TD Bank (TD) Barclays 24th Annual Global Financial Services Conference summary

Branch expansion and growth strategy

• Plans to open 100 new branches by end of 2028, focusing on densifying existing markets and expanding in the Southeast, particularly Florida and the Carolinas.

• Expansion aims to strengthen positions in top markets like New England, New York, New Jersey, and Philadelphia, aligning with demographic trends.

• Confident in regulatory discussions, with expansion subject to ongoing remediation and consent order requirements.

AML remediation and expense management

• Significant progress in AML remediation, including a rebuilt management team, upgraded policies, new risk rating, and transaction monitoring systems.

• Entering a validation phase where implemented actions are audited and reviewed by regulators.

• AML remediation expenses for 2026 increased to $550 million, mainly due to a look-back exercise and accelerated management actions.

• Expectation for expense moderation in the second half of 2027, with more than half of remediation costs to be permanently reduced.

Structural cost savings and AI initiatives

• Targeting CAD 750 million in structural cost reductions, with CAD 200 million achieved this year through store optimization and business discontinuations.

• Organizational health initiatives and AI adoption are contributing to cost moderation and increased capacity.

• AI tools like GitHub Copilot have improved developer productivity by 30-40%, and AI is being used in AML and call center operations.

• AI-driven efficiencies are expected to generate significant long-term savings and transform internal processes.