By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Stocks > TD to build U.S. business brick by brick, after First Horizon set back
Stocks

TD to build U.S. business brick by brick, after First Horizon set back

News Room
Last updated: 2023/05/26 at 8:09 PM
By News Room
Share
5 Min Read
SHARE

© Reuters. FILE PHOTO: The TD bank logo is seen on top of the Toronto Dominion Canada Trust Tower in Toronto, Ontario, Canada March 16, 2017. Picture taken March 16, 2017. REUTERS/Chris Helgren

By Nivedita Balu

TORONTO (Reuters) -Canada’s no.2 lender TD Bank Group will push ahead with its U.S. expansion by focusing on organic growth, after its M&A-led strategy in the world’s biggest banking market suffered a setback this month, a top official told Reuters on Thursday.

TD has made U.S. growth a key priority as it deals with a saturated market at home and had pinned its hopes on $13.4 billion bid for regional lender First Horizon (NYSE:), but that was scrapped after hitting regulatory hurdles.

With about $18 billion in excess capital, it now plans to focus on opening branches and building its wealth business in the U.S., Chief Financial Officer Kelvin Tran said in the first comments since the First Horizon deal was pulled.

“In the U.S., we are still a relatively young bank. We have a lot of white spaces there,” Tran said.

“We continue to make referrals to our wealth business. That’s still a new business in the U.S. … So lots of opportunities still there in the U.S.,” he added.

The bank has not ruled out other acquisitions.

“When we look at deployment of capital, it’s about what we can invest to drive organic growth, we look at whether there are opportunities for M&A … and then also opportunities to return capital to shareholders,” Tran told Reuters.

TD announced plans to buy back 30 million shares along with its quarterly earnings that missed expectations.

The uncertainty of the First Horizon deal has weighed on TD shares, which are down more than 7% so far this year, compared with a 3.6% drop in TSX’s banks sub-index.

Some shareholders are willing to be patient as TD seeks to grow its U.S. business.

Anthony Visano, a portfolio manager at Kingwest, a long-term TD investor, said the U.S. expansion strategy makes sense, but TD needs to shift towards wealth management.

“So, do they build or do they buy? I think they can do both in parallel. They can build locations and they can acquire the other pieces that are missing from the platform,” Visano said.

OPENING NEW BRANCHES

Masrani told investors on Thursday the bank plans to open 150 new stores by 2027 and double wealth adviser hiring. That includes opening 18 stores in the U.S. this year, on top of the 1,100 it operates in 16 U.S. states and its 12% stake in Charles Schwab (NYSE:).

It has already opened five new branches, including in south Florida, Atlanta and North Carolina – areas considered to be First Horizon’s turf – while also looking at the U.S. northeast.

“Think Boston, Philly, New York, where we think there are expanding communities, growing communities where we’ll lean into … But the Southeast is going to be a very important part of the overall equation,” Leo Salom, the head of TD’s U.S. Retail business said.

The bank earned about 40% of its second-quarter adjusted net income from its retail business in the United States, where TD is the eighth-biggest lender, as did its Canadian rival Bank of Montreal, which acquired San Francisco-based Bank of the West.

Some analysts said TD should rethink its U.S. M&A strategy.

“TD should revisit the idea of whether or not they should be pursuing aggressive growth in United States banking through acquisitions,” Veritas analyst Nigel D’Souza said.

“My argument is that they should deploy excess capital to grow their wealth management and capital markets franchises.”

Read the full article here

News Room May 26, 2023 May 26, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Strengthening EU defence won’t undermine the transatlantic alliance

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

General Atlantic follows Apollo in halting early recruitment of bankers

Stay informed with free updatesSimply sign up to the Private equity myFT…

Only a crisis will wean the west off debt

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

UN atomic watchdog rebukes Iran over nuclear breaches

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Dollar sinks to three-year low on Trump tariff threat

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

Playa Hotels & Resorts (NASDAQ:PLYA) Delivers Strong Q4 Numbers By Stock Story

By News Room
Stocks

ON24 (NYSE:ONTF) Posts Better-Than-Expected Sales In Q4 By Stock Story

By News Room
Stocks

Evolent Health shares leap on Q4 earnings beat and upbeat guidance By Investing.com

By News Room
Stocks

Chuy’s (NASDAQ:CHUY) Reports Q4 In Line With Expectations But Stock Drops

By News Room
Stocks

Red River Bancshares raises dividend to $0.09 per share

By News Room
Stocks

Ecolab appoints Microsoft executive to board

By News Room
Stocks

Semilux secures $50 million equity deal with White Lion Capital

By News Room
Stocks

US government debt trajectory to push long-term yields higher, says PIMCO

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?