The Toronto-Dominion Bank

Good morning, everyone, and welcome to the TD Bank Group Q3 2025 Earnings Conference Call. I would now like to turn the meeting over to Ms. Brooke Hales, Head of Investor Relations. Please go ahead, Ms. Hales.

Thank you, Operator. Good morning and welcome to TD Bank Group's third quarter 2025 results presentation. We will begin today's presentation with remarks from Raymond Chun, the bank's CEO, followed by Leo Salam, President and CEO, TD Bank, America's most convenient bank, after which Kelvin Tran, the bank's CFO, will present our third quarter operating results. Ajay Bambwale, Chief Risk Officer, will then offer comments on credit quality, after which we will invite questions from pre-qualified analysts and investors on the phone. Also present today to answer your questions are Sona Mehta, Group Head, Canadian Personal Banking, Barbara Hooper, Group Head, Canadian Business Banking, Tim Wiggin, Group Head, Wholesale Banking and President and CEO, TD Securities, and Paul Clark, Senior Executive Vice President, Wealth Management. Please turn to slide two. Our comments during this call may contain forward-looking statements, which involve assumptions and have inherent risks and uncertainties. Actual results could differ materially. I would also remind listeners that the bank uses non-GAAP financial measures to arrive at adjusted results. The bank believes that adjusted results provide readers with a better understanding of how management views the bank's performance. Ray, Leo, and Kelvin will be referring to adjusted results in their remarks. Additional information about non-GAAP measures and material factors and assumptions is available in our Q3 2025 report to shareholders. With that, let me turn the presentation over to Ray.

Thank you, Brooke, and good morning, everyone. We had another strong quarter, which I'm looking forward to discussing in a minute. But first, I'd like to share my thoughts on the external environment. Global trade dynamics continue to be fluid. It was encouraging last week to hear the Prime Minister and President are intensifying their efforts to resolve ongoing trade challenges. However, there is still much work ahead with KUSMA or USMCA renegotiation set for next year. While Canadian companies have benefited from that trade agreement, Tariffs, and especially sector-specific tariffs, create business uncertainty and economic distortions with significant impacts to the most exposed sectors. Despite this, the Canadian and U.S. economies have shown resilience, though momentum has slowed. These remain early days. It will likely be a long road before the full impact of tariffs is well understood. This is a time for bold, decisive leadership that unlocks Canada's economic potential and strengthens our productivity and resilience. I'm encouraged by the federal government's focus on removing internal trade barriers, catalyzing major projects in partnership with Indigenous peoples and diversifying export markets. This moment is an opportunity to build stronger, more resilient economies. At TD, we stand ready to meet that moment and work with governments and private sectors to strengthen communities across our footprint. And no matter how the external environment evolves, we'll be there to support our clients. It's a privilege to serve over 28 million households and businesses, and we will continue working hard every day to understand their needs and help them achieve their goals. With that, let's turn to the next slide. With three quarters of the year done, I am pleased with what we have achieved. We continue to act decisively to support TD's future. Our momentum continued this quarter with TD's announcement of a strategic relationship between Fiserv and TD Merchant Solutions. This will simplify TD's portfolio and reduce costs, improving the bank's financial performance over time. It will also elevate the experience for our Canadian business banking clients, delivering best-in-class solutions. We have continued to identify opportunities to innovate, to drive efficiency and operational excellence. Calvin will provide more details on our efforts to structurally reduce costs across the bank in his remarks. As you know, the bank will host an investor day on September 29th. We are very excited to share TD strategy and medium-term outlook with all of you next month. Before I turn to Q3 results, I wanted to personally thank Alan McGibbon for his leadership and dedication to the bank. TD and I have greatly benefited from his many contributions and keen insights. I also want to congratulate John McIntyre, who will become the chair of TD's board of directors effective Monday. John's deep financial expertise will help him guide our board in the coming years. He will continue to be invaluable to me and my leadership team as we work to deliver on our strategy and drive long-term value. Please turn to slide four. In Q3, the bank delivered a strong quarter with earnings of $3.9 billion and EPS of $2.20. We saw robust fee and trading income in our markets-driven businesses and volume growth year over year in Canadian personal and commercial banking. TD delivered positive operating leverage this quarter, reflecting strong revenue growth that offset elevated expenses driven by governance and control costs and investments to drive business growth. Impaired PCLs decreased quarter over quarter, reflecting strong credit performance, and we added to our performing reserves for policy and trade uncertainty. taking a prudent approach with almost 600 million in reserves added year-to-date. Ajay will share more details shortly in his remarks. The bank's Q3 CET1 ratio was 14.8%, reflecting strong capital generation in the quarter. As of quarter end, we were over halfway through our share buyback with 46 million shares repurchased for a total of over $4 billion Canadian dollars. Please turn to slide five. In Q3, we demonstrated disciplined execution across our businesses. In Canadian personal and commercial banking, we delivered a strong quarter with record revenue, earnings, deposits, and loan volumes. Resolve volumes surpassed 400 billion, driven by strong performance across our distribution channels. We continue to deliver robust loan growth in cards. In this quarter, cards acquisition was the highest it's been in almost a decade. In the business bank, loans were up 6% year over year, reflecting growth across our commercial business. We also saw record retail originations in TD Auto Finance. We delivered continued momentum in U.S. retail with core loans up 2% year over year. U.S. bank card balances were up 12% year over year, reaching a new milestone with $3 billion U.S. in balances. In our U.S. wealth business, total client assets were up 12% year over year, with mass affluent client assets up 26% year over year. This quarter, we made significant progress on our U.S. balance sheet restructuring. We completed the investment portfolio repositioning announced last October, and achieved our targeted 10% asset reduction. The bank also continued to prioritize and execute on our AML remediation. Leo will provide more details in his remarks. In wealth management and insurance, we delivered record earnings and assets in wealth and strong underlying business performance in insurance. TD Asset Management won key institutional mandates globally and domestically and continued to take share in its growing ETF franchise. We had a strong quarter in direct investing, with trades per day up 18% year-over-year, as we continued to gain traction in partial shares and our active trader platform. TD Insurance delivered strong premium growth year-over-year and continued to enhance its client acquisition strategies. In wholesale banking, we continue to demonstrate the power of our broader platform, delivering over $2 billion in revenue for the third consecutive quarter. We are seeing broad-based revenue growth as market volatility normalizes and our capital markets and advisory businesses accelerate. Please turn to slide six. This quarter, we launched TD AI Prism, a significant step forward in our effort to harness the power of AI. TD AI Prism is designed to deliver greater client personalization through accelerated AI-driven insights and support client services and growth. And in TD Securities, we launched a virtual AI assistant which queries our equity research library and synthesizes about 8,500 proprietary research reports covering nearly 1,300 companies in seconds. This tool enhances the productivity and effectiveness of our front office institutional sales, trading, and research professionals, enabling them to answer client inquiries with speed. We continue to invest in enabling capabilities such as trusted data and AI. We recognize that leadership in digital and mobile is absolutely critical. We're looking forward to sharing more about our strategies and investments in these areas at our investor day next month. Please turn to slide seven. So before I turn it over to Leo, I want to thank our colleagues across the bank. Every day, you are working to deliver for our clients, drive shareholder value, and build TD's future. Thank you for all that you do. With that, Leo, over to you.