TD Bank gets regulatory approval to buy back up to $10 billion of its shares

TD Bank has received regulatory approval to buy back up to $10 billion worth of its shares, according to the Office of the Superintendent of Financial Institutions Canada. The lender plans to initiate the buyback program on October 9th, following its announcement in September. Initially, TD Bank had intended to repurchase up to 61 million shares, which would constitute approximately 3.74 percent of its issued and outstanding shares as of August 31.

Upon completion, the new buyback program will represent up to $10 billion worth of shares. The bank intends to cancel all purchased shares, which could reduce its equity base and enhance its return on equity and earnings per share, key financial health metrics.