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TD Bank Group Reports First Quarter 2020 Results

Published

5 years ago

February 27, 2020

TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ended January 31, 2020. First quarter reported earnings were $3 billion, up 24% on a reported basis and 4% on an adjusted basis, compared with the same quarter last year.

“TD started the year with a solid quarter, reflecting volume growth on both sides of the border in our Retail businesses and strong revenues and earnings in our Wholesale business,” said Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group. “Our strong performance demonstrates the advantages of our strategy and proven business model, as we continued to acquire new customers and engage with them in more innovative and personalized ways.”

The Bank also announced a dividend increase of five cents per common share for the quarter ending in April, an increase of 7%.

Canadian Retail
Canadian Retail reported net income was $1,789 million, up 30% from the first quarter last year, primarily reflecting charges related to the Air Canada agreement in the first quarter of 2019. Adjusted net income was $1,813 million, a decrease of 2% compared with the same quarter last year. Revenue growth of 4%, reflecting volume-based increases in net interest and other income across the businesses, was more than offset by higher non-interest expenses, provisions for credit losses, and insurance claims.

Canadian Retail continued to invest in its business and capabilities, further strengthening its position as Canada’s leading credit card issuer with the introduction of a new line of business cards that give business customers added flexibility and choice. In addition, TD Direct Investing was ranked highest among the banks in The Globe and Mail’s annual review of online brokers, reflecting continued investments in its WebBroker and mobile platforms and resources to help customers achieve their financial goals.

U.S. Retail
U.S. Retail net income was $1,146 million (US$869 million), a decrease of 8% (7% in U.S. dollars), compared with the same quarter last year. TD Ameritrade contributed $201 million (US$152 million) in earnings to the segment, a decrease of 35% (35% in U.S. dollars) compared to the same quarter last year, primarily due to reduced trading commissions.

The U.S. Retail Bank, which excludes the Bank’s investment in TD Ameritrade, contributed $945 million (US$717 million), up 2% (2% in U.S. dollars) from the same quarter last year. Revenue was down 2% as loan and deposit volume growth was offset by reduced margins given the lower interest rate environment. Provision for income taxes benefitted from changes in estimates. The U.S. Retail Bank continued to invest in its digital capabilities and this quarter, increased its number of mobile active customers by 12%. TD Bank, America’s Most Convenient Bank^®, also recorded a milestone achievement in the quarter, ranking “highest in customer satisfaction”, among the national banks, according to the J.D. Power 2019 U.S. National Banking Satisfaction Study¹ that evaluated banks from across the country.

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¹ Advertisement	TD Bank received the highest score in the J.D. Power 2019 U.S. National Banking Satisfaction Study of customers’ satisfaction with bank products and services among national banks. Visit jdpower.com/awards.

Wholesale
Wholesale Banking reported net income of $281 million this quarter, an increase of $298 million, compared to the same quarter last year. Revenue for the quarter was $1,046 million, an increase of $464 million, compared with the first quarter last year, reflecting higher trading-related revenue and underwriting fees compared with the first quarter last year when the business experienced challenging market conditions. The Wholesale Bank continued to grow its banking and corporate lending relationships and gain market share, reflecting the investments made in its U.S. dollar strategy.

Capital
TD’s Common Equity Tier 1 Capital ratio on a Basel lll fully phased-in basis was 11.7%.

Innovation
“We continued to enhance our digital capabilities to provide customers with personalized and connected experiences and the ability to manage their finances across all of our channels,” continued Masrani. “Since launching our artificial intelligence-powered chatbot TD Clari last year, we have seen more than 90% of mobile chat interactions handled instantly. These and other investments are extending our competitive advantage and deepening our customer relationships across the Bank.”

Conclusion
“We are building for the future and are making strategic investments to extend our market differentiation and create lasting, trusted customer relationships across our businesses,” added Masrani. “While macroeconomic conditions may fluctuate, our strategy is clear, and our more than 85,000 colleagues are focused with passion and commitment on the work ahead.”

The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements”.

Caution Regarding Forward-Looking Statements

From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management’s Discussion and Analysis (“2019 MD&A”) in the Bank’s 2019 Annual Report under the heading “Economic Summary and Outlook”, for the Canadian Retail, U.S. Retail, and Wholesale Banking segments under headings “Business Outlook and Focus for 2020”, and for the Corporate segment, “Focus for 2020”, and in other statements regarding the Bank’s objectives and priorities for 2020 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank’s anticipated financial performance. Forward-looking statements are typically identified by words such as “will”, “would”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan”, “goal”, “target”, “may”, and “could”.

By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause, individually or in the aggregate, such differences include: credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), liquidity, operational (including technology, cyber security, and infrastructure), model, reputational, insurance, strategic, regulatory, legal, conduct, environmental, capital adequacy, and other risks. Examples of such risk factors include the general business and economic conditions in the regions in which the Bank operates; geopolitical risk; the ability of the Bank to execute on long-term strategies and shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions, business retention plans, and strategic plans; the ability of the Bank to attract, develop, and retain key executives; disruptions in or attacks (including cyber-attacks or data security breaches) on the Bank’s information technology, internet, network access or other voice or data communications systems or services; fraud or other criminal activity to which the Bank is exposed; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information; the impact of new and changes to, or application of, current laws and regulations, including without limitation tax laws, capital guidelines and liquidity regulatory guidance and the bank recapitalization “bail-in” regime; exposure related to significant litigation and regulatory matters; increased competition from incumbents and non-traditional competitors, including Fintech and big technology competitors; changes to the Bank’s credit ratings; changes in currency and interest rates (including the possibility of negative interest rates); increased funding costs and market volatility due to market illiquidity and competition for funding; Interbank Offered Rate (IBOR) transition risk; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; existing and potential international debt crises; environmental and social risk; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more detailed information, please refer to the “Risk Factors and Management” section of the 2019 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions discussed under the headings “Significant and Subsequent Events, and Pending Transactions” and “Significant Events and Pending Transactions” in the relevant MD&A, which applicable releases may be found on www.td.com. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Bank and the Bank cautions readers not to place undue reliance on the Bank’s forward-looking statements.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2019 MD&A under the headings “Economic Summary and Outlook”, for the Canadian Retail, U.S. Retail, and Wholesale Banking segments, “Business Outlook and Focus for 2020”, and for the Corporate segment, “Focus for 2020”, each as may be updated in subsequently filed quarterly reports to shareholders.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s shareholders and analysts in understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.

This document was reviewed by the Bank‘s Audit Committee and was approved by the Bank‘s Board of Directors, on the Audit Committee‘s recommendation, prior to its release.


TABLE 1: FINANCIAL HIGHLIGHTS
(millions of Canadian dollars, except as noted)	As at or for the three months ended
		January 31			October 31			January 31
		2020			2019			2019
Results of operations Advertisement
Total revenue – reported	$	10,609		$	10,340		$	9,998
Total revenue – adjusted		10,609			10,340 Advertisement			9,998
Provision for credit losses		919			891			850
Insurance claims and related expenses		780			705			702
Non-interest expenses – reported Advertisement		5,467			5,543			5,855
Non-interest expenses – adjusted¹		5,397			5,463			5,161
Net income – reported		2,989			2,856 Advertisement			2,410
Net income – adjusted¹		3,072			2,946			2,953
Financial position (billions of Canadian dollars)
Total loans net of allowance for loan losses	$	693.2		$ Advertisement	684.6		$	648.5
Total assets		1,457.4			1,415.3			1,322.5
Total deposits		908.4			887.0 Advertisement			849.3
Total equity		88.8			87.7			81.7
Total risk-weighted assets		476.0			456.0			439.3
Financial ratios Advertisement
Return on common equity (ROE) – reported		14.2	%		13.6	%		12.2	%
Return on common equity – adjusted²		14.6			14.0 Advertisement			15.0
Return on tangible common equity (ROTCE)²		19.6			18.9			17.5
Return on tangible common equity – adjusted²		19.7			19.1			21.0
Efficiency ratio – reported Advertisement		51.5			53.6			58.6
Efficiency ratio – adjusted¹		50.9			52.8			51.6
Provision for credit losses as a % of net average loans
and acceptances³		0.52 Advertisement			0.51			0.50
Common share information – reported (Canadian dollars)
Per share earnings
Basic	$	1.61		$	1.54		$ Advertisement	1.27
Diluted		1.61			1.54			1.27
Dividends per share		0.74			0.74			0.67
Book value per share Advertisement		45.91			45.20			41.69
Closing share price⁴		73.14			75.21			74.00
Shares outstanding (millions)
Average basic		1,810.9 Advertisement			1,811.7			1,833.1
Average diluted		1,813.6			1,814.5			1,836.2
End of period		1,808.2			1,811.9			1,830.8 Advertisement
Market capitalization (billions of Canadian dollars)	$	132.3		$	136.3		$	135.5
Dividend yield⁵		4.0	% Advertisement		4.0	%		3.8	%
Dividend payout ratio		45.8			48.0			52.6
Price-earnings ratio		11.1 Advertisement			12.0			12.3
Total shareholder return (1 year)⁶		2.8			7.1			2.6
Common share information – adjusted (Canadian dollars)¹
Per share earnings
Basic	$ Advertisement	1.66		$	1.59		$	1.57
Diluted		1.66			1.59			1.57
Dividend payout ratio Advertisement		44.6	%		46.5	%		42.7	%
Price-earnings ratio		10.8			11.2			11.4 Advertisement
Capital ratios
Common Equity Tier 1 Capital ratio		11.7	%		12.1	%		12.0	%
Tier 1 Capital ratio		13.1 Advertisement			13.5			13.5
Total Capital ratio		15.7			16.3			15.9
Leverage ratio		4.0			4.0			4.1 Advertisement

¹	Adjusted measures are non-GAAP measures. Refer to the “How the Bank Reports” section of this document for an explanation of reported and adjusted results.
²	Metrics are non-GAAP financial measures. Refer to the “Return on Common Equity” and “Return on Tangible Common Equity” sections of this document for an explanation.
³	Excludes acquired credit-impaired (ACI) loans.
⁴	Toronto Stock Exchange (TSX) closing market price.
⁵	Dividend yield is calculated as the annualized dividend per common share paid divided by daily average closing stock price in the relevant period. Dividend per common share is derived as follows: a) for the quarter – by annualizing the dividend per common share paid during the quarter; and b) for the year-to-date – by annualizing the year-to-date dividend per common share paid. Advertisement
⁶	Total shareholder return (TSR) is calculated based on share price movement and dividends reinvested over a trailing one-year period.

HOW WE PERFORMED

How the Bank Reports
The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in accordance with IFRS as “reported” results. The Bank also utilizes non-GAAP financial measures referred to as “adjusted” results to assess each of its businesses and to measure the Bank’s overall performance. To arrive at adjusted results, the Bank removes “items of note” from reported results. The items of note relate to items which management does not believe are indicative of underlying business performance. The Bank believes that adjusted results provide the reader with a better understanding of how management views the Bank’s performance. The items of note are disclosed in Table 3. As explained, adjusted results differ from reported results determined in accordance with IFRS. Adjusted results, items of note, and related terms used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

The Bank’s U.S. strategic cards portfolio comprises agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and provisions for credit losses related to these portfolios in the Bank’s Interim Consolidated Statement of Income. At the segment level, the retailer program partners’ share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners’ net share) recorded in Non-interest expenses, resulting in no impact to Corporate reported Net income (loss). The Net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements.

The following table provides the operating results on a reported basis for the Bank.


TABLE 2: OPERATING RESULTS – Reported
(millions of Canadian dollars)	For the three months ended
	January 31 Advertisement		October 31		January 31
	2020		2019		2019
Net interest income	$	6,301	$	6,175 Advertisement	$	5,860
Non-interest income		4,308		4,165		4,138
Total revenue		10,609		10,340		9,998 Advertisement
Provision for credit losses		919		891		850
Insurance claims and related expenses		780		705		702
Non-interest expenses		5,467 Advertisement		5,543		5,855
Income before income taxes and equity in net income of an
investment in TD Ameritrade		3,443		3,201		2,591
Provision for income taxes		659		646 Advertisement		503
Equity in net income of an investment in TD Ameritrade		205		301		322
Net income – reported		2,989		2,856		2,410
Preferred dividends Advertisement		67		68		60
Net income available to common shareholders and non-controlling
interests in subsidiaries	$	2,922	$	2,788	$ Advertisement	2,350
Attributable to:
Common shareholders	$	2,922	$	2,788	$	2,332
Non-controlling interests Advertisement		–		–		18

The following table provides a reconciliation between the Bank’s adjusted and reported results.


TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income
(millions of Canadian dollars)	For the three months ended
	January 31		October 31		January 31 Advertisement
	2020		2019		2019
Operating results – adjusted
Net interest income	$	6,301	$	6,175	$ Advertisement	5,860
Non-interest income		4,308		4,165		4,138
Total revenue		10,609		10,340		9,998
Provision for credit losses Advertisement		919		891		850
Insurance claims and related expenses		780		705		702
Non-interest expenses¹		5,397		5,463 Advertisement		5,161
Income before income taxes and equity in net income of an
investment in TD Ameritrade		3,513		3,281		3,285
Provision for income taxes		670		660		678 Advertisement
Equity in net income of an investment in TD Ameritrade²		229		325		346
Net income – adjusted		3,072		2,946		2,953
Preferred dividends		67 Advertisement		68		60
Net income available to common shareholders and non-controlling
interests in subsidiaries – adjusted		3,005		2,878		2,893
Attributable to:
Non-controlling interests in subsidiaries, net of income taxes		– Advertisement		–		18
Net income available to common shareholders – adjusted		3,005		2,878		2,875
Pre-tax adjustments for items of note
Amortization of intangibles³		(70)		(74) Advertisement		(80)
Charges related to the long-term loyalty agreement with Air Canada⁴		–		–		(607)
Charges associated with the acquisition of Greystone⁵		(24)		(30)		(31)
Less: Impact of income taxes Advertisement
Amortization of intangibles		(11)		(12)		(13)
Charges related to the long-term loyalty agreement with Air Canada		–		–		(161)
Charges associated with the acquisition of Greystone		– Advertisement		(2)		(1)
Total adjustments for items of note		(83)		(90)		(543)
Net income available to common shareholders – reported	$	2,922	$ Advertisement	2,788	$	2,332

¹	Adjusted Non-interest expenses exclude the following items of note: Amortization of intangibles, as explained in footnote 3 – first quarter 2020 – $46 million, fourth quarter 2019 – $50 million, first quarter 2019 – $56 million, these amounts were reported in the Corporate segment. Charges related to the long-term loyalty agreement with Air Canada, as explained in footnote 4 – first quarter 2019 – $607 million; this amount was reported in the Canadian Retail segment. Charges associated with the acquisition of Greystone, as explained in footnote 5 – first quarter 2020 – $24 million, fourth quarter 2019 – $30 million, first quarter 2019 – $31 million; this amount was reported in the Canadian Retail segment.
²	Adjusted Equity in net income of an investment in TD Ameritrade excludes the following items of note: Amortization of intangibles, as explained in footnote 3 – first quarter 2020 – $24 million, fourth quarter 2019 – $24 million, first quarter 2019 – $24 million. The earnings impact of this item was reported in the Corporate segment.
³	Amortization of intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of intangibles relating to the Equity in net income of the investment in TD Ameritrade. Although the amortization of software and asset servicing rights are recorded in amortization of intangibles, they are not included for purposes of the items of note.
⁴ Advertisement	On January 10, 2019, the Bank’s long-term loyalty program agreement with Air Canada became effective in conjunction with Air Canada completing its acquisition of Aimia Canada Inc., which operates the Aeroplan loyalty business (the “Transaction”). In connection with the Transaction, the Bank recognized an expense of $607 million ($446 million after-tax) in the Canadian Retail segment.
⁵	On November 1, 2018, the Bank acquired Greystone Capital Management Inc., the parent company of Greystone Managed Investments Inc. (“Greystone”). The Bank incurred acquisition related charges including compensation to employee shareholders issued in common shares in respect of the purchase price, direct transaction costs, and certain other acquisition related costs. These amounts have been recorded as an adjustment to net income and were reported in the Canadian Retail segment.


TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE (EPS)¹
(Canadian dollars)			For the three months ended
	January 31		October 31		January 31
	2020 Advertisement		2019		2019
Basic earnings per share – reported	$	1.61	$	1.54	$	1.27
Adjustments for items of note² Advertisement		0.05		0.05		0.30
Basic earnings per share – adjusted	$	1.66	$	1.59	$	1.57 Advertisement

Diluted earnings per share – reported	$	1.61	$	1.54	$	1.27
Adjustments for items of note²		0.05		0.05 Advertisement		0.30
Diluted earnings per share – adjusted	$	1.66	$	1.59	$	1.57


¹	EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the period. Advertisement
²	For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document.

Return on Common Equity
The Bank’s methodology for allocating capital to its business segments is aligned with the common equity capital requirements under Basel III. Capital allocated to the business segments is based on 10.5% Common Equity Tier 1 (CET1) Capital in fiscal 2020 and 10% in fiscal 2019.
Adjusted ROE is adjusted net income available to common shareholders as a percentage of average common equity.
Adjusted ROE is a non-GAAP financial measure as it is not a defined term under IFRS. Readers are cautioned that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other issuers.


TABLE 5: RETURN ON COMMON EQUITY
(millions of Canadian dollars, except as noted)			For the three months ended
	January 31			October 31			January 31
	2020 Advertisement			2019			2019
Average common equity	$	81,933		$	81,286		$	75,873
Net income available to common shareholders – reported Advertisement		2,922			2,788			2,332
Items of note, net of income taxes¹		83			90			543
Net income available to common shareholders – adjusted		3,005			2,878 Advertisement			2,875
Return on common equity – reported		14.2	%		13.6	%		12.2	%
Return on common equity – adjusted		14.6 Advertisement			14.0			15.0


¹	For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document.

Return on Tangible Common Equity
Tangible common equity (TCE) is calculated as common shareholders’ equity less goodwill, imputed goodwill and intangibles on an investment in TD Ameritrade and other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after adjusting for the after‑tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is calculated using reported net income available to common shareholders, adjusted for items of note, as a percentage of average TCE. Adjusted ROTCE provides a useful measure of the performance of the Bank’s income producing assets, independent of whether or not they were acquired or developed internally. TCE, ROTCE, and adjusted ROTCE are each non-GAAP financial measures and are not defined terms under IFRS. Readers are cautioned that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other issuers.


TABLE 6: RETURN ON TANGIBLE COMMON EQUITY
(millions of Canadian dollars, except as noted)			For the three months ended
	January 31			October 31 Advertisement			January 31
	2020			2019			2019
Average common equity	$	81,933		$	81,286		$ Advertisement	75,873
Average goodwill		16,971			17,046			17,021
Average imputed goodwill and intangibles on an
investment in TD Ameritrade		4,089			4,119			4,170 Advertisement
Average other acquired intangibles¹		564			613			676
Average related deferred tax liabilities		(261)			(267)			(238)
Average tangible common equity		60,570 Advertisement			59,775			54,244
Net income available to common shareholders – reported		2,922			2,788			2,332
Amortization of acquired intangibles, net of income taxes²		59			62			67 Advertisement
Net income available to common shareholders after
adjusting for after-tax amortization of acquired intangibles		2,981			2,850			2,399
Other items of note, net of income taxes²		24			28			476
Net income available to common shareholders – adjusted Advertisement	$	3,005		$	2,878		$	2,875
Return on tangible common equity		19.6	%		18.9 Advertisement	%		17.5	%
Return on tangible common equity – adjusted		19.7			19.1			21.0


¹	Excludes intangibles relating to software and asset servicing rights.
² Advertisement	For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document.

SIGNIFICANT EVENTS AND PENDING TRANSACTIONS

TD Ameritrade Holding Corporation and The Charles Schwab Corporation
On November 25, 2019, the Bank announced its support for the acquisition of TD Ameritrade, of which the Bank is a major shareholder, by The Charles Schwab Corporation, through a definitive agreement announced by those companies. The transaction is expected to close in the second half of calendar 2020, subject to all applicable closing conditions having been satisfied. Refer to the “Financial Results Overview – Significant and Subsequent Events, and Pending Transactions” section of the Bank’s 2019 MD&A for a discussion of the announced transaction.

HOW OUR BUSINESSES PERFORMED

For management reporting purposes, the Bank reports its results under three key business segments: Canadian Retail, which includes the results of the Canadian personal and commercial banking, wealth, and insurance businesses; U.S. Retail, which includes the results of the U.S. personal and business banking operations, wealth management services, and the Bank’s investment in TD Ameritrade; and Wholesale Banking. The Bank’s other activities are grouped into the Corporate segment.

Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments the Bank indicates that the measure is adjusted. For further details, refer to the “How the Bank Reports” section of this document, the “Business Focus” section in the Bank’s 2019 MD&A, and Note 29 Segmented Information of the Bank’s Consolidated Financial Statements for the year ended October 31, 2019. For information concerning the Bank’s measure of ROE, which is a non-GAAP financial measure, refer to the “How We Performed” section of this document.

PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the respective segment.

Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt income, including certain dividends, is adjusted to its equivalent before-tax value. Using TEB allows the Bank to measure income from all securities and loans consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for income taxes reflected in Wholesale Banking’s results are reversed in the Corporate segment. The TEB adjustment for the quarter was $38 million, compared with $21 million in the first quarter last year and $36 million in the prior quarter.


TABLE 7: CANADIAN RETAIL
(millions of Canadian dollars, except as noted) Advertisement	For the three months ended
	January 31			October 31			January 31
	2020			2019			2019
Net interest income	$	3,167 Advertisement		$	3,173		$	3,044
Non-interest income		3,088			2,960			2,944
Total revenue		6,255 Advertisement			6,133			5,988
Provision for credit losses – impaired		320			324			264
Provision for credit losses – performing		71			76			46 Advertisement
Total provision for credit losses		391			400			310
Insurance claims and related expenses		780			705			702
Non-interest expenses – reported		2,636 Advertisement			2,637			3,084
Non-interest expenses – adjusted¹		2,612			2,607			2,446
Provision for (recovery of) income taxes – reported		659			646			513 Advertisement
Provision for (recovery of) income taxes – adjusted¹		659			648			675
Net income – reported		1,789			1,745			1,379
Net income – adjusted¹	$ Advertisement	1,813		$	1,773		$	1,855

Selected volumes and ratios
Return on common equity – reported²		37.1	%		37.9 Advertisement	%		31.6	%
Return on common equity – adjusted^1,2		37.6			38.5			42.5
Net interest margin (including on securitized assets)		2.94			2.96 Advertisement			2.94
Efficiency ratio – reported		42.1			43.0			51.5
Efficiency ratio – adjusted		41.8			42.5			40.8
Assets under administration (billions of Canadian dollars) Advertisement	$	439		$	422		$	396
Assets under management (billions of Canadian dollars)		365			353			332 Advertisement
Number of Canadian retail branches		1,088			1,091			1,099
Average number of full-time equivalent staff		41,394			41,650			39,997


¹	Adjusted non-interest expenses excludes the following items of note: Charges related to the long-term loyalty agreement with Air Canada in the first quarter 2019 – $607 million ($446 million after-tax); and charges associated with the acquisition of Greystone in the first quarter 2020 – $24 million ($24 million after-tax), fourth quarter 2019 – $30 million ($28 million after-tax), first quarter 2019 – $31 million ($30 million after-tax). For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document. Advertisement
²	Capital allocated to the business segment was increased to 10.5% CET1 effective fiscal 2020 compared to 10% in fiscal 2019.

Quarterly comparison – Q1 2020 vs. Q1 2019
Canadian Retail reported net income for the quarter was $1,789 million, an increase of $410 million, or 30%, compared with the first quarter last year, primarily due to charges related to the agreement with Air Canada in the prior year. On an adjusted basis, net income for the quarter was $1,813 million, a decrease of $42 million, or 2%, reflecting higher adjusted non-interest expenses, PCL, and insurance claims, partially offset by revenue growth. The reported and adjusted annualized ROE for the quarter was 37.1% and 37.6%, respectively, compared with 31.6% and 42.5%, respectively, in the first quarter last year.

Canadian Retail revenue is derived from Canadian personal and commercial banking, wealth, and insurance businesses. Revenue for the quarter was $6,255 million, an increase of $267 million, or 4%, compared with the first quarter last year.

Net interest income was $3,167 million, an increase of $123 million, or 4%, reflecting volume growth. Average loan volumes increased $19 billion, or 4%, reflecting 4% growth in personal loans and 8% growth in business loans. Average deposit volumes increased $24 billion, or 7%, reflecting 7% growth in both personal and business deposits, and an 8% increase in wealth deposits. Net interest margin was 2.94%, consistent with the first quarter last year, reflecting competitive pricing and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16, Leases (IFRS 16), offset by favourable balance sheet mix from growth in deposits.

Non-interest income was $3,088 million, an increase of $144 million, or 5%, reflecting higher revenues from the insurance business and higher fee-based revenue in the wealth business.

Assets under administration (AUA) were $439 billion as at January 31, 2020, an increase of $43 billion, or 11%, compared with the first quarter last year, reflecting increases in market value and new asset growth. Assets under management (AUM) were $365 billion as at January 31, 2020, an increase of $33 billion, or 10%, compared with the first quarter last year, reflecting increases in market value.

PCL was $391 million, an increase of $81 million, or 26%, compared with the first quarter last year. PCL – impaired for the quarter was $320 million, an increase of $56 million, or 21%, reflecting lower prior year provisions in commercial, higher insolvencies in consumer lending, and volume growth. PCL – performing was $71 million, an increase of $25 million, reflecting credit migration in the commercial and auto portfolios. Total PCL as an annualized percentage of credit volume was 0.36%, or an increase of 7 basis points (bps).

Insurance claims and related expenses for the quarter were $780 million, an increase of $78 million, or 11%, compared with the first quarter last year reflecting higher current year claims primarily from business growth.

Reported non-interest expenses for the quarter were $2,636 million, a decrease of $448 million, or 15%, compared with the first quarter last year, primarily due to prior year charges related to the agreement with Air Canada. On an adjusted basis, non-interest expenses were $2,612 million, an increase of $166 million, or 7%, reflecting higher spend supporting business growth, volume-driven expenses, and changes in pension costs, partially offset by a reduction in operating expense due to the adoption of IFRS 16.

The reported and adjusted efficiency ratio for the quarter was 42.1% and 41.8%, respectively, compared with 51.5% and 40.8%, respectively, in the first quarter last year.

Quarterly comparison – Q1 2020 vs. Q4 2019
Canadian Retail reported net income for the quarter increased $44 million, or 3%, compared with the prior quarter, reflecting revenue growth, partially offset by higher insurance claims. On an adjusted basis, net income increased $40 million, or 2%. The reported and adjusted annualized ROE for the quarter was 37.1% and 37.6%, respectively, compared with 37.9% and 38.5%, respectively, in the prior quarter.

Revenue increased $122 million, or 2%, compared with the prior quarter. Net interest income decreased $6 million, relatively flat compared with the prior quarter. Average loan volumes increased $4 billion, or 1%, reflecting 1% growth in both personal and business loans. Average deposit volumes increased $10 billion, or 3%, reflecting 2% growth in personal deposits, 4% in business deposits, and 5% in wealth deposits. Net interest margin was 2.94%, a decrease of 2 bps, reflecting seasonality and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16.

Non-interest income increased $128 million, or 4%, reflecting higher revenues from the insurance business and higher fee-based revenue in the banking and wealth businesses. The increase in non-interest income also includes $54 million related to higher fair value of investments supporting claims liabilities, which resulted in a similar increase to insurance claims.

AUA increased $17 billion, or 4%, compared with the prior quarter, reflecting increases in market value and new asset growth. AUM increased $12 billion, or 3%, reflecting increases in market value.

PCL decreased $9 million, or 2%, compared with the prior quarter. PCL – impaired decreased by $4 million. PCL – performing decreased $5 million. Total PCL as an annualized percentage of credit volume was 0.36%, or a decrease of 1 basis point.

Insurance claims and related expenses for the quarter increased $75 million, or 11%, compared with the prior quarter. The increase reflects less favourable prior years’ claims development and changes in the fair value of investments supporting claims liabilities, partially offset by lower current year claims and less severe weather-related events.

Reported non-interest expenses decreased $1 million, relatively flat, compared with the prior quarter. On an adjusted basis, non-interest expenses increased $5 million.

The reported and adjusted efficiency ratio for the quarter was 42.1% and 41.8%, respectively, compared with 43.0% and 42.5%, respectively, in the prior quarter.


TABLE 8: U.S. RETAIL Advertisement
(millions of dollars, except as noted)	For the three months ended
	January 31			October 31			January 31
Canadian Dollars		2020			2019			2019
Net interest income Advertisement	$	2,196		$	2,232		$	2,247
Non-interest income		706			717			701 Advertisement
Total revenue		2,902			2,949			2,948
Provision for credit losses – impaired		273			268			285
Provision for credit losses – performing		46 Advertisement			27			21
Total provision for credit losses		319			295			306
Non-interest expenses		1,593			1,669			1,611 Advertisement
Provision for (recovery of) income taxes		45			85			102
U.S. Retail Bank net income		945			900			929
Equity in net income of an investment in TD Ameritrade¹		201 Advertisement			291			311
Net income	$	1,146		$	1,191		$	1,240

U.S. Dollars Advertisement
Net interest income	$	1,668		$	1,687		$	1,688
Non-interest income		536			543 Advertisement			528
Total revenue – reported		2,204			2,230			2,216
Provision for credit losses – impaired		208			203			214
Provision for credit losses – performing Advertisement		35			20			16
Total provision for credit losses		243			223			230
Non-interest expenses		1,210			1,261 Advertisement			1,209
Provision for (recovery of) income taxes		34			65			77
U.S. Retail Bank net income		717			681			700
Equity in net income of an investment in TD Ameritrade¹ Advertisement		152			219			235
Net income	$	869		$	900		$	935 Advertisement

Selected volumes and ratios
Return on common equity²		11.1	%		11.8	%		12.6	%
Net interest margin³		3.07 Advertisement			3.18			3.42
Efficiency ratio		54.9			56.5			54.6
Assets under administration (billions of U.S. dollars)	$	22		$ Advertisement	21		$	19
Assets under management (billions of U.S. dollars)		44			44			46
Number of U.S. retail stores		1,220			1,241 Advertisement			1,240
Average number of full-time equivalent staff		26,261			26,513			26,864


¹	The after-tax amounts for amortization of intangibles relating to the Equity in net income of the investment in TD Ameritrade is recorded in the Corporate segment with other acquired intangibles.
²	Capital allocated to the business segment was increased to 10.5% CET1 effective fiscal 2020 compared to 10% in fiscal 2019.
³ Advertisement	Net interest margin excludes the impact related to the TD Ameritrade insured deposit accounts (IDA) and the impact of intercompany deposits and cash collateral. In addition, the value of tax-exempt interest income is adjusted to its equivalent before-tax value.

Quarterly comparison – Q1 2020 vs. Q1 2019
U.S. Retail net income for the quarter was $1,146 million (US$869 million), a decrease of $94 million (US$66 million), or 8% (7% in U.S. dollars), compared with the first quarter last year. The annualized ROE for the quarter was 11.1%, compared with 12.6% in the first quarter last year.

U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank’s investment in TD Ameritrade. Net income for the quarter from the U.S. Retail Bank and the Bank’s investment in TD Ameritrade were $945 million (US$717 million) and $201 million (US$152 million), respectively.

The contribution from TD Ameritrade was US$152 million, a decrease of US$83 million, or 35%, compared with the first quarter last year, primarily reflecting the reduced trading commissions and higher operating expenses, partially offset by higher trading volumes.

U.S. Retail Bank net income of US$717 million for the quarter increased US$17 million, or 2%, compared with the first quarter last year, reflecting loan and deposit growth and a lower provision for income taxes, partially offset by lower deposit margins and higher PCL.

U.S. Retail Bank revenue is derived from personal and business banking, and wealth management. Revenue for the quarter was US$2,204 million, a decrease of US$12 million, or 1%, compared with the first quarter last year. Net interest income decreased US$20 million, or 1%, as lower deposit margins and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16 in the quarter were partially offset by growth in loan and deposit volumes. Net interest margin was 3.07%, a decrease of 35 bps, reflecting lower deposit margins, balance sheet mix, and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16. Non-interest income increased US$8 million, or 2%, reflecting higher personal and commercial banking volumes.

Average loan volumes increased US$8 billion, or 5%, compared with the first quarter last year reflecting growth in business and personal loans of 2% and 8%, respectively. Average deposit volumes increased US$13 billion, or 5%, reflecting 10% growth in business deposit volumes, 5% growth in personal deposit volumes, and 2% increase in sweep deposit volume from TD Ameritrade.

AUA were US$22 billion as at January 31, 2020, an increase of US$3 billion, or 16%, compared with the first quarter last year. AUM were US$44 billion as at January 31, 2020, a decrease of US$2 billion, or 4%, compared with the first quarter last year.

PCL for the quarter was US$243 million, an increase of US$13 million, or 6%, compared with the first quarter last year. PCL – impaired was US$208 million, a decrease of US$6 million, or 3%. PCL – performing was US$35 million, an increase of US$19 million, primarily reflecting higher provisions in the commercial portfolio. U.S. Retail PCL including only the Bank’s contractual portion of credit losses in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.59%, flat, compared with the first quarter last year.

Non-interest expenses for the quarter were US$1,210 million, an increase of US$1 million, compared with the first quarter last year, primarily reflecting higher employee-related and volume-driven expenses, partially offset by productivity savings and a reduction in operating expense reflecting the adoption of IFRS 16.

Provision for income taxes for the quarter was US$34 million, a decrease of US$43 million, or 56%, compared with the first quarter last year, primarily reflecting changes to the estimated liability for uncertain tax positions.

The efficiency ratio for the quarter was 54.9%, compared with 54.6% in the first quarter last year.

Quarterly comparison – Q1 2020 vs. Q4 2019
U.S. Retail net income of $1,146 million (US$869 million) decreased $45 million (US$31 million), or 4% (3% in U.S. dollars), compared with the prior quarter. The annualized ROE for the quarter was 11.1%, compared with 11.8% in the prior quarter.

The contribution from TD Ameritrade was US$152 million, a decrease of US$67 million, or 31%, compared with the prior quarter, primarily reflecting the reduced trading commissions, partially offset by higher trading volumes and lower operating expenses.

U.S. Retail Bank net income for the quarter was US$717 million, an increase of US$36 million or 5%, compared with prior quarter, reflecting lower expenses and a lower provision for income taxes, partially offset by lower revenue and higher PCL.

Revenue for the quarter decreased US$26 million, or 1%, compared with the prior quarter. Net interest income decreased US$19 million, or 1%, reflecting lower deposit margins and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16, partially offset by growth in loan and deposit volumes. Net interest margin was 3.07%, a decrease of 11 bps, primarily reflecting lower deposit margins and the impact of interest expense relating to lease liabilities recorded upon adoption of IFRS 16. Non-interest income decreased US$7 million, or 1%, compared with the prior quarter.

Average loan volumes increased US$1 billion, or 1%, compared with prior quarter, reflecting growth in personal loans of 3% and decline in business loans of 1%. Average deposit volumes increased US$8 billion, or 3%, reflecting 2% growth in both personal and business deposit volumes, respectively, and a 5% increase in sweep deposit volume from TD Ameritrade.

AUA were US$22 billion as at January 31, 2020, an increase of US$1 billion, or 4%, compared to prior quarter. AUM were US$44 billion as at January 31, 2020, relatively flat to prior quarter.

PCL for the quarter increased US$20 million, or 9%, compared with the prior quarter. PCL – impaired increased US$5 million, or 2%. PCL – performing increased US$15 million, or 75%, primarily reflecting higher provisions in the commercial portfolio. U.S. Retail PCL including only the Bank’s contractual portion of credit losses in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.59%, or an increase of 4 bps.

Non-interest expenses for the quarter were US$1,210 million, a decrease of US$51 million, or 4% compared with the prior quarter, primarily reflecting prior quarter restructuring charges and a reduction in operating expense reflecting the adoption of IFRS 16, partially offset by a prior quarter adjustment in post-retirement benefit costs.

Provision for income taxes for the quarter was US$34 million, a decrease of US$31 million, or 48%, compared with the prior quarter, primarily reflecting changes to the estimated liability for uncertain tax positions.

The efficiency ratio for the quarter was 54.9%, compared with 56.5% in the prior quarter.


TABLE 9: WHOLESALE BANKING
(millions of Canadian dollars, except as noted)		For the three months ended
	January 31			October 31			January 31
	2020			2019 Advertisement			2019
Net interest income (TEB)	$	357		$	278		$	173
Non-interest income		689 Advertisement			570			409
Total revenue		1,046			848			582
Provision for (recovery of) credit losses – impaired		52			8			– Advertisement
Provision for (recovery of) credit losses – performing		(35)			33			7
Total provision for (recovery of) credit losses		17			41			7
Non-interest expenses		652 Advertisement			600			602
Provision for (recovery of) income taxes (TEB)		96			47			(10)
Net income (loss)	$	281		$ Advertisement	160		$	(17)

Selected volumes and ratios
Trading-related revenue (TEB)	$	612		$	411		$ Advertisement	251
Average gross lending portfolio (billions of Canadian dollars)¹		55.1			52.5			48.9
Return on common equity²		14.0	%		8.5	% Advertisement		(0.9)	%
Efficiency ratio		62.3			70.8			103.4
Average number of full-time equivalent staff		4,517			4,570			4,478 Advertisement


¹	Includes gross loans and bankers’ acceptances relating to Wholesale Banking, excluding letters of credit, cash collateral, credit default swaps (CDS), and allowance for credit losses.
²	Capital allocated to the business segment was increased to 10.5% CET1 effective fiscal 2020 compared to 10% in fiscal 2019.

Quarterly comparison – Q1 2020 vs. Q1 2019
Wholesale Banking net income for the quarter was $281 million, an increase in net income of $298 million, compared with net loss of $17 million in the first quarter last year, reflecting higher revenue, partially offset by higher non-interest expenses.

Wholesale Banking revenue is derived primarily from capital markets and corporate and investment banking services provided to corporate, government, and institutional clients. Wholesale Banking generates revenue from corporate lending, advisory, underwriting, sales, trading and research, client securitization, trade finance, cash management, prime services, and trade execution services. Revenue for the quarter was $1,046 million, an increase of $464 million, or 80%, compared with the first quarter last year, reflecting higher trading-related revenue and underwriting fees compared with the first quarter last year when the business experienced challenging market conditions.

PCL for the quarter was $17 million, an increase of $10 million compared with the first quarter last year. PCL – impaired was $52 million reflecting credit migration. PCL – performing decreased $42 million, reflecting migration from performing to impaired.

Non-interest expenses were $652 million, an increase of $50 million, or 8%, compared with the first quarter last year. This increase reflects higher variable compensation, securities lending fees, and underwriting costs.

Quarterly comparison – Q1 2020 vs. Q4 2019
Wholesale Banking net income for the quarter was $281 million, an increase in net income of $121 million, or 76%, compared with net income of $160 million in the prior quarter, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses.

Revenue for the quarter increased $198 million, or 23%, compared with the prior quarter, reflecting higher trading-related revenue, advisory and loan fees, and higher derivative valuation charges in the prior quarter.

PCL for the quarter decreased by $24 million, compared with the prior quarter. PCL – impaired increased by $44 million reflecting credit migration. PCL – performing decreased $68 million, reflecting migration from performing to impaired.

Non-interest expenses for the quarter increased $52 million, or 9%, compared with the prior quarter, reflecting higher securities lending fees, underwriting costs, and variable compensation, partially offset by restructuring charges in the prior quarter.


TABLE 10: CORPORATE
(millions of Canadian dollars)	For the three months ended
	January 31		October 31		January 31
	2020		2019 Advertisement		2019
Net income (loss) – reported	$	(227)	$	(240)	$	(192)
Adjustments for items of note¹
Amortization of intangibles before income taxes Advertisement		70		74		80
Less: impact of income taxes		11		12		13
Net income (loss) – adjusted	$	(168) Advertisement	$	(178)	$	(125)

Decomposition of items included in net income (loss) – adjusted
Net corporate expenses	$	(179)	$	(201) Advertisement	$	(182)
Other		11		23		39
Non-controlling interests		–		–		18 Advertisement
Net income (loss) – adjusted	$	(168)	$	(178)	$	(125)

Selected volumes
Average number of full-time equivalent staff		17,458 Advertisement		17,316		16,229


¹	For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document.

Quarterly comparison – Q1 2020 vs. Q1 2019
Corporate segment’s reported net loss for the quarter was $227 million, compared with a reported net loss of $192 million in the first quarter last year. Reported net loss increased primarily reflecting lower contribution from other items and non-controlling interests. Other items decreased primarily reflecting an unfavourable adjustment relating to hedge accounting, partially offset by higher revenue from other treasury and balance sheet management activities recognized in the first quarter this year. Adjusted net loss was $168 million compared with an adjusted net loss of $125 million in the first quarter last year.

Quarterly comparison – Q1 2020 vs. Q4 2019
Corporate segment’s reported net loss for the quarter was $227 million, compared with a reported net loss of $240 million in the prior quarter. Reported net loss decreased primarily reflecting lower net corporate expenses in the current quarter, partially offset by lower contribution from other items in the current quarter. Other items decreased primarily reflecting an unfavourable adjustment relating to hedge accounting, partially offset by higher revenue from other treasury and balance sheet management activities recognized in the first quarter this year. Net corporate expenses decreased largely due to restructuring charges incurred in the prior quarter. Adjusted net loss was $168 million compared with an adjusted net loss of $178 million in the prior quarter.

SHAREHOLDER AND INVESTOR INFORMATION

Shareholder Services

If you:	And your inquiry relates to: Advertisement	Please contact:
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Hold your TD shares through the Direct Registration System in the United States	Missing dividends, lost share certificates, estate questions, address changes to the share register, eliminating duplicate mailings of shareholder materials or stopping (or resuming) receiving annual and quarterly reports	Co-Transfer Agent and Registrar: Computershare P.O. Box 505000 Louisville, KY 40233, or Computershare 462 South 4^th Street, Suite 1600 Louisville, KY 40202 Advertisement 1-866-233-4836 TDD for hearing impaired: 1-800-231-5469 Shareholders outside of U.S.: 201-680-6578 TDD shareholders outside of U.S.: 201-680-6610 www.computershare.com/investor
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For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.

Normal Course Issuer Bid
On December 19, 2019, the Bank announced that the TSX and OSFI approved the Bank’s Normal Course Issuer Bid (NCIB) to repurchase for cancellation up to 30 million of the Bank’s common shares. Pursuant to the Notice of Intention filed with the TSX, the NCIB ends on December 23, 2020, such earlier date as the Bank may determine or such earlier date as the Bank may complete its purchases. A copy of the Notice may be obtained without charge by contacting TD Shareholder Relations by phone at 416-944-6367 or 1-866-756-8936 or by e-mail at tdshinfo@td.com.

Access to Quarterly Results Materials
Interested investors, the media and others may view the first quarter earnings news release, results slides, supplementary financial information, and the Report to Shareholders on the TD Investor Relations website at www.td.com/investor.

Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on February 27, 2020. The call will be audio webcast live through TD’s website at 2:00 p.m. ET. The call and audio webcast will feature presentations by TD executives on the Bank’s financial results for the first quarter, discussions of related disclosures, and will be followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at www.td.com/investor on February 27, 2020, by approximately 12:00 p.m. ET. A listen-only telephone line is available at 416‑641‑6150 or 1-866-696-5894 (toll free) and the passcode is 2727354.

The audio webcast and presentations will be archived at www.td.com/investor. Replay of the teleconference will be available from 5:00 p.m. ET on February 27, 2020, until 11:59 p.m. ET on March 6, 2020, by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is 3336790.

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Fintech

Fintech Pulse: Your Daily Industry Brief – April 3, 2025 | Plaid, Circle, Finvolution, Fintech Grace

Published

5 hours ago

April 3, 2025

Peter Tolan

The fintech sector continues to transform at an astonishing pace. Today’s briefing delves into the latest developments shaping the industry—from record-setting funding rounds and strategic IPO preparations to regulatory interventions and groundbreaking international dialogues. As the world of digital finance expands, industry players are not just reacting to market dynamics; they are actively shaping the future of financial technology. This op-ed-style analysis provides a comprehensive look at key developments, exploring their implications and offering insights that go beyond the headlines.

In this in-depth analysis, we cover:

Plaid’s Multi-Million Dollar Funding Milestone: An exploration of how one of the leading players in the API space has secured a staggering funding round and what that means for its growth and the broader fintech ecosystem. (Source: CNBC)
Circle’s IPO Preparations: A detailed discussion on Circle’s decision to file its registration statement for a U.S.-based IPO and how this move might signal a new era of public market opportunities for digital finance innovators. (Source: Fintech Futures)
Regulatory Shake-Up in Connecticut: An examination of the recent mandate requiring a fintech company to repay investors after allegations of fraud, highlighting the increasing scrutiny and the need for robust compliance in an industry that is rapidly evolving. (Source: American Banker)
Finvolution’s Globalization Talks: An analysis of Finvolution’s engagement with international bodies such as the United Nations and Pakistani officials, underscoring the global ambition of fintech players and the potential for regulatory harmonization. (Source: PR Newswire)
The Rise of Fintech Grace: Insights into the early-stage investment landscape with a focus on Fintech Grace, a company that is positioning itself as a leader in the next wave of fintech innovation. (Source: WWD)

Throughout this article, I will offer a blend of factual reportage and opinion-driven commentary, providing context to help you understand the trends and forces at work in the fintech industry today. Let’s dive into the details of each story and unpack their significance.

The Expanding Fintech Landscape: An Overview

In an industry characterized by rapid innovation and constant change, the fintech sector has evolved into one of the most dynamic and closely watched arenas in the global financial system. As traditional financial institutions face stiff competition from nimble startups, the sector has become a breeding ground for innovation, disruption, and new forms of collaboration. From digital banking to blockchain-based solutions, fintech is not just transforming financial transactions but also reimagining how we interact with money.

Recent months have witnessed several landmark events that underscore the resilience and ambition of fintech companies. Amid a challenging global economic backdrop, companies are raising record amounts of capital, preparing for public listings, and engaging in dialogues that span borders and regulatory frameworks. This diversity of activity reflects the multifaceted nature of fintech—a field that encompasses everything from payment processing and lending platforms to wealth management and cryptocurrency exchanges.

The significance of these developments extends far beyond the balance sheets of individual companies. They represent a broader shift in how financial services are conceived, delivered, and regulated. As consumers demand more seamless and secure digital experiences, fintech firms are not only filling gaps left by traditional banks but also setting new benchmarks for innovation, transparency, and customer engagement.

Market Trends and Key Drivers

Several key trends are driving the fintech revolution today:

Increased Capital Injections: Record-breaking funding rounds, like Plaid’s recent success, highlight investors’ confidence in fintech. These capital injections are fueling research, development, and expansion into new markets.
Regulatory Scrutiny: With growth comes risk, and regulators are paying closer attention to fintech companies to ensure compliance with financial laws and protect investors. The case in Connecticut serves as a cautionary tale.
IPO Movements: As companies like Circle gear up for public offerings, the traditional lines between private innovation and public accountability are blurring. This shift is bringing new challenges and opportunities.
Global Expansion: Fintech is no longer confined to local or regional markets. Companies like Finvolution are engaging with global organizations, signaling a trend toward international cooperation and standardization.
Emergence of New Players: Early-stage ventures such as Fintech Grace are capturing attention with innovative solutions that could redefine customer experiences and operational efficiencies.

These trends are reshaping the financial landscape, prompting industry insiders to rethink their strategies, operational models, and long-term visions. In the following sections, we examine these developments in greater detail.

Plaid’s Record-Breaking Funding Round: A Catalyst for Growth

One of the standout stories in today’s fintech news is the extraordinary funding round secured by Plaid. Raising an impressive $575 million at a valuation of $6 billion, Plaid has once again demonstrated its pivotal role in connecting financial data to innovative digital applications.

The Details Behind the Funding

Plaid, renowned for its ability to facilitate seamless connections between banks and apps, has long been a crucial enabler in the fintech ecosystem. This new infusion of capital is expected to not only bolster its technological capabilities but also extend its market reach. Investors are betting on Plaid’s robust business model and its critical role in the digital finance infrastructure, ensuring that the company remains at the forefront of fintech innovation.

The funding round has set a high bar, underscoring the growing appetite among venture capitalists for fintech solutions that streamline financial interactions in an increasingly digital world. The impressive valuation reflects both the company’s current achievements and its potential for future growth.

Industry Implications

The implications of Plaid’s successful funding round are far-reaching:

Accelerated Innovation: With new resources at its disposal, Plaid can accelerate the development of its products, enhancing functionalities that are crucial for both businesses and consumers.
Increased Market Penetration: The capital will enable Plaid to expand its services into new markets, both domestically and internationally, further solidifying its position as an indispensable partner in the digital finance ecosystem.
Competitive Benchmark: For competitors and newcomers alike, Plaid’s valuation serves as a benchmark, driving innovation and encouraging other companies to push the envelope in their offerings.

While some skeptics might point to the risks inherent in high valuations, the current market sentiment remains overwhelmingly positive. Investors are clearly optimistic about the future of financial technology and the role that companies like Plaid will play in shaping that future.

(Source: CNBC)

Circle’s Bold Move Towards an IPO

Another major highlight in the fintech news cycle is Circle’s decision to file a registration statement for an IPO in the United States. This move represents a significant milestone for a company that has consistently been at the forefront of digital asset innovation.

The Strategic Rationale

Circle’s registration for an IPO is emblematic of the broader trend among fintech companies seeking to transition from private to public markets. The decision to go public is not made lightly; it reflects the company’s confidence in its growth trajectory and its ability to meet the stringent requirements of public market scrutiny. The move is expected to provide Circle with a more robust platform for scaling its operations, diversifying its revenue streams, and enhancing its brand visibility.

This strategic step also comes at a time when the cryptocurrency and digital asset markets are maturing. With increasing institutional acceptance and a growing regulatory framework, Circle’s IPO could serve as a bellwether for other fintech companies contemplating similar transitions. The public market listing will also offer retail investors a direct opportunity to participate in the growth story of a company that has been a key innovator in the digital finance space.

Broader Market Impact

Circle’s IPO registration has several broader implications:

Market Validation: An IPO is a powerful signal of market maturity and investor confidence. Circle’s move can validate the fintech model for other companies in the space, paving the way for a wave of similar listings.
Enhanced Transparency: Public companies are subject to rigorous disclosure and regulatory standards, which can enhance transparency and accountability—an increasingly important factor for investors in the fintech space.
Innovation Catalyst: The infusion of public capital can drive further innovation within Circle, allowing the company to invest in new technologies and expand its service offerings.

Critics, however, caution that the transition to public markets will also bring challenges, including heightened scrutiny, the need for robust corporate governance, and the pressure of meeting quarterly expectations. Nevertheless, the overall sentiment remains optimistic, with many analysts predicting that Circle’s IPO could herald a new era of growth for the digital asset industry.

(Source: Fintech Futures)

Regulatory Developments: Connecticut Orders Fintech Repayment

While the market continues to celebrate new funding rounds and IPO preparations, regulatory developments remind us that the fintech industry is not immune to scrutiny. A recent decision in Connecticut has forced a fintech firm to repay $843,000 to defrauded investors, underscoring the importance of compliance and ethical business practices.

Unpacking the Incident

The case in Connecticut highlights the challenges that fintech companies face in maintaining transparency and safeguarding investor interests. The repayment order was issued following an investigation into practices that misled investors, emphasizing that even in a sector defined by innovation, there must be strict adherence to regulatory standards.

This incident serves as a stark reminder of the potential pitfalls in the fintech space, where rapid growth and a relentless drive to innovate can sometimes lead to oversights. Regulatory bodies are increasingly vigilant, ensuring that companies do not compromise on the principles of fairness and accountability.

Lessons for the Industry

The Connecticut case offers several critical lessons for fintech firms:

Rigorous Compliance: As fintech companies expand their operations, they must invest in robust compliance frameworks to prevent fraudulent activities and protect investors.
Transparency as a Cornerstone: Trust is the foundation of the fintech industry. Ensuring transparency in all dealings not only safeguards investor interests but also builds long-term credibility.
Proactive Regulatory Engagement: Companies that proactively engage with regulators and adopt best practices in corporate governance are better positioned to navigate the complex regulatory landscape.
Risk Management: In a fast-moving market, establishing strong risk management protocols is essential. This includes regular audits, independent oversight, and a culture of accountability.

For investors and industry stakeholders, the Connecticut decision is both a cautionary tale and a call to action. It reinforces the need for vigilance and robust governance frameworks, particularly as fintech companies continue to push the boundaries of what’s possible.

(Source: American Banker)

Finvolution’s Globalization Talks: A Step Toward International Collaboration

In a move that signals the global ambitions of fintech firms, Finvolution has entered into discussions with the United Nations and Pakistani officials to explore opportunities for fintech globalization. This groundbreaking initiative is aimed at harmonizing financial technologies across borders, setting the stage for increased cooperation and innovation on a global scale.

The Essence of Globalization in Fintech

Finvolution’s talks represent a significant step in recognizing that fintech is not confined by geographical boundaries. In an increasingly interconnected world, the need for standardized practices, regulatory harmonization, and cross-border collaboration is more pressing than ever. By engaging with global institutions like the United Nations, Finvolution is positioning itself as a leader in driving international dialogue on fintech best practices.

These discussions are expected to cover a broad range of topics, including cybersecurity, digital identity, regulatory standards, and sustainable finance. The aim is to create an environment where fintech innovation can thrive while ensuring that the global financial system remains secure and inclusive.

Strategic Implications for the Industry

The implications of Finvolution’s international engagement are profound:

Regulatory Harmonization: One of the most significant challenges facing the fintech industry is the patchwork of regulatory regimes across different jurisdictions. Global talks can pave the way for more uniform standards that benefit both companies and consumers.
Cross-Border Investment: As regulatory barriers decrease, there is potential for increased cross-border investment and collaboration, opening up new avenues for growth and innovation.
Enhanced Security Protocols: International dialogue can lead to the development of more robust cybersecurity measures, ensuring that fintech systems are resilient against global threats.
Promotion of Inclusion: Global standards can help ensure that fintech innovations are accessible to a broader population, supporting financial inclusion initiatives worldwide.

The initiative taken by Finvolution highlights the importance of viewing fintech not just as a local or national phenomenon but as a global movement with the potential to redefine how financial services are delivered around the world.

(Source: PR Newswire)

Fintech Grace: Pioneering the Next Wave of Innovation

The final piece in today’s briefing centers on Fintech Grace—a rising star in the fintech arena that has recently attracted significant seed investment. While still in the early stages of its journey, Fintech Grace embodies the innovative spirit that is driving the sector forward.

The Investment and Its Implications

Seed investments are often the lifeblood of innovation, and Fintech Grace is no exception. The recent seed investment signals a strong vote of confidence from early-stage investors who see great potential in the company’s business model and technology. As Fintech Grace positions itself to capitalize on emerging market trends, this investment will enable the company to accelerate its product development, expand its team, and explore new market opportunities.

This development is particularly noteworthy because it highlights a broader trend: while mega funding rounds for established players like Plaid dominate headlines, the seed-stage landscape remains fertile ground for groundbreaking ideas and disruptive technologies. Investors are increasingly aware that the next big breakthrough in digital finance might well come from a small, agile startup capable of pivoting quickly to address unmet needs.

Broader Industry Impact

The rise of Fintech Grace is significant for several reasons:

Innovation Pipeline: Emerging startups like Fintech Grace are the testing grounds for new ideas that could revolutionize digital finance. Their successes can spur further innovation across the industry.
Diverse Investment Opportunities: The infusion of capital into seed-stage ventures broadens the spectrum of investment opportunities, fostering a more diverse and resilient fintech ecosystem.
Market Disruption: Startups with innovative solutions have the potential to disrupt traditional models, driving incumbents to innovate or risk obsolescence.
Inspirational Leadership: The story of Fintech Grace serves as an inspiration for other entrepreneurs who dare to challenge the status quo in a rapidly evolving market.

The excitement surrounding Fintech Grace underscores the dynamic nature of the fintech space, where innovation can emerge at any stage of a company’s lifecycle. It is a testament to the industry’s ongoing evolution and the unyielding drive to redefine how we interact with financial systems.

(Source: WWD)

Expert Analysis: Connecting the Dots in Today’s Fintech Landscape

Each of these stories tells a part of the larger narrative that is unfolding in the fintech sector. Together, they offer a window into the multifaceted nature of digital finance—a space where rapid innovation, regulatory challenges, and global ambitions converge to create an ever-changing landscape.

Innovation and Investment: A Symbiotic Relationship

The infusion of capital into established players like Plaid, coupled with the bold steps of companies like Circle, highlights the robust relationship between innovation and investment. When investors place their bets on fintech companies, they are not merely funding a business model; they are endorsing a vision of a more interconnected, efficient, and customer-centric financial future. However, as the stakes rise, so does the need for accountability and sound governance, as evidenced by the regulatory actions in Connecticut.

The dynamic interplay between private investment and public market activity is another aspect worth noting. As fintech companies transition from private startups to publicly listed entities, they bring with them a level of transparency and accountability that can drive broader market confidence. This transition is crucial for the sustainability of the industry, ensuring that the high-flying ambitions of today are matched by robust structures for tomorrow.

The Role of Regulation in Sustaining Growth

While the rapid pace of innovation is a source of optimism, regulatory oversight remains a critical component of the fintech ecosystem. The case in Connecticut is a clear reminder that financial innovation must go hand in hand with consumer protection and ethical business practices. As fintech companies continue to push the boundaries of what is possible, regulators are tasked with striking the delicate balance between fostering innovation and safeguarding public trust.

In a landscape marked by rapid change, proactive regulatory engagement is more important than ever. Companies that adopt a forward-looking approach to compliance are likely to fare better in the long run, building resilient business models that can withstand both market turbulence and evolving regulatory frameworks.

Globalization: Expanding the Horizons of Fintech

The engagement of Finvolution in globalization talks represents a paradigm shift for the fintech industry. No longer confined by national borders, fintech companies are now looking to create networks of collaboration that span continents. This global perspective not only expands market opportunities but also encourages the harmonization of standards—a development that could ultimately lead to a more stable and secure global financial system.

By integrating diverse perspectives and regulatory practices, the fintech industry can better navigate the complexities of a digital economy that is increasingly interconnected. This shift toward globalization is a clear indicator that the future of finance lies in international cooperation, where best practices are shared and innovations are scaled across different markets.

The Road Ahead: Trends and Predictions

As we look ahead, several trends are likely to shape the fintech landscape:

Sustained Investment: Despite economic headwinds, investment in fintech is expected to remain robust. Companies that continue to innovate and adapt to changing market dynamics are poised to attract significant capital.
Evolving Regulatory Frameworks: As fintech solutions become more embedded in everyday life, regulators will likely introduce new frameworks to ensure consumer protection and systemic stability. This evolution will require companies to remain agile and proactive in their compliance efforts.
Expansion into New Markets: With globalization in full swing, fintech companies are set to explore untapped markets, leveraging technology to offer financial services to a broader audience. This trend is likely to drive financial inclusion and spur economic growth in emerging regions.
Focus on Security and Transparency: In an era marked by cybersecurity threats and data privacy concerns, fintech firms will need to invest heavily in secure technologies and transparent practices to maintain consumer trust.
Integration of Emerging Technologies: From artificial intelligence and blockchain to biometric authentication, the integration of emerging technologies will continue to drive the evolution of fintech, creating new opportunities and challenges alike.

The interplay of these factors will define the future trajectory of the fintech sector, creating an environment that is as challenging as it is full of potential.

Concluding Thoughts: Navigating the Future of Fintech

Today’s fintech landscape is a testament to the relentless pursuit of innovation. With significant capital injections, bold strategic moves, and an increasing emphasis on regulatory compliance and international collaboration, the industry is poised for transformative change. The stories we’ve explored today—from Plaid’s record-breaking funding round and Circle’s IPO ambitions to the regulatory intervention in Connecticut and Finvolution’s globalization talks—each contribute a vital piece to the intricate puzzle of modern finance.

As an industry observer, it is clear that the fintech sector is not merely a collection of isolated incidents or fleeting trends. Instead, it represents a profound shift in the way we understand, interact with, and manage financial systems. The decisions made by companies today will have long-lasting effects on consumer behavior, regulatory policies, and the overall stability of the financial ecosystem.

Looking ahead, fintech leaders must balance ambition with prudence. The drive to innovate must be tempered with a commitment to ethical practices and regulatory compliance. Investors, too, have a role to play, as their support can fuel the next wave of transformative technologies—if only they remain vigilant about the risks inherent in such rapid growth.

For the consumer, the promise of fintech is one of convenience, efficiency, and empowerment. As companies like Plaid, Circle, Finvolution, and Fintech Grace continue to push the boundaries, they are not just building products; they are crafting experiences that could redefine the relationship between individuals and their finances. This evolution, however, requires constant dialogue between industry players, regulators, and consumers—a dialogue that ensures innovation is both responsible and inclusive.

In conclusion, today’s briefing is a call to action for everyone involved in the fintech ecosystem. The momentum is undeniable, the challenges are real, and the potential is limitless. As we navigate these transformative times, let us remain committed to a future where technology and finance merge to create a system that is innovative, secure, and accessible to all.

In-Depth Perspectives: Expert Opinions and Market Insights

In the dynamic world of fintech, opinions matter as much as hard data. Industry experts are increasingly vocal about the need for innovation that is grounded in sound business practices and robust regulatory oversight. Here, we delve into some of the expert perspectives that are shaping today’s discourse:

Balancing Disruption with Responsibility

Many experts believe that while fintech companies must remain agile and innovative, there is no substitute for a strong ethical foundation. The recent regulatory action in Connecticut serves as a stark reminder that market disruption must not come at the expense of investor trust and consumer protection. Thought leaders argue that the fintech industry should adopt a model of “responsible disruption,” where innovation is pursued with an unwavering commitment to transparency and accountability.

This perspective is particularly relevant in light of the rapid capital inflows witnessed in the sector. As investors continue to pour money into fintech startups and scale-ups, the pressure to perform can sometimes overshadow the need for robust risk management. By focusing on responsible innovation, companies can mitigate these risks while still capturing the immense opportunities that lie ahead.

The Global Fintech Ecosystem: Challenges and Opportunities

Internationalization is not just a buzzword; it is an inevitable outcome of the digital age. Experts contend that the path to a truly global fintech ecosystem involves reconciling diverse regulatory frameworks, technological standards, and cultural differences. Finvolution’s recent engagement with global organizations is a positive step in this direction. It demonstrates that fintech is not merely a collection of local innovations but a globally integrated movement that can drive financial inclusion and economic growth on a massive scale.

The road to globalization is, however, fraught with challenges. Harmonizing regulatory standards and ensuring data security across borders require sustained dialogue and cooperation. Industry leaders emphasize that collaboration—rather than competition—will be the key to unlocking the full potential of a global fintech ecosystem.

Looking Ahead: Trends That Will Define the Next Decade

Several trends are poised to shape the future of fintech:

Technological Integration: The blending of traditional financial services with cutting-edge technology will create hybrid models that are more efficient, secure, and customer-centric.
Evolving Consumer Expectations: As digital natives become the dominant consumer demographic, the demand for personalized, seamless financial services will only grow.
Sustainability and Social Impact: Beyond profit, fintech companies are increasingly expected to contribute to social and environmental goals. Sustainable finance initiatives and impact investing are becoming integral parts of many firms’ strategies.
The Rise of Decentralized Finance (DeFi): With blockchain technology maturing, decentralized financial services are set to challenge traditional banking models, offering new ways for consumers to access financial products and services.

By embracing these trends, fintech companies can position themselves not only as industry leaders but as pioneers of a new financial paradigm that is both inclusive and forward-thinking.

Final Reflections: The Intersection of Innovation, Regulation, and Global Vision

As we wrap up today’s industry brief, it is important to reflect on the interconnectivity of the developments we’ve discussed. Innovation in fintech is not a standalone phenomenon—it is deeply intertwined with regulatory frameworks, global ambitions, and evolving consumer needs. The successful funding of Plaid, the IPO preparations at Circle, the regulatory intervention in Connecticut, the international talks spearheaded by Finvolution, and the seed investment in Fintech Grace all point to a sector in the midst of profound transformation.

This convergence of innovation, regulation, and globalization presents both opportunities and challenges. On one hand, the rapid pace of technological advancement promises to revolutionize financial services, making them more accessible and efficient than ever before. On the other hand, the need for robust oversight and ethical governance cannot be understated. Fintech companies must navigate these dual imperatives if they are to sustain long-term growth and deliver value to both investors and consumers.

As an industry observer and analyst, I see today’s news as part of a broader narrative—a narrative that speaks to the potential of fintech to redefine how we live, work, and interact with money. The future of finance is being written today, with each decision, investment, and regulatory action contributing to a legacy that will shape the industry for years to come.

The landscape ahead is both exciting and uncertain. Yet, what remains clear is that fintech will continue to be a force of transformation, driven by the twin engines of innovation and collaboration. For investors, entrepreneurs, regulators, and consumers alike, staying informed and engaged is essential. The stories we’ve explored today are more than just headlines—they are the building blocks of a future where financial services are not only more advanced but also more equitable and secure.

In closing, let this daily briefing serve as both an update and an invitation—a call to delve deeper into the forces shaping our financial future and to actively participate in a dialogue that is as dynamic as the industry itself.

A Glimpse Into Tomorrow’s Fintech World

Looking to the horizon, it is evident that the fintech sector will continue to evolve in unexpected ways. Technological breakthroughs, evolving regulatory landscapes, and the drive for global integration will all play a role in defining the next chapter of digital finance. As we consider the road ahead, several key areas warrant special attention:

The Convergence of Technology and Finance

The fusion of technology and finance is accelerating, driven by advancements in artificial intelligence, blockchain, and data analytics. These technologies are not only enhancing operational efficiencies but also enabling entirely new business models that can disrupt traditional financial services. In the coming years, we can expect to see a greater integration of these technologies, leading to innovations that redefine risk assessment, customer engagement, and financial management.

Consumer Empowerment Through Digital Innovation

At the heart of fintech’s promise is the empowerment of consumers. As digital solutions become more sophisticated, they offer unprecedented levels of personalization and convenience. From mobile banking apps that provide real-time insights to automated investment platforms that democratize access to financial markets, the modern consumer is more informed and empowered than ever before. This trend is likely to accelerate, with companies continuously seeking to tailor their offerings to meet the evolving demands of a tech-savvy population.

Regulatory Evolution in a Digital Age

The regulatory environment for fintech is set to undergo significant changes as lawmakers and industry experts work to strike a balance between fostering innovation and ensuring systemic stability. Future regulations are expected to be more adaptive, leveraging technology to monitor compliance in real time while providing clear guidelines that encourage responsible innovation. This proactive regulatory stance will be essential in building a resilient financial system that can adapt to rapid technological change.

Global Integration and Collaborative Innovation

The international dimension of fintech will become increasingly important as companies seek to expand their horizons beyond domestic markets. Collaborative initiatives like Finvolution’s global talks represent a positive step towards creating a harmonized regulatory and operational framework across borders. This global integration will facilitate the free flow of capital, ideas, and technology, further driving innovation and economic growth on a worldwide scale.

The Role of Investment in Shaping the Future

Investment remains a critical driver of fintech innovation. The continued interest from venture capitalists, institutional investors, and even retail investors will provide the necessary fuel for startups and established companies alike to experiment, innovate, and scale. As funding strategies evolve and new financial instruments emerge, the fintech ecosystem will become even more dynamic, with investment decisions playing a key role in determining which innovations ultimately succeed in the marketplace.

A Comprehensive Recap of Today’s Headlines

To summarize today’s key developments in the fintech world:

Plaid’s Funding Triumph: With a remarkable $575 million raised at a $6 billion valuation, Plaid’s achievement underscores the importance of robust financial infrastructure in driving digital innovation. Investors continue to back the company’s vision, signaling strong market confidence in its ability to lead the fintech revolution.
(Source: CNBC)
Circle’s IPO Preparations: Circle’s filing of a registration statement for a U.S.-based IPO marks a pivotal moment in its evolution, reflecting the growing maturity of digital asset markets and the company’s readiness to embrace public market discipline. This move could pave the way for other fintech innovators to follow suit, bridging the gap between private innovation and public accountability.
(Source: Fintech Futures)
Connecticut’s Regulatory Intervention: The decision to mandate a fintech company to repay $843,000 to defrauded investors in Connecticut serves as a critical reminder of the need for transparency, ethical practices, and rigorous compliance in an industry marked by rapid innovation and high stakes.
(Source: American Banker)
Finvolution’s Globalization Initiative: By engaging in discussions with the United Nations and Pakistani officials, Finvolution is charting a course for international collaboration, highlighting the potential for harmonized regulatory frameworks and global financial integration that could benefit the industry as a whole.
(Source: PR Newswire)
The Emergence of Fintech Grace: The recent seed investment in Fintech Grace signals strong early-stage interest in innovative fintech solutions, emphasizing that groundbreaking ideas can originate from startups poised to disrupt traditional models and drive the future of digital finance.
(Source: WWD)

Each of these stories, while distinct in its focus, contributes to the overarching narrative of a fintech industry that is bold, innovative, and increasingly global in its outlook. They are not isolated incidents but interconnected developments that together signal a transformative era in financial technology.

Final Words: Embracing a New Era in Fintech

In reflecting on today’s developments, it becomes clear that the fintech industry is at a crossroads—where innovation meets regulation, where local successes inspire global ambitions, and where financial services are being reimagined for a digital future. This dynamic interplay of investment, strategy, and oversight is reshaping the industry, presenting both unprecedented opportunities and significant challenges.

As fintech companies continue to evolve, they must balance their drive for innovation with a commitment to ethical practices and consumer protection. Investors, regulators, and industry leaders alike must collaborate to build a framework that not only nurtures creativity but also safeguards the integrity of financial systems worldwide.

The future of fintech is bright, yet it demands vigilance, adaptability, and a forward-thinking approach. By staying informed, engaging in constructive dialogue, and embracing the inevitable changes that lie ahead, all stakeholders in the ecosystem can contribute to building a financial landscape that is inclusive, secure, and innovative.

Thank you for joining me on this detailed exploration of today’s fintech news. As we navigate these transformative times together, let us keep our focus on what matters most: driving progress in a way that benefits everyone.

The post Fintech Pulse: Your Daily Industry Brief – April 3, 2025 | Plaid, Circle, Finvolution, Fintech Grace appeared first on News, Events, Advertising Options.

Fintech PR

Solomon Global: Gold Hits $3,170 as Central Banks and Investors Drive 40% Surge

Published

6 hours ago

April 3, 2025

CISION (PR Newswire)

– spot price of precious metal increases 19% in Q1 of 2025 –

LONDON, April 3, 2025 /PRNewswire/ — Gold’s meteoric rise continues, with the precious metal setting its 21st record high of the year.

The economic uncertainty caused by Trump’s tariff assault has been a major driver of gold’s price with ‘safe-haven’ buying pushing the precious metal to an unprecedented $3170.65 per troy ounce^[1]. Between April 1st, 2024, and April 1st, 2025, gold has risen $902.5 per troy ounce, equating to a 40.2% gain. The S&P 500 and FTSE 100 have posted more modest gains of 7.2% and 8.8%, respectively, over the same period, while the US Dollar Index (DXY), which measures the dollar’s strength against a basket of major currencies and typically moves inversely to gold, has declined nearly 6% since Trump’s inauguration on January 20th, 2025.

Central banks remain key players in gold’s ascent. The World Gold Council’s Gold Demand Trends: Full Year 2024 report said that central bank buying had exceeded 1,000t for the third consecutive year, accelerating sharply in Q4. It also highlighted in March that central banks remained bullish on bullion in January 2025 and had reported 18t of net purchases at the start of the year.

Paul Williams, managing director of Solomon Global, a company specialising in the secure delivery of physical gold bars and coins for private ownership, stated in March that gold at $3,500 by summer was within the realms of possibility. Goldman Sachs, in a report released on March 26^th, upped its year-end gold price outlook and noted that in a tail-risk scenario, gold prices could even exceed $4,200 per troy ounce by the end of 2025.

“Gold’s soaring value is a stark barometer of global unease, reflecting deep economical and geopolitical tensions,” said Paul Williams, MD of Solomon Global. “With no relief in sight for the forces driving this surge, any significant near-term retreat seems unlikely. Even at record levels, gold demand remains robust because investors recognise the precious metal’s ongoing role as a hedge against inflation, geopolitical instability, and financial market volatility.”

For more information about Solomon Global’s products and services, visit the website at https://solomon-global.com.

NOTES TO EDITORS

About Solomon Global

Solomon Global specialises in the secure delivery of physical gold bars and coins for private ownership. The company takes a uniquely consultative approach to purchasing and selling physical gold and silver, regardless of the investment amount. Its simple and tailored strategy is designed to work with beginners and experienced investors alike.

Solomon Global’s team of experienced professionals is always available to provide practical solutions for clients – including products that are exempt from Capital Gains Tax – and assist with any inquiries.

Solomon Global was awarded ‘Most Trusted UK Gold Bullion Supplier 2024’ at The London Investor Show Awards 2024.

For any questions about buying or selling gold and silver, contact the team here: https://solomon-global.com/contact/

For further press information, please contact: Francesca De Franco on 0794 125 3135 or email fdefranco1@gmail.com

^[1]Hit a peak of $3170.65 on April, 3^rd 2025 (source: https://www.royalmint.com/gold-price)

[i][i] Disclaimer: This press release is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.

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Fintech PR

KuCoin Surpasses 40 Million Registered Users, Demonstrating Commitment to Compliance and Innovation

Published

9 hours ago

April 3, 2025

CISION (PR Newswire)

kucoin-surpasses-40-million-registered-users,-demonstrating-commitment-to-compliance-and-innovation

VICTORIA, Seychelles, April 3, 2025 /PRNewswire/ — KuCoin, a leading global cryptocurrency exchange, is proud to announce that it has surpassed 40 million registered users worldwide. This significant milestone underscores the trust and confidence the global community places in KuCoin and its commitment to providing secure, compliant, and innovative products and services.

Unwavering Commitment to Compliance

KuCoin’s growth is not just in numbers but also in its steadfast commitment to compliance and user protection. The exchange has made substantial progress on the regulatory front, including a pivotal settlement with the Department of Justice (DOJ). This agreement marked a new chapter for KuCoin, resolving past compliance challenges and setting a clear path for future operations. Additionally, KuCoin’s application for the Markets in Crypto-Assets Regulation (MiCAR) license in Austria is another testament to its dedication to adhering to global compliance standards, ensuring that it operates within the legal frameworks essential for servicing EU and EEA markets.

Trusted and Innovative Solutions Driving Growth

KuCoin has continually introduced innovative products that resonate with users worldwide. From advanced trading solutions to user-friendly platforms for new crypto enthusiasts, KuCoin has maintained a focus on enhancing user experience and expanding its service offerings, making it one of the most versatile platforms in the crypto space. KuCoin recently launched its brand new KCS Loyalty Level Program that is designed to enhance the utility of existing and new KCS holders by introducing a tiered loyalty system that rewards users based on their KCS stakings. Krazy Degen, which serves as an all-encompassing information hub focused on displaying and monitoring multi-chain trending tokens, is also a groundbreaking feature designed to transform how traders discover and invest in early-stage, high-potential tokens directly from the blockchain.

A Word from CEO of KuCoin

“Our journey to 40 million users is not just a number—it’s a testament to the trust we’ve built with our users across the globe,” said BC Wong, CEO of KuCoin. “We remain committed to delivering a secure and dynamic trading environment, with compliance as our backbone and innovation as our path forward. This milestone reflects our ongoing efforts to not only meet but exceed the expectations of our users.”

Looking Forward

As KuCoin continues to grow, the exchange remains dedicated to enhancing its services and compliance measures. With ongoing improvements in security protocols, user education, and community engagement, KuCoin is poised to keep providing exceptional value and service to its expanding user base.

About KuCoin

Founded in 2017, KuCoin is one of the pioneering and most globally recognized technology platforms supporting digital economies, built on a robust foundation of cutting-edge blockchain infrastructure, liquidity solutions, and an exceptional user experience. With a connected user base exceeding 40 million worldwide, KuCoin offers comprehensive digital asset solutions across wallets, trading, wealth management, payments, research, ventures, and AI-powered bots.

KuCoin has garnered accolades such as “Best Crypto Apps & Exchanges” by Forbes and has been recognized among the “Top 50 Global Unicorns” by Hurun in 2024. This recognition reflects its commitment to user-centric principles and core values, which include integrity, accountability, collaboration, and a relentless pursuit of excellence. Learn more: https://www.kucoin.com/.