02:52 PM EST, 12/06/2024 (MT Newswires) -- Toronto-Dominion Bank's ( MLWIQXX ) ongoing strategic review reflects the need to adapt to operational constraints as the bank suspends its medium-term financial objectives, RBC Capital Markets said in a note on Friday.

The bank reported fiscal Q4 adjusted earnings of CA$1.72 ($1.22) Thursday below RBC Capital Markets' estimate of CA$1.82.

Wholesale Banking earnings showed mixed results, while corporate and US retail earnings were below expectations due to elevated expenses, the firm added.

Earnings growth in 2025 will be challenging amid elevated costs, higher credit loss provisions, and an increased global minimum tax rate, according to the note.

The firm projects core EPS growth of only 1% for 2025, the lowest by the brokerage among peer banks.

RBC reduced price target for Toronto-Dominion to $77 from $82, but maintained sector perform rating.

Price: 51.86, Change: -0.94, Percent Change: -1.78