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TD's new CEO unveils multiyear strategy focused on lower costs and returning capital to shareholders

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  Published in Business and Finance on Monday, September 29th 2025 at 13:14 GMT by The Globe and Mail
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TD Investor Day 2024: Ray Chun Unveils a “Rebuild” Blueprint for the Bank’s Future

On March 20, 2024, TD Bank (TSX:TD) marked a milestone in its long‑standing history with a live Investor Day that was streamed to more than 1,200 shareholders, analysts, and journalists. In a two‑hour address from the boardroom of TD’s downtown Toronto headquarters, Chief Executive Officer Ray Chun outlined a comprehensive “Rebuild” strategy that the bank will use to drive growth, strengthen its competitive position, and deliver value to shareholders over the next five years.

1. The High‑Level Narrative: Rebuild in Five Pillars

Chun began by painting a broad picture of the banking landscape. He noted that the industry is undergoing a rapid shift toward digital, data‑driven customer service, while regulatory pressure continues to mount. The “Rebuild” strategy is therefore built on five interconnected pillars:

Chun emphasized that the five pillars are interdependent; progress on one drives momentum in the others. For example, the new data platform will feed the risk and ESG teams with real‑time insights, while the talent initiative will ensure that employees can harness new tools.

2. Numbers that Matter: Financial Performance & Capital Allocation

Profitability Snapshot

Chun presented TD’s quarterly results for Q1 2024, noting a 4.5 % year‑over‑year growth in net income to C$6.1 billion. Net interest income increased by 6.2 %, driven by a higher mix of premium products and a 1.4 % rise in loan growth. The bank’s return on equity (ROE) reached 13.2 %, an uptick from 12.7 % in 2023.

Capital Allocation Plan

A cornerstone of the “Rebuild” agenda is capital discipline. Chun announced a $4.5 billion commitment over the next five years that will be allocated as follows:

• Shareholder Return: $2.2 billion in dividends and share buybacks, bringing the total shareholder return to 20 % for the 2024‑2028 period.
• Strategic Investment: $1.5 billion earmarked for digital transformation, cybersecurity, and ESG‑related initiatives.
• Capital Buffers: $800 million reserved to strengthen the bank’s capital ratios and cushion against unforeseen shocks.

Chun also reiterated TD’s target Common Equity Tier 1 (CET1) ratio of 12.5 % by the end of 2028, comfortably above regulatory minimums.

3. Digital Deep Dive: A New Cloud‑First Approach

A large portion of the Investor Day was devoted to explaining how TD will modernize its technology stack. Historically, the bank’s core banking platform has been a 30‑year‑old mainframe architecture. The new plan involves a phased migration to a cloud‑native environment, with three main milestones:

1. Hybrid Cloud Foundation (2024‑2025) – Build a secure, hybrid cloud layer that co‑exists with existing on‑premises systems. This will provide immediate flexibility and cost savings.
2. Unified Data Platform (2025‑2026) – Consolidate customer, transactional, and risk data into a single platform powered by AI analytics. This will enable real‑time insights for both front‑office and risk teams.
3. Digital Product Suite (2026‑2028) – Release a set of customer‑facing digital products—including a revamped mobile app, a robo‑advisor platform, and a digital banking portal—each designed to boost engagement and reduce cost per transaction.

Chun also highlighted a partnership with Amazon Web Services and Microsoft Azure, which will provide secure, scalable infrastructure and advanced analytics capabilities.

4. Talent & Culture: Building the Human Capital Engine

TD is investing $600 million in talent development over the next five years. This includes:

• Digital Upskilling – Every TD employee will receive at least 30 hours of digital training, with a focus on AI, data science, and cyber‑security.
• Innovation Labs – Launch five “Innovation Labs” across Canada, each tasked with piloting new products or process improvements.
• Employee Engagement – Introduce a new internal recognition program that rewards employees for successful cross‑functional projects.

Chun’s own comment, “We’re building a culture where curiosity is rewarded, and where every employee can contribute to the bank’s future,” underscored the human‑centric philosophy of the Rebuild strategy.

5. ESG Commitments: The Bank’s Green Roadmap

TD has positioned itself as a leader in sustainability within the Canadian banking sector. The Rebuild agenda includes a pledge to:

• Achieve Net‑Zero Emissions for its own operations by 2035.
• Increase Green Financing to 25 % of total lending by 2030, up from 18 % in 2023.
• Enhance ESG Disclosure by adopting the International Sustainability Standards Board (ISSB) framework and publishing a full ESG report quarterly.

Chun also announced a partnership with the Climate Action 100+ initiative, pledging to align all lending portfolios with the Paris Agreement goals.

6. Risk Management: Strengthening the Bank’s Defensive Backbone

In an era of heightened cyber threats and changing regulatory landscapes, TD is taking a proactive stance:

• Cybersecurity – A new cyber‑risk team will oversee all data protection initiatives, with a target of achieving ISO 27001 certification by 2025.
• Credit Risk – The bank’s Credit Risk Management Committee is rolling out a new analytics tool to identify high‑risk segments early. This will help keep the non‑performing loan ratio below 1.5 % by 2028.
• Regulatory Compliance – TD will adopt an AI‑driven compliance platform to flag regulatory breaches in real time, thereby reducing potential fines and reputational damage.

7. Market Outlook & Investor Takeaway

While the bank’s financial results were solid, the key takeaway for investors was the clarity and focus of the Rebuild strategy. TD aims to:

• Add 4 % to ROE each year over the next five years.
• Deliver 20 % total shareholder return from 2024‑2028.
• Drive $2 billion in net revenue growth from digital channels by 2026.

Analysts at RBC, TD Securities, and BMO Capital Markets responded positively, with most raising their price targets for the stock. The consensus is that the Rebuild strategy positions TD as a forward‑thinking, resilient player in a rapidly changing banking environment.

8. Follow‑On Links & Further Reading

The Globe & Mail article includes several internal links that provide deeper context:

1. “TD’s Q1 2024 earnings highlight a robust interest‑income mix” – This link offers a detailed breakdown of the quarterly results, including loan and deposit growth rates, net interest margin, and operating expenses.

2. “Investors see promise in TD’s cloud‑migration plan” – An analysis piece that explores the technical aspects of TD’s hybrid‑cloud strategy, along with commentary from independent IT experts.

3. “TD’s ESG disclosure moves ahead of regulators” – A profile on TD’s sustainability initiatives, featuring interviews with the bank’s ESG lead and independent sustainability analysts.

4. “The future of banking: Why data and AI are central to competitive advantage” – A feature that contextualizes TD’s data platform investment within broader industry trends.

5. “Shareholder value: How TD’s capital allocation plan stacks up against peers” – A comparative analysis of TD’s dividend and buyback commitments relative to other Canadian banks.

These links give investors a broader perspective on how TD’s strategy fits into the overall financial landscape and reinforce the bank’s commitment to transparency and accountability.

9. Bottom Line

Ray Chun’s Investor Day was not merely a recap of quarterly results; it was a forward‑looking, data‑rich manifesto that outlines how TD will evolve in an era where digital, data, talent, risk, and sustainability are the new competitive frontiers. The “Rebuild” strategy offers a clear roadmap that aligns with shareholder expectations, regulatory requirements, and societal shifts. If the bank follows through on its ambitious plan, TD could well set a benchmark for the entire Canadian banking industry in terms of operational efficiency, technological agility, and responsible stewardship.