Toronto-Dominion Bank reported fourth-quarter profit of $3.2 billion, down 10 per cent from $3.6 billion last year, missing analyst expectations by 7 per cent, according to data from S&P Global Market Intelligence. (The Logic)

Talking point: Despite capital markets profit doubling to $494 million, earnings were weighed down by $190 million in restructuring charges, with another $125 million pre-tax expected in the first quarter of 2026. Profit was also affected by TD’s move to shrink U.S. retail assets by more than 10 per cent by selling loans to stay under the regulatory cap levied, the bank said Thursday. “We’re working with the regulator to ensure that we can demonstrate sustainability over the long term,” Leo Salom, TD’s U.S. retail group head, said in an earnings call. Expenses rose 9 per cent to $8.8 billion, driven by higher staff-related costs and continued spending on governance and anti-money-laundering remediation efforts. The lender also put more money aside for bad loans than it did last year—$537 million, up from $430 million.