliatory measures – are expected to raise prices and complicate global supply chains. This puts global central banks in the challenging position of gauging whether any resulting inflationary pressures are one-time or prove persistent. TD Economics still expects future interest rate reductions, but uncertainty on the outlook has increased. After growing at a healthy 2.8% annualized pace in calendar 2024, the U.S. economy recorded a small contraction in the first quarter of calendar 2025. Economic growth was held back by a surge in goods imports, as businesses rushed to stockpile ahead of tariffs. American households and businesses rushed to buy big-ticket items such as cars and equipment before tariffs either lead to increased prices or made certain goods more difficult to obtain. This boosted growth in the domestic economy to a 3% annualized pace in the first quarter of calendar 2025. These trends are likely to reverse in the second calendar quarter, putting the U.S. economy on track to record a modest improvement in economic growth even as momentum in the domestic economy slows. TD Economics expects that U.S. tariffs will be partially rolled back over the second half of 2025 as trade deals are reached between the U.S. and many other countries. As a result of heightened uncertainty and tariffs, TD Economics has substantially downgraded its forecast for U.S. economic growth in calendar 2025, followed by only a modest recovery next calendar year. Based on April 2025 data, the U.S. job market has remained resilient so far this year. The unemployment rate has held largely steady at around 4.2%. The U.S. economy had been on track for a "soft landing" only a few months ago, where inflation pressures were expected to gradually drift lower. The rise in tariffs has raised uncertainty on whether a soft landing is still likely, and the Federal Reserve has kept interest rates unchanged as it assesses the impact of the tariffs on the economy. TD Economics expects that by July 2025, the U.S. central bank will have sufficient clarity around the economic outlook to resume monetary easing, with the federal funds rate expected to be lowered to 3.50-3.75% by the end of calendar 2025 – a level still on the restrictive side. Canada's economic outlook for 2025 has softened due to the impact of U.S. tariffs. Canada's economy had expanded at a solid pace in calendar 2024, boosted by strong population gains and lower interest rates. U.S tariffs on Canada have not been as severe as initially threatened, however, the effect of elevated uncertainty about tariff policy has resulted in a deterioration in business confidence about the future, which is expected to dampen business investment and weigh on Canada's economy for some time. TD Economics expects Canada's economy to slip into a shallow recession beginning in the second quarter of calendar 2025, before likely gaining some modest traction by year end. This soft backdrop is expected to lift the unemployment rate from 6.9% in April to 7.2% by (calendar) year end. TD Economics also expects population growth to slow sharply over the next few years as immigration policy changes restrict inflows. The Canadian central bank lowered its overnight rate further to 2.75% in March 2025, before pausing to assess the impact of U.S. tariffs on the economic outlook. TD Economics expects the Bank of Canada to continue trimming interest rates, reaching 2.25% by the third quarter of calendar 2025. Concerns about the U.S. economic outlook and larger U.S. government deficits have weakened the U.S. dollar, lifting the Canadian dollar. TD Economics expects the Canadian dollar will trade in the 72 to 73 U.S. cent range over the next few quarters, although that is likely to be influenced by the path of U.S. trade policy. H OW THE BANK REPORTS The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as "reported" results. Non-GAAP and Other Financial Measures In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios, supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as "adjusted" results, are utilized to assess the Bank's businesses and to measure the Bank's overall performance. To arrive at adjusted results, the Bank adjusts for "items of note" from reported results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted net interest margin, adjusted basic and diluted earnings per share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank believes that non-GAAP financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank's performance. Non-GAAP financial measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. Supplementary financial measures depict the Bank's financial performance and position, and capital management measures depict the Bank's capital position, and both are explained in this document where they first appear. U.S. Strategic Cards The Bank's U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank's Interim Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate's reported net income (loss). The net income included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements. Investment in The Charles Schwab Corporation and IDA Agreement On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab through a registered offering and share repurchase by Schwab. For further details, refer to the "Significant Events" section of this document. The Bank discontinued recording its share of earnings available to common shareholders from its investment in Schwab following the sale. Prior to the sale, the Bank accounted for its investment in Schwab using the equity method. The U.S. Retail segment reflected the Bank's share of net income from its investment in Schwab. The Corporate segment net income (loss) included amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab. The Bank's share of Schwab's earnings available to common shareholders was reported with a one-month lag. For further details, refer to Note 12 of the Bank's 2024 Annual Consolidated Financial Statements. On November 25, 2019, the Bank and Schwab signed an insured deposit account agreement (the "2019 Schwab IDA Agreement"), with an initial expiration date of July 1, 2031. Under the 2019 Schwab IDA Agreement, starting July 1, 2021, Schwab had the option to reduce the deposits by up to US$10 billion per year (subject to certain limitations and adjustments), with a floor of US$50 billion. In addition, Schwab requested some further operational flexibility to allow for the sweep deposit balances to fluctuate over time, under certain conditions and subject to certain limitations. On May 4, 2023, the Bank and Schwab entered into an amended insured deposit account agreement (the "2023 Schwab IDA Agreement" or the "Schwab IDA Agreement"), which replaced the 2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab IDA Agreement, the Bank continues to make sweep deposit accounts available to clients of Schwab. Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits are designated as floating-rate obligations. In comparison to the 2019 Schwab IDA Agreement, the 2023 Schwab IDA Agreement extends the initial expiration date by three years to July 1, 2034 and provides for lower deposit balances in its first six years, followed by higher balances in the later years. Specifically, until September 2025, the aggregate FROA will serve as the floor. Thereafter, the floor will be set at US$60 billion. In addition, Schwab had the option to buy down up to $6.8 billion (US$5 billion) of FROA by paying the Bank certain fees in accordance with the 2023 Schwab IDA Agreement, subject to certain limits. During the first quarter of fiscal 2024, Schwab exercised its option to buy down the remaining $0.7 billion (US$0.5 billion) of the US$5 billion FROA buydown allowance and paid $32 million (US$23 million) in termination fees to the Bank in accordance with the 2023 Schwab IDA Agreement. By the end of the first quarter of fiscal 2024, Schwab had completed its buydown of the full US$5 billion FROA buydown allowance and had paid a total of $337 million (US$250 million) in termination fees to the Bank. The fees were intended to compensate the Bank for losses incurred from discontinuing certain hedging relationships and for lost revenues. The net impact was recorded in net interest income. Subsequent to the sale of the Bank's entire remaining equity investment in Schwab, the Bank continues to have a business relationship with Schwab through the IDA Agreement. Refer to Note 27 of the Bank's 2024 Annual Consolidated Financial Statements for further details on the Schwab IDA Agreement. S trategic Review Update The Bank is conducting a strategic review. The strategic review is organized across four pillars: 1) Adjust business mix and capital allocation – re-allocate capital and disproportionately invest in targeted segments; 2) Simplify the portfolio and drive ROE focus – simplify, optimize, and reposition portfolios to drive returns; 3) Evolve the Bank and accelerate capabilities – simplify operating model and strengthen capabilities to deliver exceptional client experiences; and 4) Innovate to drive efficiency and operational excellence – redesign operations and processes. The Bank will provide an update on its strategic review, and on the Bank's medium-term financial targets, in the second half of 2025. For additional information on current initiatives that are part of the strategic review, refer to "Significant Events – Sale of Schwab Shares", "How Our Businesses Performed – U.S. Retail – Update on U.S. Balance Sheet Restructuring Activities", and "Significant Events – Restructuring Charges" in this document. The following table provides the operating results on a reported basis for the Bank. TABLE 2: OPERATING RESULTS – Reported (millions of Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Net interest income $ 8,125 $ 7,866 $ 7,465 $ 15,991 $ 14,953 Non-interest income 14,812 6,183 6,354 20,995 12,580 Total revenue 22,937 14,049 13,819 36,986 27,533 Provision for (recovery of) credit losses 1,341 1,212 1,071 2,553 2,072 Insurance service expenses 1,417 1,507 1,248 2,924 2,614 Non-interest expenses 8,139 8,070 8,401 16,209 16,431 Income before income taxes and share of net income from investment in Schwab 12,040 3,260 3,099 15,300 6,416 Provision for (recovery of) income taxes 985 698 729 1,683 1,363 Share of net income from investment in Schwab 74 231 194 305 335 Net income – reported 11,129 2,793 2,564 13,922 5,388 Preferred dividends and distributions on other equity instruments 200 86 190 286 264 Net income attributable to common shareholders $ 10,929 $ 2,707 $ 2,374 $ 13,636 $ 5,124 The following table provides a reconciliation between the Bank's adjusted and reported results. For further details refer to the "Significant Events", "How We Performed", or "How Our Businesses Performed" sections. TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income (millions of Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Operating results – adjusted Net interest income 1,2 $ 8,208 $ 7,920 $ 7,529 $ 16,128 $ 15,074 Non-interest income 3 6,930 7,110 6,354 14,040 12,580 Total revenue 15,138 15,030 13,883 30,168 27,654 Provision for (recovery of) credit losses 1,341 1,212 1,071 2,553 2,072 Insurance service expenses 1,417 1,507 1,248 2,924 2,614 Non-interest expenses 4 7,908 7,983 7,084 15,891 14,209 Income before income taxes and share of net income from investment in Schwab 4,472 4,328 4,480 8,800 8,759 Provision for (recovery of) income taxes 929 962 920 1,891 1,792 Share of net income from investment in Schwab 5 83 257 229 340 459 Net income – adjusted 3,626 3,623 3,789 7,249 7,426 Preferred dividends and distributions on other equity instruments 200 86 190 286 264 Net income available to common shareholders – adjusted 3,426 3,537 3,599 6,963 7,162 Pre-tax adjustments for items of note Amortization of acquired intangibles 6 (43) (61) (72) (104) (166) Acquisition and integration charges related to the Schwab transaction 4,5 – – (21) – (53) Share of restructuring and other charges from investment in Schwab 5 – – – – (49) Restructuring charges 4 (163) – (165) (163) (456) Acquisition and integration-related charges 4 (34) (52) (102) (86) (219) Impact from the terminated FHN acquisition-related capital hedging strategy 1 (47) (54) (64) (101) (121) Gain on sale of Schwab shares 3 8,975 – – 8,975 – U.S. balance sheet restructuring 2,3 (1,129) (927) – (2,056) – Civil matter provision 4 – – (274) – (274) FDIC special assessment 4 – – (103) – (514) Global resolution of the investigations into the Bank's U.S. BSA/AML program 4 – – (615) – (615) Less: Impact of income taxes Amortization of acquired intangibles (8) (9) (10) (17) (25) Acquisition and integration charges related to the Schwab transaction – – (5) – (11) Restructuring charges (41) – (43) (41) (121) Acquisition and integration-related charges (8) (11) (22) (19) (46) Impact from the terminated FHN acquisition-related capital hedging strategy (12) (13) (16) (25) (30) Gain on sale of Schwab shares 407 – – 407 – U.S. balance sheet restructuring (282) (231) – (513) – Civil matter provision – – (69) – (69) FDIC special assessment – – (26) – (127) Total adjustments for items of note 7,503 (830) (1,225) 6,673 (2,038) Net income available to common shareholders – reported $ 10,929 $ 2,707 $ 2,374 $ 13,636 $ 5,124 1 After the termination of the merger agreement between the Bank and FHN on May 4, 2023, the residual impact of the strategy is reversed through net interest income – Q2 2025: ($47) million, Q1 2025: ($54) million, 2025 YTD: ($101) million, Q2 2024: ($64) million, 2024 YTD: ($121) million, reported in the Corporate segment. 2 Adjusted net interest income excludes the following item of note: i. U.S. balance sheet restructuring – Q2 2025: $36 million, 2025 YTD: $36 million, reported in the U.S. Retail segment. 3 Adjusted non-interest income excludes the following items of note: i. The Bank sold common shares of Schwab and recognized a gain on the sale – Q2 2025: $8,975 million, 2025 YTD: $8,975 million, reported in the Corporate segment; and ii. U.S. balance sheet restructuring – Q2 2025: $1,093 million, Q1 2025: $927 million, 2025 YTD: $2,020 million, reported in the U.S. Retail segment. 4 Adjusted non-interest expenses exclude the following items of note: i. Amortization of acquired intangibles – Q2 2025: $34 million, Q1 2025: $35 million, 2025 YTD: $69 million, Q2 2024: $42 million, 2024 YTD: $105 million, reported in the Corporate segment; ii. The Bank's own acquisition and integration charges related to the Schwab transaction – Q2 2024: $16 million, 2024 YTD: $39 million, reported in the Corporate segment; iii. Restructuring charges – Q2 2025: $163 million, 2025 YTD: $163 million, compared with Q2 2024: $165 million, 2024 YTD: $456 million under a previous program, reported in the Corporate segment; iv. Acquisition and integration-related charges – Q2 2025: $34 million, Q1 2025: $52 million, 2025 YTD: $86 million, Q2 2024: $102 million, 2024 YTD: $219 million, reported in the Wholesale Banking segment; v. Civil matter provision – Q2 2024: $274 million, 2024 YTD: $274 million, reported in the Corporate segment; vi. FDIC special assessment – Q2 2024: $103 million, 2024 YTD: $514 million, reported in the U.S. Retail segment; and vii. Charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program – Q2 2024: $615 million, 2024 YTD: $615 million, reported in the U.S. Retail segment. 5 Adjusted share of net income from investment in Schwab excludes the following items of note on an after-tax basis. The earnings impact of these items is reported in the Corporate segment: i. Amortization of Schwab-related acquired intangibles – Q2 2025: $9 million, Q1 2025: $26 million, 2025 YTD: $35 million, Q2 2024: $30 million, 2024 YTD: $61 million; ii. The Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade – Q2 2024: $5 million, 2024 YTD: $14 million; iii. The Bank's share of restructuring charges incurred by Schwab – 2024 YTD: $27 million; and iv. The Bank's share of the FDIC special assessment charge incurred by Schwab – 2024 YTD: $22 million. 6 Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of acquired intangibles relating to the share of net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 4 and 5 for amounts. TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE 1 (Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Basic earnings (loss) per share – reported $ 6.28 $ 1.55 $ 1.35 $ 7.81 $ 2.90 Adjustments for items of note (4.31) 0.47 0.69 (3.82) 1.15 Basic earnings per share – adjusted $ 1.97 $ 2.02 $ 2.04 $ 3.99 $ 4.05 Diluted earnings (loss) per share – reported $ 6.27 $ 1.55 $ 1.35 $ 7.81 $ 2.89 Adjustments for items of note (4.30) 0.47 0.69 (3.82) 1.15 Diluted earnings per share – adjusted $ 1.97 $ 2.02 $ 2.04 $ 3.99 $ 4.04 1 EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the period. Numbers may not add due to rounding. Return on Common Equity The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank's use of equity. ROE for the business segments is calculated as the segment net income attributable to common shareholders as a percentage of average allocated capital. The Bank's methodology for allocating capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated to the business segments was 11.5% CET1 Capital effective fiscal 2024. Return on Tangible Common Equity Tangible common equity (TCE) is calculated as common shareholders' equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after adjusting for the after‑tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and adjusted ROTCE can be utilized in assessing the Bank's use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP ratios. TABLE 6: RETURN ON TANGIBLE COMMON EQUITY (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Average common equity $ 114,585 $ 106,133 $ 101,137 $ 110,708 $ 100,573 Average goodwill 19,302 19,205 18,380 19,207 18,322 Average imputed goodwill and intangibles on investments in Schwab 1,304 5,116 6,051 2,924 6,062 Average other acquired intangibles 1 450 482 574 456 595 Average related deferred tax liabilities (236) (237) (228) (236) (230) Average tangible common equity 93,765 81,567 76,360 88,357 75,824 Net income attributable to common shareholders – reported 10,929 2,707 2,374 13,636 5,124 Amortization of acquired intangibles, net of income taxes 35 52 62 87 141 Net income attributable to common shareholders adjusted for amortization of acquired intangibles, net of income taxes 10,964 2,759 2,436 13,723 5,265 Other items of note, net of income taxes (7,538) 778 1,163 (6,760) 1,897 Net income available to common shareholders – adjusted $ 3,426 $ 3,537 $ 3,599 $ 6,963 $ 7,162 Return on tangible common equity 48.0 % 13.4 % 13.0 % 31.3 % 13.9 % Return on tangible common equity – adjusted 15.0 17.2 19.2 15.9 18.9 1 Excludes intangibles relating to software and asset servicing rights. HOW OUR BUSINESSES PERFORMED For management reporting purposes, the Bank's business operations and activities are organized around the following four key business segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The Bank's other activities are grouped into the Corporate segment. Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is adjusted. For further details, refer to the "How We Performed" section of this document, the "Business Focus" section in the Bank's 2024 MD&A, and Note 28 of the Bank's Annual Consolidated Financial Statements for the year ended October 31, 2024. Effective the first quarter of 2025, certain U.S. governance and control investments, including costs for U.S. BSA/AML remediation, previously reported in the Corporate segment are now reported in the U.S. Retail segment. Comparative amounts have been reclassified to conform with the presentation adopted in the current period. PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the respective segment. Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $13 million, compared with $15 million in the prior quarter and $4 million in the second quarter last year. On February 12, 2025, the Bank sold its entire remaining equity investment in Schwab. Prior to the sale, the Bank accounted for its investment in Schwab using the equity method and the share of net income from investment in Schwab was reported in the U.S. Retail segment. Amounts for amortization of acquired intangibles, the acquisition and integration charges related to the Schwab transaction, and the Bank's share of restructuring and other charges incurred by Schwab are recorded in the Corporate segment. Refer to "Significant Events" for further details. TABLE 7: CANADIAN PERSONAL AND COMMERCIAL BANKING (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Net interest income $ 4,023 $ 4,135 $ 3,812 $ 8,158 $ 7,645 Non-interest income 968 1,014 1,027 1,982 2,078 Total revenue 4,991 5,149 4,839 10,140 9,723 Provision for (recovery of) credit losses – impaired 428 459 397 887 761 Provision for (recovery of) credit losses – performing 194 62 70 256 129 Total provision for (recovery of) credit losses 622 521 467 1,143 890 Non-interest expenses 2,052 2,086 1,957 4,138 3,941 Provision for (recovery of) income taxes 649 711 676 1,360 1,368 Net income $ 1,668 $ 1,831 $ 1,739 $ 3,499 $ 3,524 Selected volumes and ratios Return on common equity 1 28.9 % 31.4 % 32.9 % 30.2 % 33.8 % Net interest margin (including on securitized assets) 2 2.82 2.81 2.84 2.82 2.84 Efficiency ratio 41.1 40.5 40.4 40.8 40.5 Number of Canadian retail branches 1,059 1,063 1,062 1,059 1,062 Average number of full-time equivalent staff 27,371 27,422 29,053 27,397 29,163 1 2 Net interest margin is calculated by dividing net interest income by average interest-earning assets. Average interest-earning assets used in the calculation of net interest margin is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document and the Glossary in the Bank's second quarter 2025 MD&A for additional information about these metrics. Quarterly comparison – Q2 2025 vs. Q2 2024 Canadian Personal and Commercial Banking net income for the quarter was $1,668 million, a decrease of $71 million, or 4%, compared with the second quarter last year, primarily reflecting higher PCL and non-interest expenses, partially offset by higher revenue. The annualized ROE for the quarter was 28.9%, compared with 32.9%, in the second quarter last year. Revenue for the quarter was $4,991 million, an increase of $152 million, or 3%, compared with the second quarter last year. Net interest income was $4,023 million, an increase of $211 million, or 6%, primarily reflecting volume growth. Average loan volumes increased $21 billion, or 4%, reflecting 3% growth in personal loans and 6% growth in business loans. Average deposit volumes increased $25 billion, or 5%, reflecting 4% growth in personal deposits and 8% growth in business deposits. Net interest margin was 2.82%, a decrease of 2 bps, primarily due to changes to balance sheet mix reflecting the transition of Bankers' Acceptances (BAs) to Canadian Overnight Repo Rate Average (CORRA)-based loans. Non-interest income was $968 million, a decrease of $59 million, or 6%, compared with the second quarter last year, primarily reflecting lower fees due to the transition of BAs to CORRA-based loans in the prior year, the impact of which is offset in net interest income. PCL for the quarter was $622 million, an increase of $155 million compared with the second quarter last year. PCL – impaired was $428 million, an increase of $31 million, or 8%, largely reflecting credit migration in the consumer lending portfolios. PCL – performing was $194 million, an increase of $124 million compared to the prior year. The performing provisions this quarter largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts. Total PCL as an annualized percentage of credit volume was 0.44%, an increase of 10 bps compared with the second quarter last year. Non-interest expenses for the quarter were $2,052 million, an increase of $95 million, or 5%, compared with the second quarter last year, primarily reflecting higher technology spend and other operating expenses. The efficiency ratio for the quarter was 41.1%, compared with 40.4% in the second quarter last year. Quarterly comparison – Q2 2025 vs. Q1 2025 Canadian Personal and Commercial Banking net income for the quarter was $1,668 million, a decrease of $163 million, or 9%, compared with the prior quarter, primarily reflecting lower revenue and higher PCL, partially offset by lower non-interest expenses. The annualized ROE for the quarter was 28.9%, compared with 31.4% in the prior quarter. Revenue decreased $158 million, or 3%, compared with the prior quarter. Net interest income decreased $112 million, or 3%, reflecting fewer days in the second quarter, partially offset by volume growth. Average loan volumes increased $2 billion, relatively flat compared with the prior quarter. Average deposit volumes increased $1 billion, relatively flat compared with the prior quarter. Net interest margin was 2.82%, an increase of 1 basis point, primarily due to higher margins on loans. As we look forward to the third quarter, while many factors can impact margins, we again expect net interest margin to be relatively stable[6]. Non-interest income decreased $46 million, or 5% compared with the prior quarter, reflecting lower fee revenue. PCL for the quarter was $622 million, an increase of $101 million compared with the prior quarter. PCL – impaired was $428 million, a decrease of $31 million, or 7%, recorded across the consumer and commercial lending portfolios. PCL – performing was $194 million, an increase of $132 million. The performing provisions this quarter largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts. Total PCL as an annualized percentage of credit volume was 0.44%, an increase of 9 bps compared with the prior quarter. Non-interest expenses decreased $34 million, or 2% compared with the prior quarter, primarily reflecting fewer days in the second quarter, the impact of TD Share Compensation Initiative from the prior quarter, and lower other operating expenses. The efficiency ratio was 41.1%, compared with 40.5% in the prior quarter. Year-to-date comparison – Q2 2025 vs. Q2 2024 Canadian Personal and Commercial Banking net income for the six months ended April 30, 2025, was $3,499 million, a decrease of $25 million, or 1%, compared with the same period last year, reflecting higher PCL and non-interest expenses, partially offset by higher revenue. The annualized ROE for the period was 30.2%, compared with 33.8%, in the same period last year. Revenue for the period was $10,140 million, an increase of $417 million, or 4%, compared with the same period last year. Net interest income was $8,158 million, an increase of $513 million, or 7%, compared with the same period last year, primarily reflecting volume growth. Average loan volumes increased $23 billion, or 4%, reflecting 4% growth in personal loans and 6% growth in business loans. Average deposit volumes increased $25 billion, or 5%, reflecting 4% growth in personal deposits and 8% growth in business deposits. Net interest margin was 2.82%, a decrease of 2 bps, primarily due to changes to balance sheet mix reflecting the transition of BAs to CORRA-based loans. Non-interest income was $1,982 million, a decrease of $96 million, or 5%, reflecting lower fees due to the transition of BAs to CORRA-based loans in the prior year, the impact of which is offset in net interest income, partially offset by higher fee revenue. PCL was $1,143 million, an increase of $253 million compared with the same period last year. PCL – impaired was $887 million, an increase of $126 million, or 17%, largely reflecting credit migration in the consumer lending portfolios. PCL – performing was $256 million, an increase of $127 million compared with the same period last year. The current year performing provisions largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts, and volume growth. Total PCL as an annualized percentage of credit volume was 0.39%, an increase of 7 bps compared with the same period last year. Non-interest expenses were $4,138 million, an increase of $197 million, or 5%, compared with the same period last year, reflecting higher technology spend and other operating expenses. The efficiency ratio was 40.8%, compared with 40.5%, for the same period last year. U.S. Retail Update on U.S. Balance Sheet Restructuring Activities The Bank continued to focus on executing the balance sheet restructuring activities disclosed in the 2024 MD&A to help ensure the Bank can continue to support customers' financial needs in the U.S. while not exceeding the limitation on the combined total assets of TD Bank, N.A. and TD Bank USA, N.A. (the "U.S. Bank"). As previously disclosed, the Bank expects to reposition its U.S. investment portfolio by selling up to US$50 billion of lower yielding investment securities and reinvesting the proceeds into a similar composition of assets but yielding higher rates. During the second quarter of fiscal 2025, the Bank sold approximately US$3.1 billion of bonds which resulted in a loss of US$199 million pre-tax. In the aggregate, since the announcement of the U.S. balance sheet restructuring activities on October 10, 2024, through April 30, 2025, the Bank sold approximately US$19 billion of bonds from its U.S. investment portfolio for an aggregate loss of US$1.1 billion pre-tax. Between May 1, 2025, through May 21, 2025, the Bank sold an additional US$4.3 billion of bonds, resulting in a loss of US$178 million pre-tax. The Bank expects to complete its investment portfolio repositioning no later than the first half of calendar 2025 and expects the net interest income benefit from these sales to be at the upper end of the previously disclosed range of US$300 million to US$500 million pre-tax in fiscal 2025[7]. In addition, the Bank continues to target reducing the U.S. Bank's assets by approximately 10% from the asset level as of September 30, 2024, largely by selling or winding down certain non-scalable or non-core U.S. loan portfolios that do not align with the U.S. Retail segment's focused strategy or have lower returns on investment such as the correspondent lending, residential jumbo mortgage, export and import lending, and commercial auto dealer portfolios. This reduction in assets combined with natural balance sheet run-off, is expected to be largely complete by the end of fiscal 2025 and reduce net interest income in the U.S. Retail segment by approximately US$200 million to US$225 million pre-tax in fiscal 2025[8]. This quarter, the Bank completed the sale of US$8.6 billion of certain U.S. residential mortgage loans (the "correspondent loans"), which resulted in the recognition of a pre-tax loss including transaction costs of US$564 million; net interest income was US$25 million lower as a result of the related hedge rebalance before close. In addition to the correspondent loan sale, loans were further reduced by US$2 billion, reflecting run-off and sales in the non-core U.S. loan portfolios. The Bank used proceeds from the sale of the loans, investment maturities, and cash on hand, to pay down US$4 billion of short-term borrowings. Accordingly, as of April 30, 2025, the combined total assets of the U.S. Bank were US$399 billion. Between May 1, 2025, through May 21, 2025, the Bank paid down an additional US$7 billion of bank borrowings from loan sales, investment maturities and normalized cash levels. As of March 31, 2025, the combined total assets of the U.S. Bank, as measured in accordance with the OCC Consent Order which utilizes the average of spot balances of December 31, 2024, and March 31, 2025, was US$405 billion. In the aggregate, total losses associated with the Bank's U.S. balance sheet restructuring activities from October 10, 2024, through April 30, 2025, are US$1,666 million pre-tax and US$1,250 million after-tax. In total, the Bank's collective balance sheet restructuring actions are expected to result in a loss up to US$1.5 billion after-tax, and impact capital as executed 7, 8. _________________________ In addition to the asset reductions identified on October 10, 2024, the Bank made the strategic decision to gradually wind-down the approximately US$3 billion point of sale financing business which services third-party retailers, as part of the Bank's efforts to reduce non-scalable and niche portfolios that do not fit the Bank's focused strategy. TABLE 8: U.S. RETAIL (millions of dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 Canadian Dollars 2025 2025 2024 2025 2024 Net interest income – reported $ 3,038 $ 3,064 $ 2,841 $ 6,102 $ 5,740 Net interest income – adjusted 1,2 3,074 3,064 2,841 6,138 5,740 Non-interest income (loss) – reported (445) (282) 606 (727) 1,210 Non-interest income – adjusted 1,3 648 645 606 1,293 1,210 Total revenue – reported 2,593 2,782 3,447 5,375 6,950 Total revenue – adjusted 1,2,3 3,722 3,709 3,447 7,431 6,950 Provision for (recovery of) credit losses – impaired 309 529 311 838 688 Provision for (recovery of) credit losses – performing 133 (78) 69 55 77 Total provision for (recovery of) credit losses 442 451 380 893 765 Non-interest expenses – reported 2,338 2,380 2,694 4,718 5,153 Non-interest expenses – adjusted 1,4 2,338 2,380 1,976 4,718 4,024 Provision for (recovery of) income taxes – reported (229) (192) 49 (421) 32 Provision for (recovery of) income taxes – adjusted 1 53 39 75 92 159 U.S. Retail Bank net income – reported 42 143 324 185 1,000 U.S. Retail Bank net income – adjusted 1 889 839 1,016 1,728 2,002 Share of net income from investment in Schwab 5,6 78 199 183 277 377 Net income – reported $ 120 $ 342 $ 507 $ 462 $ 1,377 Net income – adjusted 1 967 1,038 1,199 2,005 2,379 U.S. Dollars Net interest income – reported $ 2,136 $ 2,160 $ 2,094 $ 4,296 $ 4,235 Net interest income – adjusted 1,2 2,161 2,160 2,094 4,321 4,235 Non-interest income (loss) – reported (306) (198) 446 (504) 892 Non-interest income – adjusted 1,3 457 454 446 911 892 Total revenue – reported 1,830 1,962 2,540 3,792 5,127 Total revenue – adjusted 1,2,3 2,618 2,614 2,540 5,232 5,127 Provision for (recovery of) credit losses – impaired 216 371 229 587 508 Provision for (recovery of) credit losses – performing 95 (53) 51 42 57 Total provision for (recovery of) credit losses 311 318 280 629 565 Non-interest expenses – reported 1,644 1,675 1,980 3,319 3,795 Non-interest expenses – adjusted 1,4 1,644 1,675 1,455 3,319 2,970 Provision for (recovery of) income taxes – reported (160) (136) 37 (296) 25 Provision for (recovery of) income taxes – adjusted 1 37 27 56 64 118 U.S. Retail Bank net income – reported 35 105 243 140 742 U.S. Retail Bank net income – adjusted 1 626 594 749 1,220 1,474 Share of net income from investment in Schwab 5,6 54 142 136 196 280 Net income – reported $ 89 $ 247 $ 379 $ 336 $ 1,022 Net income – adjusted 1 680 736 885 1,416 1,754 Selected volumes and ratios Return on common equity – reported 7 1.1 % 2.9 % 4.7 % 2.1 % 6.4 % Return on common equity – adjusted 1,7 8.8 8.6 11.0 8.7 11.0 Net interest margin – reported 1,8 3.00 2.86 2.99 2.93 3.01 Net interest margin – adjusted 1,8 3.04 2.86 2.99 2.95 3.01 Efficiency ratio – reported 89.8 85.4 78.0 87.5 74.0 Efficiency ratio – adjusted 1 62.8 64.1 57.3 63.4 57.9 Assets under administration (billions of U.S. dollars) 9 $ 45 $ 43 $ 40 $ 45 $ 40 Assets under management (billions of U.S. dollars) 9 9 9 7 9 7 Number of U.S. retail stores 1,137 1,134 1,167 1,137 1,167 Average number of full-time equivalent staff 28,604 28,276 27,957 28,437 27,971 1 For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document. 2 Adjusted net interest income excludes the following item of note: i. U.S. balance sheet restructuring (impact of loan hedge rebalancing before the close of the correspondent loan sale) – Q2 2025: $36 million or US$25 million ($26 million or US$19 million after-tax), 2025 YTD: $36 million or US$25 million ($26 million or US$19 million after-tax). 3 Adjusted non-interest income excludes the following item of note: i. U.S. balance sheet restructuring – Q2 2025: $1,093 million or US$763 million ($821 million or US$572 million after-tax), Q1 2025: $927 million or US$652 million ($696 million or US$489 million after-tax), 2025 YTD: $2,020 million or US$1,415 million ($1,517 million or US$1,061 million after-tax). 4 Adjusted non-interest expenses exclude the following items of note: i. FDIC special assessment – Q2 2024: $103 million or US$75 million ($77 million or US$56 million after-tax), 2024 YTD: $514 million or US$375 million ($387 million or US$282 million after-tax); and ii. Charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program – Q2 2024: $615 million or US$450 million (before and after-tax), 2024 YTD: $615 million or US$450 million (before and after-tax). 5 The Bank's share of Schwab's earnings is reported with a one-month lag. Refer to Note 7 of the Bank's second quarter 2025 Interim Consolidated Financial Statements for further details. 6 The after-tax amounts for amortization of acquired intangibles, the Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade, the Bank's share of Schwab's restructuring charges, and the Bank's share of Schwab's FDIC special assessment charge are recorded in the Corporate segment. 7 Capital allocated to the business segment was 11.5% CET1 Capital. 8 Net interest margin is calculated by dividing U.S. Retail segment's net interest income by average interest-earning assets excluding the impact related to sweep deposits arrangements and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Net interest income and average interest-earning assets used in the calculation are non-GAAP financial measures. Management believes this calculation better reflects segment performance. 9 For additional information about this metric, refer to the Glossary in the Bank's second quarter 2025 MD&A. Quarterly comparison – Q2 2025 vs. Q2 2024 U.S. Retail reported net income for the quarter was $120 million (US$89 million), a decrease of $387 million (US$290 million), or 76% (77% in U.S. dollars), compared with the second quarter last year. On an adjusted basis, net income for the quarter was $967 million (US$680 million), a decrease of $232 million (US$205 million), or 19% (23% in U.S. dollars). The reported and adjusted annualized ROE for the quarter were 1.1% and 8.8%, respectively, compared with 4.7% and 11.0%, respectively, in the second quarter last year. U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank's investment in Schwab. Reported net income for the quarter from the Bank's investment in Schwab was $78 million (US$54 million), a decrease of $105 million (US$82 million), or 57% (60% in U.S. dollars), compared with the second quarter last year. U.S. Retail Bank reported net income was $42 million (US$35 million), a decrease of $282 million (US$208 million), or 87% (86% in U.S. dollars), compared with the second quarter last year, primarily reflecting the impact of U.S. balance sheet restructuring activities, higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher PCL, partially offset by the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program, and FDIC special assessment charge, in the second quarter last year. U.S. Retail Bank adjusted net income was $889 million (US$626 million), a decrease of $127 million (US$123 million), or 13% (16% in U.S. dollars), compared with the second quarter last year, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher PCL, partially offset by higher revenue. Reported revenue for the quarter was US$1,830 million, a decrease of US$710 million, or 28%, compared with the second quarter last year. On an adjusted basis, revenue for the quarter was US$2,618 million, an increase of US$78 million, or 3%. Reported net interest income of US$2,136 million, increased US$42 million, or 2%, and adjusted net interest income of US$2,161 million, increased US$67 million, or 3%, driven by the impact of U.S. balance sheet restructuring activities and higher deposit margins, partially offset by the adjustment related to certain deferred product acquisition costs (the "deferred cost adjustment"). Reported net interest margin of 3.00% increased 1 basis point, and adjusted net interest margin of 3.04% increased 5 bps, due to the impact of U.S. balance sheet restructuring activities and higher deposit margins, partially offset by maintaining elevated liquidity levels (which negatively impacted net interest margin by 8 bps) and the deferred cost adjustment. Reported non-interest loss was US$306 million, a decrease of US$752 million, compared with the second quarter last year, reflecting the impact of U.S. balance sheet restructuring activities, partially offset by higher fee income. On an adjusted basis, non-interest income of US$457 million increased US$11 million, or 2%, compared with the second quarter last year, reflecting higher fee income. _________________________ [9] Loan portfolios identified for sale or run-off include the point of sale finance business which services third party retailers, correspondent lending, residential jumbo mortgage, export and import lending, commercial auto dealer portfolio, and other non-core portfolios. Q2 2025 average loan volumes: US$187 billion (Q1 2025: US$193 billion; 2025 YTD: US$190 billion; Q2 2024: US$193 billion; 2024 YTD: US$192 billion). Q2 2025 average loan volumes of loan portfolios identified for sale or run-off: US$31 billion (Q1 2025: US$37 billion; 2025 YTD: US$34 billion; Q2 2024: US$40 billion; 2024 YTD: US$40 billion). Q2 2025 average loan volumes excluding loan portfolios identified for sale or run-off: US$156 billion (Q1 2025: US$156 billion; 2025 YTD: US$156 billion; Q2 2024: US$153 billion; 2024 YTD: US$152 billion). [10] For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document. Average loan volumes decreased US$6 billion, or 3%, compared with the second quarter last year. Personal loans decreased 2% and business loans decreased 4%, reflecting U.S. balance sheet restructuring activities. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, average loan volumes increased US$3 billion, or 2%[9],[10]. Average deposit volumes decreased US$7 billion, or 2%, reflecting a 7% decrease in sweep deposits and a 4% decrease in business deposits, partially offset by a 3% increase in personal deposits. Assets under administration (AUA) were US$45 billion as of April 30, 2025, an increase of US$5 billion, or 13%, compared with the second quarter last year, reflecting net asset growth. Assets under management (AUM) were US$9 billion as of April 30, 2025, an increase of US$2 billion, or 29%, compared with the second quarter last year. PCL for the quarter was US$311 million, an increase of US$31 million compared with the second quarter last year. PCL – impaired was US$216 million, a decrease of US$13 million, or 6%, largely recorded in the consumer lending portfolios. PCL – performing was US$95 million, an increase of US$44 million compared to the prior year. The performing provisions this quarter largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts, partially offset by lower volume. U.S. Retail PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.70%, an increase of 10 bps compared with the second quarter last year. Effective the first quarter of 2025, U.S. Retail segment non-interest expenses include certain U.S. governance and control investments, including costs for U.S. BSA/AML remediation which were previously reported in the Corporate segment. Comparative amounts have been reclassified to conform with the presentation adopted in the current period. Reported non-interest expenses for the quarter were US$1,644 million, a decrease of US$336 million, or 17%, compared to the second quarter last year, reflecting the impact of charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program, and the FDIC special assessment charge, in the second quarter last year, partially offset by higher governance and control investments including costs of US$110 million for U.S. BSA/AML remediation, and higher employee-related expenses, in the current quarter. Our governance and control investments in this quarter were higher compared to the second quarter last year as remediation efforts progressed over this period. On an adjusted basis, non-interest expenses increased US$189 million, or 13%, reflecting higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher employee-related expenses. The reported and adjusted efficiency ratios for the quarter were 89.8% and 62.8%, respectively, compared with 78.0% and 57.3%, respectively, in the second quarter last year. Quarterly comparison – Q2 2025 vs. Q1 2025 U.S. Retail reported net income was $120 million (US$89 million), a decrease of $222 million (US$158 million), or 65% (64% in U.S. dollars), compared with the prior quarter. On an adjusted basis, net income for the quarter was $967 million (US$680 million), a decrease of $71 million (US$56 million), or 7% (8% in U.S. dollars). The reported and adjusted annualized ROE for the quarter were 1.1% and 8.8%, respectively, compared with 2.9% and 8.6%, respectively, in the prior quarter. The contribution from Schwab of $78 million (US$54 million) decreased $121 million (US$88 million), or 61% (62% in U.S. dollars), compared with the prior quarter. U.S. Retail Bank reported net income was $42 million (US$35 million), a decrease of $101 million (US$70 million), or 71% (67% in U.S. dollars) compared with the prior quarter, primarily reflecting the impact of U.S. balance sheet restructuring activities and higher PCL, partially offset by the impact of fewer days in the current quarter. U.S. Retail Bank adjusted net income was $889 million (US$626 million), an increase of $50 million (US$32 million), or 6% (5% in U.S. dollars), compared to the prior quarter, primarily reflecting lower expenses, lower PCL, and higher non-interest income. Reported revenue was US$1,830 million, a decrease of US$132 million, or 7%, compared with the prior quarter. On an adjusted basis, revenue was US$2,618 million, an increase of US$4 million, relatively flat, compared with the prior quarter. Reported net interest income of US$2,136 million decreased US$24 million, or 1%, driven by the deferred cost adjustment, and fewer days in the quarter, partially offset by the impact of U.S. balance sheet restructuring activities. On an adjusted basis, net interest income was US$2,161 million, relatively flat compared with the prior quarter, as the impact of U.S. balance sheet restructuring activities was offset by the deferred cost adjustment, and fewer days in the quarter. Reported net interest margin of 3.00% increased 14 bps, and adjusted net interest margin of 3.04% increased 18 bps, compared with the prior quarter, due to impact of U.S. balance sheet restructuring activities, normalization of elevated liquidity levels (which positively impacted net interest margin by 11 bps), and higher deposit margins, partially offset by the deferred cost adjustment. Net interest margin in the third quarter is expected to deliver substantial expansion, reflecting the benefits from ongoing U.S. balance sheet restructuring activities and further normalization of elevated liquidity levels[11]. Reported non-interest loss was US$306 million, compared with reported non-interest loss of US$198 million in the prior quarter, reflecting the impact of U.S. balance sheet restructuring activities, partially offset by higher fee revenue. On an adjusted basis, non-interest income of US$457 million increased US$3 million, or 1%, compared with the prior quarter, reflecting higher fee revenue. Average loan volumes decreased US$6 billion, or 3%, compared with the prior quarter, reflecting a 5% decrease in personal loans and a 2% decrease in business loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, average loan volumes were flat 9, 10. Average deposit volumes were relatively flat compared with the prior quarter, reflecting a 2% decrease in business deposits and a 1% decrease in sweep deposits, partially offset by a 1% increase in personal deposits. AUA were US$45 billion as of April 30, 2025, an increase of US$2 billion, or 5%, compared with the prior quarter. AUM were US$9 billion, flat compared with the prior quarter. PCL for the quarter was US$311 million, a decrease of US$7 million compared with the prior quarter. PCL – impaired was US$216 million, a decrease of US$155 million, or 42%, recorded across the consumer and commercial lending portfolios, including seasonal trends in the credit card and auto portfolios, and a prior quarter adoption impact of a model update in the credit card portfolio. PCL – performing was a build of US$95 million, compared with a recovery of US$53 million in the prior quarter. The performing provisions this quarter largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts, partially offset by lower volume. U.S. Retail PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.70%, an increase of 3 bps compared with the prior quarter. Non-interest expenses for the quarter were US$1,644 million, a decrease of US$31 million, or 2%, compared with the prior quarter, reflecting fewer days in the quarter and lower operating expenses, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation. The reported and adjusted efficiency ratios for the quarter were 89.8% and 62.8%, respectively, compared with 85.4% and 64.1%, respectively, in the prior quarter. Year-to-date comparison – Q2 2025 vs. Q2 2024 U.S. Retail reported net income for the six months ended April 30, 2025, was $462 million (US$336 million), a decrease of $915 million (US$686 million), or 66% (67% in U.S. dollars), compared with the same period last year. On an adjusted basis, net income for the period was $2,005 million (US$1,416 million), a decrease of $374 million (US$338 million), or 16% (19% in U.S. dollars). The reported and adjusted annualized ROE for the period were 2.1% and 8.7%, respectively, compared with 6.4% and 11.0%, respectively, in the same period last year. The contribution from Schwab of $277 million (US$196 million), decreased $100 million (US$84 million), or 27% (30% in U.S. dollars). U.S. Retail Bank reported net income for the period was $185 million (US$140 million), a decrease of $815 million (US$602 million), or 82% (81% in U.S. dollars), compared with the same period last year, reflecting the impact of U.S. balance sheet restructuring activities, higher PCL, and higher non-interest expenses, partially offset by the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program, and FDIC special assessment charge, in the same period last year, and higher revenue. U.S. Retail Bank adjusted net income was $1,728 million (US$1,220 million), a decrease of $274 million (US$254 million), or 14% (17% in U.S. dollars), primarily reflecting higher non-interest expenses and higher PCL, partially offset by higher revenue. Reported revenue for the period was US$3,792 million, a decrease of US$1,335 million, or 26%, compared with the same period last year. On an adjusted basis, revenue for the period was US$5,232 million, an increase of US$105 million, or 2%, compared with the same period last year. Reported net interest income of US$4,296 million increased US$61 million, or 1%, and adjusted net interest income of US$4,321 million increased US$86 million, or 2%, reflecting the impact of U.S. balance sheet restructuring activities and higher deposit margins, partially offset by the deferred cost adjustment. Reported net interest margin of 2.93%, decreased 8 bps, and adjusted net interest margin of 2.95% decreased 6 bps, due to maintaining elevated liquidity levels (which negatively impacted net interest margin by 13 bps) and the deferred cost adjustment, partially offset by the impact of U.S. balance sheet restructuring activities, and higher deposit margins. Reported non-interest loss of US$504 million decreased US$1,396 million, primarily reflecting the impact of U.S. balance sheet restructuring activities, partially offset by higher fee revenue. On an adjusted basis, non-interest income of US$911 million increased US$19 million, or 2%, primarily reflecting higher fee income. Average loan volumes for the period decreased $2 billion, or 1%, compared with the same period last year, reflecting a 3% decrease in business loans, partially offset by a 1% increase in personal loans. Excluding the impact of the loan portfolios identified for sale or run-off under our U.S. balance sheet restructuring program, average loan volumes for the period increased US$4 billion, or 3%, compared with the same period last year 9, 10. Average deposit volumes decreased US$8 billion, or 3%, reflecting a 9% decrease in sweep deposits and a 4% decrease in business deposits, partially offset by a 3% increase in personal deposits compared with the same period last year. PCL was US$629 million, an increase of US$64 million compared with the same period last year. PCL – impaired was US$587 million, an increase of US$79 million, or 16%, largely reflecting credit migration in the commercial lending portfolio and the adoption impact of a model update in the credit card portfolio. PCL – performing was US$42 million, a decrease of US$15 million compared with the same period last year. The current year performing provisions largely reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts, partially offset by lower volume and the adoption impact of a model update in the credit card portfolio. U.S. Retail PCL including only the Bank's share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.68%, an increase of 8 bps, compared with the same period last year. Reported non-interest expenses for the period were US$3,319 million, a decrease of US$476 million, or 13%, compared with the same period last year, reflecting the impact of the charges for the global resolution of the investigations into the Bank's U.S. BSA/AML program, and FDIC special assessment charge, in the same period last year, partially offset by higher governance and control investments, including costs for U.S. BSA/AML remediation, and higher employee-related expenses. On an adjusted basis, non-interest expenses increased US$349 million, or 12%, reflecting costs related to the Bank's governance and control investments, including costs for U.S. BSA/AML remediation, and higher employee-related expenses. The reported and adjusted efficiency ratios for the period were 87.5% and 63.4%, respectively, compared with 74.0% and 57.9%, respectively, for the same period last year. _________________________ (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Net interest income $ 362 $ 369 $ 304 $ 731 $ 589 Non-interest income 3,141 3,229 2,810 6,370 5,660 Total revenue 3,503 3,598 3,114 7,101 6,249 Insurance service expenses 1 1,417 1,507 1,248 2,924 2,614 Non-interest expenses 1,131 1,173 1,027 2,304 2,074 Provision for (recovery of) income taxes 248 238 218 486 385 Net income $ 707 $ 680 $ 621 $ 1,387 $ 1,176 Selected volumes and ratios Return on common equity 46.8 % 42.7 % 40.8 % 44.7 % 39.2 % Return on common equity – Wealth Management 2 57.8 61.9 54.4 59.9 49.4 Return on common equity – Insurance 33.5 21.9 26.9 27.3 28.0 Efficiency ratio 32.3 32.6 33.0 32.4 33.2 Efficiency ratio, net of ISE 3 54.2 56.1 55.0 55.2 57.1 Assets under administration (billions of Canadian dollars) 4 $ 654 $ 687 $ 596 $ 654 $ 596 Assets under management (billions of Canadian dollars) 542 556 489 542 489 Average number of full-time equivalent staff 15,077 15,059 15,163 15,068 15,276 1 Includes estimated losses related to catastrophe claims – Q2 2025: $50 million, Q1 2025: nil, Q2 2024: $7 million, YTD 2025: $50 million, YTD 2024: $17 million. 2 Capital allocated to the business was 11.5% CET1 Capital. 3 Efficiency ratio, net of ISE is calculated by dividing non-interest expenses by total revenue, net of ISE. Total revenue, net of ISE – Q2 2025: $2,086 million, Q1 2025: $2,091 million, Q2 2024: $1,866 million, YTD 2025: $4,177 million, YTD 2024: $3,635 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section and the Glossary in the Bank's second quarter 2025 MD&A for additional information about this metric. 4 Includes AUA administered by TD Investment Services Inc. which is part of the Canadian Personal and Commercial Banking segment. Quarterly comparison – Q2 2025 vs. Q2 2024 Wealth Management and Insurance net income for the quarter was $707 million, an increase of $86 million, or 14%, compared with the second quarter last year, reflecting Wealth Management net income of $480 million, an increase of $62 million, or 15%, compared with the second quarter last year, and Insurance net income of $227 million, an increase of $24 million, or 12%, compared with the second quarter last year. The annualized ROE for the quarter was 46.8%, compared with 40.8% in the second quarter last year. Wealth Management annualized ROE for the quarter was 57.8%, compared with 54.4% in the second quarter last year, and Insurance annualized ROE for the quarter was 33.5% compared with 26.9% in the second quarter last year. Revenue for the quarter was $3,503 million, an increase of $389 million, or 12%, compared with the second quarter last year. Non-interest income was $3,141 million, an increase of $331 million, or 12%, reflecting higher insurance premiums, fee-based revenue, and transaction revenue. Net interest income was $362 million, an increase of $58 million, or 19%, compared with the second quarter last year, reflecting higher deposit volumes and margins. AUA were $654 billion as at April 30, 2025, an increase of $58 billion, or 10%, and AUM were $542 billion as at April 30, 2025, an increase of $53 billion, or 11%, compared with the second quarter last year, both reflecting market appreciation and net asset growth. Insurance service expenses for the quarter were $1,417 million, an increase of $169 million, or 14%, compared with the second quarter last year, primarily reflecting increased claims severity. Non-interest expenses for the quarter were $1,131 million, an increase of $104 million, or 10%, compared with the second quarter last year, reflecting higher variable compensation, higher spend supporting business growth initiatives from technology spend and employee-related expenses. The efficiency ratio for the quarter was 32.3%, compared with 33.0% in the second quarter last year. The efficiency ratio, net of ISE for the quarter was 54.2%, compared with 55.0% in the second quarter last year. Quarterly comparison – Q2 2025 vs. Q1 2025 Wealth Management and Insurance net income for the quarter was $707 million, an increase of $27 million, or 4%, compared with the prior quarter, reflecting Wealth Management net income of $480 million, a decrease of $32 million, or 6%, compared with the prior quarter, and Insurance net income of $227 million, an increase of $59 million, or 35%, compared with the prior quarter. The annualized ROE for the quarter was 46.8%, compared with 42.7% in the prior quarter. Wealth Management annualized ROE for the quarter was 57.8%, compared with 61.9% in the prior quarter, and Insurance annualized ROE for the quarter was 33.5% compared with 21.9% in the prior quarter. Revenue decreased $95 million, or 3%, compared with the prior quarter. Non-interest income decreased $88 million, or 3%, reflecting lower fee-based revenue and transaction revenue. Net interest income decreased $7 million, or 2%, reflecting the effect of fewer days in the second quarter. AUA decreased $33 billion, or 5%, and AUM decreased $14 billion, or 3%, compared with the prior quarter, both reflecting market depreciation and lower net asset growth. Insurance service expenses for the quarter decreased $90 million, or 6%, compared with the prior quarter, primarily driven by seasonally lower claims. Non-interest expenses decreased $42 million, or 4%, compared with the prior quarter, primarily reflecting lower employee-related expenses and lower variable compensation. The efficiency ratio for the quarter was 32.3%, compared with 32.6% in the prior quarter. The efficiency ratio, net of ISE for the quarter was 54.2%, compared with 56.1% in the prior quarter. Year-to-date comparison – Q2 2025 vs. Q2 2024 Wealth Management and Insurance net income for the six months ended April 30, 2025, was $1,387 million, an increase of $211 million, or 18%, compared with the same period last year, reflecting Wealth Management net income of $992 million, an increase of $219 million, or 28%, compared with the same period last year, and Insurance net income of $395 million, a decrease of $8 million, or 2%, compared with the same period last year. The annualized ROE for the period was 44.7%, compared with 39.2%, in the same period last year. Wealth Management annualized ROE for the period was 59.9%, compared with 49.4% in the same period last year, and Insurance annualized ROE for the period was 27.3% compared with 28.0% in the same period last year. Revenue for the period was $7,101 million, an increase of $852 million, or 14%, compared with same period last year. Non-interest income increased $710 million, or 13%, reflecting higher insurance premiums, fee-based revenue commensurate with market growth, and transaction revenue. Net interest income increased $142 million, or 24%, reflecting higher deposit volumes and margins. Insurance service expenses were $2,924 million, an increase of $310 million, or 12%, compared with the same period last year, reflecting business growth, increased claims severity and higher occurrences of catastrophe claims. Non-interest expenses were $2,304 million, an increase of $230 million, or 11%, compared with the same period last year, reflecting higher variable compensation commensurate with higher revenues, and increased technology spend to support strategic initiatives. The efficiency ratio for the period was 32.4%, compared with 33.2% for the same period last year. The efficiency ratio, net of ISE for the period was 55.2%, compared with 57.1% in the same period last year. TABLE 10: WHOLESALE BANKING 1 (millions of Canadian dollars, except as noted) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Net interest income (loss) (TEB) $ 45 $ (107) $ 189 $ (62) $ 387 Non-interest income 2,084 2,107 1,751 4,191 3,333 Total revenue 2,129 2,000 1,940 4,129 3,720 Provision for (recovery of) credit losses – impaired 61 33 (1) 94 4 Provision for (recovery of) credit losses – performing 62 39 56 101 61 Total provision for (recovery of) credit losses 123 72 55 195 65 Non-interest expenses – reported 1,461 1,535 1,430 2,996 2,930 Non-interest expenses – adjusted 1,2 1,427 1,483 1,328 2,910 2,711 Provision for (recovery of) income taxes (TEB) – reported 126 94 94 220 159 Provision for (recovery of) income taxes (TEB) – adjusted 1 134 105 116 239 205 Net income – reported $ 419 $ 299 $ 361 $ 718 $ 566 Net income – adjusted 1 445 340 441 785 739 Selected volumes and ratios Trading-related revenue (TEB) 3 $ 856 $ 904 $ 693 $ 1,760 $ 1,423 Average gross lending portfolio (billions of Canadian dollars) 4 103.1 100.9 96.3 102.0 96.3 Return on common equity – reported 5 10.2 % 7.3 % 9.2 % 8.8 % 7.3 % Return on common equity – adjusted 1,5 10.9 8.3 11.3 9.6 9.5 Efficiency ratio – reported 68.6 76.8 73.7 72.6 78.8 Efficiency ratio – adjusted 1 67.0 74.2 68.5 70.5 72.9 Average number of full-time equivalent staff 6,970 6,919 7,077 6,944 7,089 1 For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document. 2 Adjusted non-interest expenses exclude the acquisition and integration-related charges for the Cowen acquisition – Q2 2025: $34 million ($26 million after tax), Q1 2025: $52 million ($41 million after tax), 2025 YTD: $86 million ($67 million after tax), Q2 2024: $102 million ($80 million after tax), 2024 YTD: $219 million ($173 million after tax). 3 Includes net interest income (loss) TEB of ($272) million, (Q1 2025: ($404) million, 2025 YTD: ($676) million, Q2 2024: ($118) million, 2024 YTD: ($172) million), and trading income (loss) of $1,128 million (Q1 2025: $1,308 million, 2025 YTD: $2,436 million, Q2 2024: $811 million, 2024 YTD: $1,595 million). Trading-related revenue (TEB) is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section and the Glossary in the Bank's second quarter 2025 MD&A for additional information about this metric. 4 Includes gross loans and bankers' acceptances relating to Wholesale Banking, excluding letters of credit, cash collateral, credit default swaps, and allowance for credit losses. 5 Capital allocated to the business segment was 11.5% CET1 Capital. Quarterly comparison – Q2 2025 vs. Q2 2024 Wholesale Banking reported net income for the quarter was $419 million, an increase of $58 million, or 16%, compared with the second quarter last year, primarily reflecting higher revenues, partially offset by higher PCL, income taxes and non-interest expenses. On an adjusted basis, net income was $445 million, an increase of $4 million, or 1%, compared with the second quarter last year. Revenue for the quarter was $2,129 million, an increase of $189 million, or 10%, compared with the second quarter last year. Higher revenue primarily reflects higher trading-related revenue, and underwriting fees, including those associated with the sale of Schwab shares, partially offset by the net change in fair value of loan underwriting commitments and the equity investment portfolio, and lower advisory fees. PCL for the quarter was $123 million, an increase of $68 million compared with the second quarter last year. PCL – impaired was $61 million, an increase of $62 million compared with the prior year, primarily reflecting a small number of impairments across various industries. PCL – performing was $62 million, an increase of $6 million compared with the prior year. The performing build this quarter reflects credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts. Reported non-interest expenses for the quarter were $1,461 million, an increase of $31 million, or 2%, compared with the second quarter last year, primarily reflecting higher technology and front office costs, and the impact of foreign exchange translation, partially offset by lower acquisition and integration-related costs and variable compensation. On an adjusted basis, non-interest expenses were $1,427 million, an increase of $99 million, or 7%. Quarterly comparison – Q2 2025 vs. Q1 2025 Wholesale Banking reported net income for the quarter was $419 million, an increase of $120 million, or 40%, compared with the prior quarter, primarily reflecting higher revenues and lower non-interest expenses, partially offset by higher PCL. On an adjusted basis, net income was $445 million, an increase of $105 million, or 31%. Revenue for the quarter increased $129 million, or 6%, compared with the prior quarter. Higher revenue primarily reflects higher underwriting fees, including those associated with the sale of Schwab shares, partially offset by lower trading-related revenue. PCL for the quarter was $123 million, an increase of $51 million compared with the prior quarter. PCL – impaired was $61 million, an increase of $28 million, primarily reflecting a small number of impairments across various industries. PCL – performing was $62 million, an increase of $23 million. The performing build this quarter reflects credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts. Reported non-interest expenses for the quarter decreased $74 million, or 5%, compared with the prior quarter, primarily reflecting lower variable compensation and acquisition and integration-related costs. On an adjusted basis, non-interest expenses decreased $56 million, or 4%. Year-to-date comparison – Q2 2025 vs. Q2 2024 Wholesale Banking reported net income for the six months ended April 30, 2025 was $718 million, an increase of $152 million, or 27%, compared with the same period last year, reflecting higher revenues, partially offset by higher PCL, non-interest expenses and income taxes. On an adjusted basis, net income was $785 million, an increase of $46 million, or 6%. Revenue was $4,129 million, an increase of $409 million, or 11%, compared with the same period last year. Higher revenue primarily reflects higher trading-related revenue, and underwriting fees, including those associated with the sale of Schwab shares, partially offset by the net change in fair value of loan underwriting commitments and the equity investment portfolio, and lower advisory fees. PCL was $195 million, an increase of $130 million compared with the same period last year. PCL – impaired was $94 million, an increase of $90 million, primarily reflecting a small number of impairments across various industries. PCL – performing was $101 million, an increase of $40 million. The current year performing provisions reflect credit impacts from policy and trade uncertainty, including overlays and an update to our macroeconomic forecasts. Reported non-interest expenses were $2,996 million, an increase of $66 million, or 2%, compared with the same period last year, reflecting higher technology and front office costs, and the impact of foreign exchange translation, partially offset by lower acquisition and integration-related costs, and the impact of a provision related to the U.S. record keeping and trading regulatory matters recorded in the same period last year. On an adjusted basis, non-interest expenses were $2,910 million, an increase of $199 million, or 7%. TABLE 11: CORPORATE (millions of Canadian dollars) For the three months ended For the six months ended April 30 January 31 April 30 April 30 April 30 2025 2025 2024 2025 2024 Net income (loss) – reported $ 8,215 $ (359) $ (664) $ 7,856 $ (1,255) Adjustments for items of note Amortization of acquired intangibles 43 61 72 104 166 Acquisition and integration charges related to the Schwab transaction – – 21 – 53 Share of restructuring and other charges from investment in Schwab – – – – 49 Restructuring charges 163 – 165 163 456 Impact from the terminated FHN acquisition-related capital hedging strategy 47 54 64 101 121 Gain on sale of Schwab shares (8,975) – – (8,975) – Civil matter provision – – 274 – 274 Less: impact of income taxes (346) 22 143 (324) 256 Net income (loss) – adjusted 1 $ (161) $ (266) $ (211) $ (427) $ (392) Decomposition of items included in net income (loss) – adjusted Net corporate expenses 2 $ (431) $ (370) $ (338) $ (801) $ (555) Other 270 104 127 374 163 Net income (loss) – adjusted 1 $ (161) $ (266) $ (211) $ (427) $ (392) Selected volumes Average number of full-time equivalent staff 23,250 22,748 23,270 22,995 23,354 1 For additional information about the Bank's use of non-GAAP financial measures, refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section of this document. 2 For additional information about this metric, refer to the Glossary in the second quarter of 2025 MD&A, which is incorporated by reference. Quarterly comparison – Q2 2025 vs. Q2 2024 Corporate segment's reported net income for the quarter was $8,215 million, compared with a reported net loss of $664 million in the second quarter last year. The higher net income primarily reflects the gain on the Schwab sale transaction, the prior year impact of a civil matter provision and higher revenue from treasury and balance sheet activities in the current quarter. Net corporate expenses increased $93 million compared to the second quarter last year, primarily reflecting higher governance and control costs. The adjusted net loss for the quarter was $161 million, compared with an adjusted net loss of $211 million in the second quarter last year. Quarterly comparison – Q2 2025 vs. Q1 2025 Corporate segment's reported net income for the quarter was $8,215 million, compared with a reported net loss of $359 million in the prior quarter. The higher net income primarily reflects the gain on the Schwab sale transaction and higher revenue from treasury and balance sheet activities, partially offset by restructuring charges. Net corporate expenses increased $61 million compared to the prior quarter. The adjusted net loss for the quarter was $161 million, compared with an adjusted net loss of $266 million in the prior quarter. Year-to-date comparison – Q2 2025 vs. Q2 2024 Corporate segment's reported net income for the six months ended April 30, 2025 was $7,856 million, compared with a reported net loss of $1,255 million in the same period last year. The higher net income primarily reflects the gain on the Schwab sale transaction, higher revenue from treasury and balance sheet activities and lower restructuring charges compared to the previous program in the same period last year. Net corporate expenses increased $246 million compared to the same period last year, primarily reflecting higher governance and control costs. The adjusted net loss for the six months ended April 30, 2025 was $427 million, compared with an adjusted net loss of $392 million in the same period last year. SHAREHOLDER AND INVESTOR INFORMATION Shareholder Services If you: And your inquiry relates to: Please contact: Are a registered shareholder (your name appears on your TD share certificate) Missing dividends, lost share certificates, estate questions, address changes to the share register, dividend bank account changes, the dividend reinvestment plan, eliminating duplicate mailings of shareholder materials or stopping (or resuming) receiving annual and quarterly reports Transfer Agent: TSX Trust Company 301-100 Adelaide Street West Toronto, ON M5H 4H1 1-800-387-0825 (Canada and U.S. only) or 416-682-3860 Facsimile: 1-888-249-6189 [email protected] or Hold your TD shares through the Direct Registration System in the United States Missing dividends, lost share certificates, estate questions, address changes to the share register, eliminating duplicate mailings of shareholder materials or stopping (or resuming) receiving annual and quarterly reports Co-Transfer Agent and Registrar: Computershare Trust Company, N.A. P.O. Box 43006 Providence, RI 02940-3006 or Computershare Trust Company, N.A. 150 Royall Street Suite 101 Canton, MA 02021 1-866-233-4836 TDD for hearing impaired: 1-800-231-5469 Shareholders outside of U.S.: 201-680-6578 TDD shareholders outside of U.S.: 201-680-6610 Email inquiries: [email protected] For electronic access to your account visit: Beneficially own TD shares that are held in the name of an intermediary, such as a bank, a trust company, a securities broker or other nominee Your TD shares, including questions regarding the dividend reinvestment plan and mailings of shareholder materials Your intermediary For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email [email protected]. Please note that by leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response. Access to Quarterly Results Materials Interested investors, the media and others may view the second quarter earnings news release, results slides, supplementary financial information, and the Report to Shareholders on the TD Investor Relations website at Quarterly Earnings Conference Call TD Bank Group will host an earnings conference call in Toronto, Ontario on May 22, 2025. The call will be audio webcast live through TD's website at 8:00 a.m. ET. The call will feature presentations by TD executives on the Bank's financial results for the second quarter and discussions of related disclosures, followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at on May 22, 2025, in advance of the call. A listen-only telephone line is available at 416‑340-2217 or 1-800-806-5484 (toll free) and the passcode is 2829533#. The audio webcast and presentations will be archived at Replay of the teleconference will be available from 5:00 p.m. ET on May 22, 2025, until 11:59 p.m. ET on June 6, 2025, by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is 8753393#. About TD Bank Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers. TD had $2.1 trillion in assets on April 30, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange. SOURCE TD Bank Group For further information contact: Brooke Hales, Senior Vice President, Investor Relations, 416-307-8647, [email protected], OR Elizabeth Goldenshtein, Senior Manager, Corporate Communications, 416-994-4124, [email protected]
Business Upturn
01-05-2025
- Business
- Business Upturn
Fairfax India Holdings Corporation First Quarter Financial Results
By GlobeNewswire Published on May 2, 2025, 02:05 IST NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES ( Note : All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from unaudited financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS ® Accounting Standards'), except as otherwise noted. This press release contains certain non-GAAP and other financial measures, including book value per share and cash and marketable securities, that do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar financial measures presented by other issuers. See 'Glossary of non-GAAP and other financial measures' at the end of this press release for further details.) TORONTO, May 01, 2025 (GLOBE NEWSWIRE) — Fairfax India Holdings Corporation (TSX: FIH.U) announces a net loss of $211.2 million ($1.57 net loss per diluted share) in the first quarter of 2025, compared to a net loss of $293.5 million in the first quarter of 2024 ($2.17 net loss per diluted share). The company's book value per share decreased 7.4% to $19.41 at March 31, 2025 from $20.96 at December 31, 2024, primarily due to unrealized losses recorded on the company's publicly listed investments. Highlights for the first quarter of 2025 included the following: The company recorded a net change in unrealized losses on investments of $222.9 million, principally from decreases in the fair values of the company's publicly listed investments in IIFL Capital (formerly IIFL Securities) ($106.8 million), IIFL Finance ($64.5 million), Fairchem Organics ($28.1 million), 5paisa ($10.0 million) and CSB Bank ($9.9 million), and private company investment in Sanmar ($19.2 million) (primarily due to a decrease in the publicly traded share price of its subsidiary, Chemplast), partially offset by an increase in the fair value of the company's private company investment in Seven Islands ($18.7 million). On February 20, 2025 the company completed its previously announced investment of an additional 10.0% equity interest in Bangalore International Airport Limited ('BIAL') for a purchase price of $255.0 million. In accordance with the agreement with Siemens Project Ventures GmbH ('Siemens'), the company paid an initial installment on the closing date and recognized a payable for securities purchased of $170.9 million, representing the second and third installments to be paid in the third quarters of 2025 and 2026, respectively. In February 2025, the company also increased the borrowing limit of its revolving credit facility from $175.0 million to $250.0 million, including the use of letters of credit. The company issued a letter of credit for $170.9 million in favour of Siemens equal to the deferred purchase price for the additional 10.0% equity interest in BIAL. The increased borrowing limit and Siemens letter of credit will be reduced over a period of approximately eighteen months in accordance with the terms of the amended credit agreement and letter of credit. Fairfax India is in strong financial health, with cash and marketable securities at March 31, 2025 of $113.0 million and $79.2 million available under its revolving credit facility. There were 134.8 million and 135.4 million weighted average common shares outstanding during the first quarters of 2025 and 2024, respectively. At March 31, 2025 there were 104,839,462 subordinate voting shares and 30,000,000 multiple voting shares outstanding. Unaudited balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release. Fairfax India's detailed first quarter report can be accessed at its website . Fairfax India Holdings Corporation is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India. For further information, contact: John Varnell, Vice President, Corporate Affairs (416) 367-4755 Information on CONSOLIDATED BALANCE SHEETS as at March 31, 2025 and December 31, 2024 (unaudited – US$ thousands) March 31, 2025 December 31, 2024 Assets Cash and cash equivalents 21,616 59,322 Bonds 114,823 180,507 Common stocks 3,419,382 3,381,206 Total cash and investments 3,555,821 3,621,035 Interest and dividends receivable 5,093 8,849 Income taxes refundable 175 174 Other assets 844 722 Total assets 3,561,933 3,630,780 Liabilities Accounts payable and accrued liabilities 1,106 1,300 Accrued interest expense 2,736 8,611 Income taxes payable 1,547 5,379 Payable to related parties 9,434 10,099 Payable for securities purchased 170,850 — Deferred income taxes 129,973 149,780 Borrowings 498,479 498,349 Total liabilities 814,125 673,518 Equity Common shareholders' equity 2,617,071 2,826,495 Non-controlling interests 130,737 130,767 Total equity 2,747,808 2,957,262 3,561,933 3,630,780 Book value per share $ 19.41 $ 20.96 Information on CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) for the three months ended March 31, 2025 and 2024 (unaudited – US$ thousands except per share amounts) First quarter 2025 2024 Income Interest 3,196 5,038 Dividends 2,998 7,049 Net realized gains on investments 616 116,924 Net change in unrealized losses on investments (222,862 ) (410,927 ) Net foreign exchange gains (losses) 3,245 (376 ) (212,807 ) (282,292 ) Expenses Investment and advisory fees 9,399 9,484 General and administration expenses 1,648 2,536 Interest expense 6,755 6,380 17,802 18,400 Loss before income taxes (230,609 ) (300,692 ) Recovery of income taxes (19,142 ) (7,483 ) Net loss (211,467 ) (293,209 ) Attributable to: Shareholders of Fairfax India (211,224 ) (293,504 ) Non-controlling interests (243 ) 295 (211,467 ) (293,209 ) Net loss per basic and diluted share $ (1.57 ) $ (2.17 ) Shares outstanding (weighted average) 134,839,462 135,365,933 Information on CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) for the three months ended March 31, 2025 and 2024 (unaudited – US$ thousands) First quarter 2025 2024 Net loss (211,467 ) (293,209 ) Other comprehensive income (loss), net of income taxes Item that may be subsequently reclassified to net earnings (loss) Unrealized foreign currency translation gains (losses), net of income taxes of nil (2024 – nil) 2,046 (5,708 ) Comprehensive loss (209,421 ) (298,917 ) Attributable to: Shareholders of Fairfax India (209,391 ) (298,926 ) Non-controlling interests (30 ) 9 (209,421 ) (298,917 ) This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the company's or an Indian Investment's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate' or 'believes', or variations of such words and phrases or state that certain actions, events or results 'may', 'could', 'would', 'might', 'will' or 'will be taken', 'occur' or 'be achieved'. Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; potential lack of diversification; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the company's information technology systems could significantly affect the company's business; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; trading price of subordinate voting shares relative to book value per share risk; weather risk; taxation risks; emerging markets; legal, tax and regulatory risks; MLI; economic risk; reliance on trading partners; and economic disruptions from conflicts in Ukraine and the Middle East and the development of other geopolitical events and economic disruptions worldwide. Additional risks and uncertainties are described in the company's annual information form dated March 7, 2025 which is available on SEDAR+ at and on the company's website at . These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the company. These factors and assumptions, however, should be considered carefully. Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws. GLOSSARY OF NON-GAAP AND OTHER FINANCIAL MEASURES Management analyzes and assesses the financial position of the consolidated company in various ways. Certain of the measures included in this press release, which have been used consistently and disclosed regularly in the company's Annual Reports and interim financial reporting, do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other companies. Those measures are described below. Book value per share – The company considers book value per share a key performance measure in evaluating its objective of long term capital appreciation, while preserving capital. This measure is also closely monitored as it is used to calculate the performance fee, if any, to Fairfax Financial Holdings Limited. This measure is calculated by the company as common shareholders' equity divided by the number of common shares outstanding. Cash and marketable securities – This measure is calculated by the company as the sum of cash, cash equivalents, short term investments and Government of India bonds. The company uses this measure to monitor short term liquidity risk. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
29-04-2025
- Business
- Yahoo
Universal Music Group N.V. Reports Financial Results for the First Quarter Ended March 31, 2025
Q1 2025 Results Highlights1 Revenue of €2,901 million increased 11.8% year-over-year, or 9.5% in constant currency, driven by solid growth in Recorded Music and Music Publishing. Recorded Music subscription revenue grew 11.5% year-over-year, or 9.3% in constant currency, and streaming revenue grew 2.9% year-over-year, or 0.3% in constant currency. Adjusted EBITDA of €661 million increased 11.8% year-over-year, or 10.0% in constant currency, and Adjusted EBITDA margin remained consistent at 22.8%. Top sellers included Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. GREEN APPLE. 1 This press release includes certain alternative performance indicators which are not defined in the IFRS Accounting Standards ('IFRS') issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release. HILVERSUM, The Netherlands, April 29, 2025 /PRNewswire/ -- Universal Music Group N.V. ("UMG" or "the Company") today announced its financial results for the first quarter ended March 31, 2025. "Our strong results – and our confidence about the future – reflect the execution of our strategic plan, including consistently developing and breaking the world's most successful artists and songwriters by connecting them with billions of fans in new and innovative ways," said UMG's Chairman and CEO Sir Lucian Grainge. Boyd Muir, COO and CFO of UMG, said, "2025 is off to a strong start, with multi-faceted revenue growth in recorded music and music publishing as well as healthy Adjusted EBITDA growth. Our focus on our key strategic initiatives positions us to achieve our mid-term financial objectives." UMG ResultsThree Months Ended March 31, % % (in millions of euros) 2025 2024 YoY const.(unaudited) (unaudited) Revenue 2,901 2,594 11.8 % 9.5 % EBITDA 603 490 23.1 % 21.6 % EBITDA margin 20.8 % 18.9 % 1.9ppAdjusted EBITDA 661 591 11.8 % 10.0 % Adjusted EBITDA margin 22.8 % 22.8 % 0.0pp Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency. Constant currency is calculated by taking current year results and comparing against prior year results restated at current year rates.Q1 2025 Results Revenue for the first quarter of 2025 was €2,901 million, an increase of 11.8% year-over-year, or 9.5% in constant currency, driven by healthy growth in Recorded Music and Music Publishing, as discussed further below. EBITDA for the quarter grew 23.1% year-over-year, or 21.6% in constant currency, to €603 million and EBITDA margin was 20.8%, compared to 18.9% in the first quarter of 2024. The margin improvement is a result of lower non-cash share-based compensation expenses of €58 million during the first quarter of 2025, compared to €101 million during the first quarter of 2024. Excluding non-cash share-based compensation expenses, Adjusted EBITDA for the quarter was €661 million, up 11.8% year-over-year, or 10.0% in constant currency, driven by revenue growth. Adjusted EBITDA margin was 22.8%, consistent with the first quarter of 2024, as the positive impact of operating leverage and cost savings related to our previously announced strategic realignment were offset by the negative impact of revenue and repertoire mix. Recorded MusicThree Months Ended March 31, % % (in millions of euros) 2025 2024 YoY const.(unaudited) (unaudited) Subscriptions and streaming revenue 1,605 1,466 9.5 % 7.2 % of which streaming 353 343 2.9 % 0.3 % of which subscription 1,252 1,123 11.5 % 9.3 % Downloads and other digital revenue 40 46 (13.0 %) (14.9 %) Physical revenue 300 255 17.6 % 15.4 % License and other revenue 296 222 33.3 % 29.8 % Recorded Music revenues 2,241 1,989 12.7 % 10.3 %Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.Q1 2025 Recorded Music revenue for the first quarter of 2025 was €2,241 million, up 12.7% year-over-year, or 10.3% in constant currency. Subscription revenue grew 11.5% year-over-year, or 9.3% in constant currency, primarily driven by the growth in global subscribers. Streaming revenue grew 2.9% year-over-year, or 0.3% in constant currency, as consumption continues to shift from better monetized video platforms to short-form platforms, which are not yet as well monetized. Physical revenue increased by 17.6% year-over-year, or 15.4% in constant currency, driven by vinyl sales growth in the U.S. and Europe. Downloads and other digital revenue declined 13.0% year-over-year, or 14.9% in constant currency, as download sales continue their industry-wide decline. License and other revenue increased 33.3% year-over-year, or 29.8% in constant currency, driven by particularly strong live income in certain markets, as well as by growth in synchronisation income. Top sellers for the quarter included releases from Kendrick Lamar, Sabrina Carpenter, Lady Gaga, The Weeknd and Mrs. GREEN APPLE, while top sellers in the prior-year quarter included releases from Taylor Swift, Noah Kahan, Morgan Wallen, Ariana Grande and Olivia Rodrigo. Music PublishingThree Months Ended March 31, % % (in millions of euros) 2025 2024 YoY const.(unaudited) (unaudited) Performance revenue 114 114 0.0 % (1.7 %) Synchronisation revenue 64 62 3.2 % 0.0 % Digital revenue 339 284 19.4 % 16.9 % Mechanical revenue 26 25 4.0 % 4.0 % Other revenue 12 11 9.1 % 0.0 % Music Publishing revenues 555 496 11.9 % 9.5 %Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.Q1 2025 Music Publishing revenue for the first quarter of 2025 was €555 million, up 11.9% year-over-year, or 9.5% in constant currency. Digital revenue grew 19.4% year-over-year, or 16.9% in constant currency, driven by continued growth in streaming and subscription revenue. Performance revenue was flat year-over-year, but declined 1.7% in constant currency, with a difficult comparison against higher society payments in the U.S. and stronger live activity in Europe in the prior year quarter. Synchronization revenue increased 3.2% year-over-year, and was flat in constant currency. Mechanical revenue grew by 4.0% on both a reported and constant currency basis. Merchandising and OtherThree Months Ended March 31, % % (in millions of euros) 2025 2024 YoY const.(unaudited) (unaudited) Merchandising and other revenues 112 114 (1.8 %) (5.1 %)Note: % YoY indicates % change year-over-year; % const. indicates % change year-over-year adjusted for constant currency.Q1 2025 Merchandising and Other revenue in the first quarter of 2025 was €112 million, a decrease of 1.8% year-over-year, or 5.1% in constant currency, as timing-related declines in touring merchandise sales were partially offset by healthy growth in direct-to-consumer sales. Conference Call Details The Company will host a conference call to discuss these results on Tuesday, April 29, 2025 at 6:15PM CEST. A link to the live audio webcast will be available on and a link to the replay will be available after the call. While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions. Investors and analysts interested in asking questions can pre-register for a dial-in line at under the "Financial Reports" tab. Cautionary Notice This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation). Forward-looking statements This press release may contain statements that constitute forward-looking statements with respect to UMG's financial condition, results of operations, business, strategy and plans. Such forward-looking statements may be identified by the use of words such as 'profit forecast', 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside UMG's control, including, but not limited to, UMG's inability to compete successfully and to identify, attract, sign and retain successful recording artists and songwriters, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, UMG's reliance on digital service providers, UMG's inability to execute its business strategy, the global nature of UMG's operations, changes in global economic and financial conditions, UMG's inability to protect its intellectual property and against piracy, challenges related to generative AI, UMG's inability to attract and retain key personnel, UMG's restructuring and reorganization activities, UMG's acquisitions and other investments, changes in laws and regulations (and UMG's compliance therewith) and the other risks that are described in UMG's 2024 Annual Report. Accordingly, UMG cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Alternative Performance Indicators This press release includes certain alternative performance indicators which are not defined in IFRS Accounting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these alternative performance indicators and reconciliations of non-IFRS to IFRS measures are included in the Appendix to this press release. About Universal Music Group At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit Contacts MediaJames Murtagh-Hopkins - communicationsnl@ InvestorsErika Begun - investorrelations@ Upcoming Calendar Annual General Meeting of Shareholders: May 14, 2025 Appendix Non-IFRS Alternative Performance Indicators and Reconciliations Reconciliation of Adjusted EBITDAThree Months Ended March 31, % (in millions of euros) 2025 2024 YoY(unaudited) (unaudited)EBITDA 603 490 23.1 % Non-cash share-based compensation expenses 58 101Adjusted EBITDA 661 591 11.8 % Definitions In this press release, UMG presents certain financial measures when discussing UMG's performance that are not measures of financial performance or liquidity under IFRS ("non-IFRS"). These non-IFRS measures (also known as alternative performance indicators) are presented because management considers them important supplemental measures of UMG's performance and believes that they are widely used in the industry in which UMG operates as a means of evaluating a company's operating performance and liquidity. UMG believes that an understanding of its sales performance, profitability, financial strength and funding requirements is enhanced by reporting the following non-IFRS measures. All non-IFRS measures should be considered in addition to, and not as a substitute for, other IFRS measures of operating and financial performance as described in this press release. In addition, it should be noted that other companies may have definitions and calculations for these non-IFRS measures that differ from those used by UMG, thereby affecting comparability. EBITDA and EBITDA margin UMG considers EBITDA and EBITDA margin, non-IFRS measures, to be relevant measures to assess its operating performance and the performance of its operating segments as reported in the segment data. It enables UMG to compare the operating performance of operating segments regardless of whether their performance is driven by the operating segment's organic growth or by acquisitions. It excludes restructuring expenses, which may impact period-to-period comparability. EBITDA margin is EBITDA divided by revenue. To calculate EBITDA, the accounting impact of the following items is excluded from the Operating Profit: i. amortization of intangible assets;ii. impairment of goodwill and other intangibles;iii. depreciation of tangible assets including right of use assets;iv. (gains)/losses on the sale of tangible assets, including right of use assets and intangible assets; andv. restructuring expenses. Adjusted EBITDA and Adjusted EBITDA margin The difference between EBITDA and Adjusted EBITDA consists of non-cash share-based compensation expenses and certain one-time items when applicable, that are deemed by management to be significant and incidental to normal business activity. Adjusted EBITDA margin is Adjusted EBITDA divided by revenue. UMG considers Adjusted EBITDA and Adjusted EBITDA margin, non-IFRS measures, to be relevant measures to assess performance of its operating activities excluding items that may be incidental to normal business activity and excluding non-cash share based compensation which may impact period-to-period comparability. View original content to download multimedia: SOURCE Universal Music Group N.V. Sign in to access your portfolio
