TD Auto Finance’s portfolio rises 1.6% YoY in FY Q3

TD Auto Finance 's originations and portfolio grew in the bank's third quarter, while the company also invested in additional anti-money laundering technology. TD Bank ’s U.S. indirect auto outstandings came in at $31.1 billion, up 1.6% year over year and quarter over quarter, according to the bank’s earnings presentation for the quarter ended July 31. The bank did not break out auto originations or auto-specific credit performance, but TD Bank Group President, Chief Executive and Director Raymond Chun said during the call that TD Auto Finance retail originations hit a record during the quarter. “We delivered continued momentum in U.S. retail,” he said. Auto volume growth in Q3 followed an uptick in originations in the bank’s second quarter as banks gained market share in used- and new-vehicle financing and TD eyed opportunities to grow the business, Nadir Jones , chief executive and head of TD Auto Finance, previously told Auto Finance News . AML efforts TD is investing in its anti-money laundering efforts via technology, systems and personnel as it continues to restructure on the heels of hefty U.S. fines. In 2024, the Toronto-based bank was fined $1.3 billion by the Financial Crimes Enforcement Network and $1.8 billion by the U.S. Department of Justice for failing to comply with anti-money laundering laws. In its fiscal third quarter, the bank shared its efforts to prioritize AML remediation plans . “We’ve now completed a series of important milestones,” Leo Salom , president and co-chief executive at TD Bank, said today during the bank’s fiscal year third quarter earnings call for the third quarter. During the quarter, the $2 trillion bank’s AML remediation plans included: Deployment of machine learning for transaction monitoring; Launch of suspicious activity detection training for employees; and Established the Financial Crimes Risk Management Subcommittee that will be “dedicated to the assessment and oversight of financial crime risk of new business products and services,” Salom said. More ML to come With machine learning (ML) in place to monitor transactions, the bank also plans to launch the tech for further AML detection. In the coming quarters, ML will be deployed for: Customer screening enhancements; and Addressing high-risk typologies; and Interdependency of the bank’s tech platforms. The ML “will continue to improve the effectiveness and efficiency of our program, allowing our AML team to focus their investigative expertise and intelligence,” Salom said. The bank is also ramping up other risk areas like cybersecurity and fraud detection, Ajai Bambawale , group head and chief risk officer, said during the earnings call. Editor's note: A version of this article originally appeared in Bank Automation News, an Auto Finance News sister publication. Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and take advantage of the early-bird registration before Aug. 29 here .

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