TD Bank to Close Eight Branches Amid Corporate Restructuring

The Toronto-Dominion Bank TD is set to close eight branches across New Jersey on Jan 29. 2026, including three in North Jersey, following the closure of six branches earlier this year. This was reported by NorthJersey.com, citing a company spokesperson.

Toronto-Dominion Bank’s Rationale Behind Branch Closures

The closures come as banks have been transitioning to online and mobile services while scaling back their physical channels. Further, Raymond Chun, CEO of TD Bank, stated during the investor presentation in September that the bank could save $2.5 billion annually as it migrates transactions to digital, grows digital sales, enhances front-line productivity, and optimizes branch size, hours, location and capacity.

“Branches have always been a TD strength, and they will continue to be a strong competitive advantage. But we need to reshape the role of a branch in a digital era. We're transforming branches from transaction hubs to high-value advice centers”, Chun added.

TD Bank has been simplifying its operations to keep pace with evolving customer banking habits. The bank noted that reducing its physical presence will free up resources to upgrade branches, broaden its ATM network, and enhance its digital and mobile services.

Last year, the company suspended its medium-term growth targets and initiated a comprehensive strategic review as the bank’s expenses surged, in light of higher spending on staff and its risk and control infrastructure.

The bank has already closed 38 branches across the United States and aims to close 51 branches in 2026 as part of its plan to reduce 10% of its U.S. footprint to optimize its return on equity in the region.

Toronto-Dominion's Zacks Rank & Price Performance

Over the past six months, TD shares have risen 28.2% compared with the industry’s 20.7% growth.

Currently, TD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Restructuring Plans by Other Finance Firms

Last month, HSBC Holdings PLC HSBC announced its plans to privatize its Hong Kong subsidiary, Hang Seng Bank, with a valuation of approximately $37 billion (HK$290 billion). Hang Seng shares are listed on the Hong Kong Stock Exchange.

The move aligns with HSBC’s strategic shift toward areas where it has a competitive edge over its peers to strengthen market share and its leadership position. The proposal signifies the company’s confidence in the growth potential for both HSBC Asia-Pacific and Hang Seng.

Similarly, a Bloomberg article published on MSN reported that UBS Group AG UBS is reportedly in early discussions with investors for a potential significant risk transfer (SRT) tied to a $1 billion portfolio of corporate loans. The move comes as the bank seeks to manage stricter capital requirements proposed by regulators following the Credit Suisse collapse.

By transferring portions of its loan-related credit risk to institutional investors through SRT deals, UBS aims to free up regulatory capital, providing more flexibility to support lending, integration efforts and shareholder returns.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research