Toronto-Dominion Bank beat analysts’ earnings expectations after reporting higher fourth-quarter profits on Thursday, driven by better performances in its United States retail business, wealth management and wholesale banking segments.

TD’s net income for the three months ending Oct. 31 was $3.28 billion, compared to $3.63 billion during the same period a year ago, resulting in net earnings per share of $1.82.

Its adjusted net income — which removes the impact of non-recurring items — was $3.9 billion, compared to $3.2 billion last year, resulting in adjusted earnings per share of $2.18, which beat analysts’ expectations of about $2.01 per share.

For fiscal 2025, the bank’s net income was 20.5 billion, compared to $8.8 billion last year, while its adjusted net income was 15.02 billion in fiscal year 2025, compared to $14.2 billion last year.

TD also announced it is increasing its quarterly dividend by three cents to $1.08 a share.

“TD had a strong fourth quarter, delivering robust fee and trading income in our markets-driven businesses as well as volume growth year-over-year in Canadian Personal and Commercial Banking, capping a year of strong performance,” chief executive Raymond Chun said in a statement on Thursday. “Throughout 2025, we took decisive action to strengthen our bank and shape TD for the future.”

TD’s U.S. retail segment had adjusted net income of about $1 billion, up $227 million, or 29 per cent, compared to the fourth quarter last year. Net income in its Wealth Management and Insurance segment increased year over year by $350 million to $699 million, while its Wholesale Banking had net income of $494 million, an increase of $259 million from a year ago.

The bank also continued to take steps to “reduce its cost base and achieve greater efficiency” in the fourth quarter, TD said after taking a restructuring charge of $190 million. The restructuring program began in the second quarter.

“In connection with this program, the bank incurred $686 million pre-tax of restructuring charges during the year ended Oct. 31, 2025, which primarily related to employee severance and other personnel-related costs, asset impairment and other rationalization, including certain business wind-downs, and

real estate optimization,” it said. The bank expects to incur additional restructuring charges next quarter of about $125 million pre-tax to conclude its restructuring program, with total charges of about $825 million pre-tax.

“The restructuring program generated savings of approximately $100 million pre-tax in 2025,” TD said. “The bank expects the program to generate total pre-tax fully realized annual program savings of approximately $750 million, including savings from an approximate three per cent workforce reduction.”

In September, Canada’s second-largest bank said it was aiming to cut billions of dollars’ worth of expenses and accelerate growth while getting “back to winning.”

The bank, which last December suspended its medium-term targets, said it expected to achieve a return on equity (ROE) of 13 per cent, grow its earnings per share (EPS) by six per cent to eight per cent and reduce expense growth to three per cent to four per cent in fiscal 2026.

By fiscal 2029, it expects its ROE to increase to 16 per cent, with an EPS growth of seven per cent to 10 per cent.

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These targets are similar to the ones TD had before it suspended making them last December when it undertook a “broad and detailed” review of its strategies after being fined about US$3.1 billion and ordered to cap the expansion of its retail banking business in October by the United States Department of Justice and other regulators for failing to monitor money laundering activities at its branches.

To accelerate its growth, the bank in September said it wanted to boost digital sales, enhance productivity at its branch network, add sales capability to key segments and accelerate fee-income growth in its wealth, insurance and securities segments.