TD to buy back $10-billion worth of shares after banking watchdog eased buffers

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingTD to buy back $10-billion worth of shares after banking watchdog eased buffersCEO Raymond Chun has said the lender could return more than $13 billion to shareholders in fiscal 2027Last updated 37 minutes ago TD Bank said the share buyback will represent about 3.74 per cent of the bank’s issued and outstanding common shares. Photo by Cole Burston/BloombergToronto Dominion Bank says it intends to repurchase up to $10-billion worth of common shares by next July after Canada’s banking regulator lowered the amount of money the Big Six need to keep aside for financial shocks.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe new share buyback program will be subject to approval from the Office of the Superintendent of Financial Institutions (OSFI), Canada’s top banking regulator, but it won’t exceed 61 million common shares and will represent about 3.74 per cent of the bank’s issued and outstanding common shares.This advertisement has not loaded yet, but your article continues below.OSFI in June reduced the domestic stability buffer, allowing banks to have a common equity tier 1 (CET1) ratio, which measures how much capital banks have with respect to their risk-weighted assets, of 11 per cent, instead of 11.5 previously.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe decision frees up billions of dollars in capital for the banks, but some analysts say an uncertain economy, weak loan demand and unattractive acquisition targets are making it challenging for banks to deploy that excess cash effectively.Canada’s biggest banks have been well in excess of that figure, with CET1 ratios of more than 13 per cent in recent years.TD’s CET1 ratio as of July 31 was about 14.3 per cent. Chief executive Raymond Chun in August said the lender could return more than $13 billion to shareholders in fiscal 2027 in its bid to reach its CET1 ratio target of 13 per cent, though its primary goal would be to use any extra capital for organic growth.“If we don’t have a need for or have excess capital, we would consistently return capital back to our shareholders, and I see that playing through in 2027,” he said on a call with analysts at the time.TD’s stock has risen 31.5 per cent this year as of Tuesday’s close.The bank completed the repurchase of $7-billion worth of common shares on Sept. 25.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.