Capital AllocationTD's decision to sell its 10.1% stake in Schwab is expected to free up approximately C$20 billion in capital, which will be used to support growth and repurchase shares.
Capital StrengthThe sale of Schwab shares is projected to increase TD's CET1 ratio by approximately 165 basis points, strengthening the bank's capital position.
Financial PerformanceThe transaction is anticipated to be EPS accretive in the medium term, as TD's core businesses generate a higher return on equity than Schwab's.