07:51 AM EST, 02/10/2025 (MT Newswires) -- TD Bank Group (TD.TO) on Monday said it will sell its entire 10% stake in Charles Schwab (SCHW) through a registered offering and US$1.5 billion share repurchase by Schwab.

TD also said it would use $8 billion of the proceeds to buy back 100 million of its shares. The rest will be invested in the bank's businesses.

"As part of our strategic review, we have been evaluating capital allocation and have made the decision to exit our Schwab investment. We are very pleased with the strong return we are generating on the Schwab shares we acquired in 2020," said TD Bank President and Chief Executive Raymond Chun.

TD will maintain a business relationship with Schwab through the Insured Deposit Account agreement.

The Globe and Mail newspaper had previously pushed for TD to sell its 10% stake in Charles Schwab and use the estimated US$13 billion in proceeds to buy back its own shares. TD was "adrift, strategically", the newspaper added, in the wake of its US$3.09-billion anti-money laundering settlement with U.S. regulators last October.