Toronto, May 25, 2026, 12:02 EDT
- TD’s shares in Toronto climbed about 1.2% in late-morning trading, hitting a 52-week high.
- The S&P/TSX Composite set a fresh record as investors turned their focus to Canadian bank earnings.
- TD is set to report Q2 numbers May 28. Margin pressure and U.S. compliance costs remain key issues.
Toronto-Dominion Bank shares climbed to a new 52-week high on Monday as Canada’s main stock index hit a record. Investors bought into major Canadian banks before the upcoming quarterly results.
TD was at C$156.55 as of 11:46 a.m. EDT, up 1.2%. Shares got as high as C$157.16 earlier and opened at C$155.77. By that point, volume was around 590,900, according to Google Finance.
TD’s timing is key, with fiscal Q2 results coming Thursday before the bell and a call set for 9:30 a.m. ET. Investors will see if the stock’s rebound is driven by earnings or just a lift in Canadian financials.
Toronto stocks traded while U.S. markets were closed for Memorial Day. TMX’s settlement schedule had Canadian exchanges open and U.S. markets shut on May 25. The NYSE calendar also lists Memorial Day as a 2026 holiday.
TD’s shares on the NYSE last changed hands at $111.87 on Friday, market data showed. The Toronto-listed stock took over trading on Monday.
S&P/TSX Composite climbed 0.7% to 34,778.98 by 10:21 a.m. ET, with a push from materials stocks, Reuters said. Investors looked for relief as reports pointed to some movement in U.S.-Iran talks. Brian Madden at First Avenue Investment Counsel told Reuters there have been “repeated false hopes” on a deal and he is “not 100% convinced.” Reuters
Bank stocks were already climbing before Monday. Reuters said on Friday that Canadian financials had gained 12.1% since the start of 2026. Derek Holt, Scotiabank’s head of capital markets economics, said banks had “come roaring back” going into the mid-year earnings test. Reuters
The sector faces the same test. Bank of Montreal and Scotiabank will report Wednesday, then Royal Bank of Canada follows on Thursday alongside TD. The group gives investors a fast look at credit quality, loan demand and net interest margin—the spread between what banks make on loans and pay out for deposits and funding.
TD faces questions on whether profit growth can balance out weaker revenue. Visible Alpha, a unit of S&P Global Market Intelligence, expects TD’s revenue to grow less than 1%, but net income to climb 8% from a year earlier. The firm said investors remain wary of margin pressure and what happens with capital following restructuring and U.S. regulatory scrutiny.
TD set a strong tone for its fiscal first quarter, posting adjusted earnings of C$4.2 billion, up 16% on the year. CEO Raymond Chun said there was “momentum across our businesses.” Canadian personal and commercial banking posted record net income of C$2.04 billion. The U.S. arm continued to face higher costs for governance and control, including spending tied to anti-money-laundering fixes. TD Bank Financial Group – Media Room
Main risk is the market may be too optimistic. If credit costs jump, with more money put aside for loans that might turn bad, earnings could take a hit. Earnings could also come under pressure if oil prices or bond yields rise again and the Middle East peace story unwinds.
TD Bank, N.A. still faces pressure in the U.S. The Office of the Comptroller of the Currency hit the bank with a $450 million civil penalty in 2024 and put limits on growth after finding problems with compliance under the Bank Secrecy Act and anti-money-laundering rules, which are supposed to prevent illegal funds from being funneled through banks. The asset cap continues to block U.S. expansion until the bank fixes the issues and regulators clear it.
TD shares are showing that investors are willing to give the bank the benefit of the doubt for now. Thursday brings earnings, and that’s when the trade gets tested.
Related articles: Earnings Reports
