TD Bank Announces Major Balance Sheet Restructuring, $50 Billion Asset Sale for Fiscal 2025

Oct 10, 2024, 06:43 PM

TD Bank has announced a comprehensive balance sheet restructuring plan for fiscal year 2025. The bank plans to reduce its assets by about 10%, which will involve managing down or selling certain loan portfolios. TD Bank will also reposition its U.S. investment portfolio by selling up to $50 billion of lower-yielding investment securities and reinvesting the proceeds. The restructuring is expected to incur one-time costs of up to $1.5 billion after-tax. TD's incoming CEO acknowledged the difficulties ahead, stating that the necessary changes will put the bank on a stronger foundation. The fiscal year 2025 will be a transition year for the bank's U.S. retail operations as it undertakes these changes to comply with and maintain a buffer to the asset cap. The bank anticipates that these costs will exert downward pressure on short-term earnings, according to a TD executive.