Toronto-Dominion Bank (TD) has announced plans to open 100 new branches across its U.S. East Coast footprint by the end of 2028, alongside reporting a third-quarter profit of $4.6 billion for the period ended July 31, 2026. The expansion, which remains subject to regulatory approval, marks a significant investment in the bank’s American retail network as it continues to remediate past anti-money laundering (AML) compliance issues.finance.
Record Q3 2026 earnings beat expectations
TD Bank Group posted record third-quarter earnings of CAD 4.7 billion (approximately $4.6 billion USD), with adjusted earnings per share (EPS) rising 26% year-over-year to CAD 2.77. This performance comfortably exceeded analyst expectations, with revenue advancing 8% to CAD 16.92 billion from CAD 16.03 billion in the same period last year.
Reported diluted EPS reached CAD 2.74, up from CAD 1.89 in Q3 2025, while adjusted net income climbed 21% to CAD 4.7 billion. The strong results were driven by record earnings in TD’s Canadian personal and commercial banking operations, robust performance in wholesale banking, and improving momentum in U.S. banking.
Raymond Chun, Group President and CEO of TD Bank Group, described the quarter as “very strong,” citing broad-based growth across all business segments. Return on equity improved to 16%, and management expressed confidence that the bank is on track to significantly outperform its fiscal 2026 earnings-growth and ROE targets if current conditions persist.
U.S. banking segment shows strong growth
TD’s U.S. Banking division reported net income of CAD 1.07 billion (US$771 million) for the third quarter, representing a 41% increase on a reported basis and a 12% rise on an adjusted basis compared to the same period in 2025. The segment’s net interest margin reached a record 3.47%, reflecting improved profitability in the American market.
Return on equity for U.S. Banking climbed to 10.2%, underscoring what TD described as “growing momentum south of the border.” The division’s performance benefited from higher net interest income, disciplined expense management, and continued investment in digital capabilities and customer acquisition.
100 new U.S. branches planned through 2028
In a strategic move to deepen its retail presence, TD announced plans to open 100 new branches across its existing East Coast U.S. footprint by the end of calendar 2028, pending regulatory approval. Leo Salom, President and CEO of TD Bank U.S., said customers could visit some of the new locations as early as 2027, though the “bulk” of openings are scheduled for 2028.
The expansion follows the consolidation of approximately 91 branches over the past two years and is intended to reposition TD’s network in key metropolitan areas along the Atlantic seaboard. Kelvin Tran, TD’s Chief Financial Officer, emphasized that the new sites would be located within the bank’s existing geographic footprint, with a focus on driving organic growth and acquiring new customers.
“Our focus is driving organic growth, and building new branches to acquire new customers is part of that strategy,” Tran said in an interview. The bank expects to add approximately 450 new bankers to support the expanded network, with most of the investment funded through cost savings and no material expense growth anticipated from the expansion plan.
Regulatory context and AML remediation
The branch expansion plan comes as TD continues to address its U.S. anti-money laundering consent order, which has required significant investment in compliance infrastructure and oversight. In Q3 2026, the bank earmarked approximately $550 million for AML remediation efforts while maintaining its dividend and delivering strong earnings.
Salom reiterated that the expansion does not change the bank’s focus on satisfying its U.S. AML consent order, with any new branch openings subject to regulatory approval. TD has been working closely with U.S. regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, to strengthen its compliance frameworks and risk management practices.
Management expressed confidence in the branch expansion timeline, indicating that work is ongoing to identify additional opportunities through 2030 as the bank continues to invest in organic growth. The plan represents a significant investment in frontline distribution and is expected to support long-term growth in the U.S.
Credit guidance and outlook
TD lowered its credit loss guidance to the lower end of its prior range, reflecting improved asset quality and economic conditions. The bank’s provision for credit losses decreased to 0.37% of loans in Q3 2026, down from higher levels in previous quarters.
Management expects 2027 expense growth to be lower than in 2026, even with the added investment in branches and bankers. The bank maintained its quarterly dividend at CAD 1.02 per share, reflecting confidence in its capital position and earnings trajectory.
TD shares gained in pre-market trading following the earnings announcement, with investors responding positively to the strong results and growth outlook. Analysts noted that the combination of record earnings, disciplined expense management, and strategic U.S. expansion positions TD well for continued performance in a challenging macroeconomic environment.
Market reaction and analyst commentary
The earnings beat and expansion announcement were well-received by market participants, with TD’s stock price rising in early trading. Adjusted EPS of CAD 2.77 surpassed the consensus analyst estimate of CAD 2.47 by approximately 12%, while revenue of CAD 16.93 billion exceeded estimates of CAD 15.17 billion.
Morningstar analysts noted that the branch expansion plan is expected to deepen TD’s reach in key U.S. markets, with most of the investment funded through cost savings. The bank’s ability to deliver strong earnings while investing in compliance and growth demonstrates the underlying strength of its franchise, according to industry observers.