EPS of $2.20 beat estimates of $2.05; revenue of $14.06B beat estimates of $13.78B. TD is showing progress in domestic banking and markets as it shifts capital from US banking. Growth remains exposed to economic and trade uncertainty, and Markets gains could have variability. A US portfolio reduction should be complete in fiscal 4Q, and may exceed the 10% goal as assets were 9% below the cap in July. A costly investment-portfolio repositioning is complete, but it might add $500 million in interest income in 2025. TD expects 2025 costs to rise near the top of its 5-7% forecast, and sees mid-single-digit increases in 2026. The company says it can contain provision ratios within guidance of 45-55 bps in 2025. Restructuring is progressing with C$100-C$200 million left, and potential savings of C$100 million in 2025 and C$550-C$650 million annually over time. We have seen a couple of broker target upgrades on the news, and we think the stock reaction is more profit-taking or repositioning as opposed to a call on the quarter or outlook. The stock has had a good run, and is still up 31% for the year. We remain confident.
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