• TD targets up to C$2.5 billion in annual savings via AI, automation and vendor consolidation
• Medium-term targets return after last year’s U.S. enforcement actions
• CEO Raymond Chun promises accountability and capital discipline
• COO Taylan Turan hired to drive transformation and efficiency
• Goals include 16 percent ROE by 2029 and mid-50s efficiency ratio
• U.S. CEO Leo Salom reports stable deposits and advancing AML remediation
• Next-gen transaction monitoring and first-phase AI solutions rolled out
• 1,100 U.S. branches, 29,000 staff and 10 million clients
• 500 U.S. advisers to deepen relationships and lift fee income
• Digital acquisition to 50 percent, adoption to 70 percent, self-serve above 90 percent

TD said Monday it will lean on automation, artificial intelligence and digital distribution to generate C$2.5 billion in annual cost savings, outlining the plan at an investor day in Toronto.

The program revives medium-term targets paused nearly a year ago after TD pleaded guilty to money-laundering-related charges and its U.S. retail bank was placed under an asset cap. 

“Make no mistake, everybody: We will get this work done, and every leader in this organization is accountable,” CEO Raymond Chun told attendees.

Following a strategic review, Chun said Canada’s second-largest lender aims for C$2 billion to C$2.5 billion in annualised savings by moderating expense growth, moving more transactions to digital channels, boosting productivity, optimising the branch footprint, deploying AI and automation, and consolidating vendor spending. 

“This effort is far-reaching and absolutely necessary,” said Chun, who became CEO in February. Three months later, the bank announced a 2 percent workforce reduction as part of restructuring.

Executives pledged strict capital discipline. “We’re purposely changing certain parts of our culture,” Chun said. “Accountability at all levels is non-negotiable.” 

He highlighted the hiring of chief operating officer Taylan Turan to “accelerate our change agenda, reshape operations and drive bank-wide efficiency.”

By fiscal 2029, TD is targeting a 16 percent adjusted return on equity, up from 13 percent for fiscal 2026, and 7 to 10 percent adjusted earnings-per-share growth. 

Chun aims to push the efficiency ratio from 58 percent into the mid-50s by 2029. “We are getting back to winning,” he said.

Outlining the U.S. path, TD Bank U.S. CEO Leo Salom called recent years “a very challenging period.” 

Since last October’s historic AML settlement, TD has “maintained stable deposit levels with minimal customer attrition,” he said, citing progress on remediation. 

“We have onboarded an outstanding AML leadership team, we’ve elevated our investigative capabilities, we’ve launched our next-generation transaction monitoring system, and we’ve implemented the first phase of our AI and machine learning solutions.” 

Most management remediation actions should be completed by year-end.

TD operates about 1,100 U.S. branches with roughly 29,000 employees, serving 10 million clients and contributing about 26 percent of group revenue. 

While TD has strong footholds from Philadelphia to New England, Salom said the bank lacks “relationship depth” with many of its clients,” 

The lender will deepen ties by hiring 500 U.S. financial advisers, boosting fee income and retooling branches toward advice. 

Since 2020, TD has refreshed 175 locations, closed 174 and opened or relocated 62, with another 10 percent of the network to be closed or moved. Branches remain vital for deposit gathering and complex product sales, Salom added.

TD has exited businesses where it lacked scale, including winding down a US$3 billion U.S. point-of-sale financing portfolio. 

The bank wants digital acquisition to reach 50 percent of total sales, digital adoption to hit 70 percent and digital self-serve to exceed 90 percent. 

Applying AI at scale offers “the biggest opportunity” to cut unit costs, Salom said. 

“Scale is being redefined in the U.S. continuously,” he added, arguing process re-engineering and AI will make TD more cost-competitive.