TD to cut up to $2.5 billion to get "back to winning"

As part of its growth strategy, TD will invest in “frontline distribution” to transform branches from transaction hubs to “high-value advice centres” that can lead to more deals. Photo by MANDEL NGAN/AFP via Getty Images/Postmedia files

Canada’s second-largest bank is vowing to cut billions of dollars’ worth of expenses and accelerate growth while getting “back to winning.”

Toronto-Dominion Bank (TD), which had suspended its medium-term targets in December, now expects 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, the ROE is expected to increase to 16 per cent, with an EPS growth of seven per cent to 10 per cent