Grauman sees TD as a value opportunity but warns that any signs of weakness might be “severely punished,” while strong results may not lift share prices due to unresolved AML concerns.
TD executives, however, remain confident in their US business despite regulatory challenges. CEO Bharat Masrani highlighted the division’s substantial growth potential, noting that TD’s US footprint serves three times as many customers as its Canadian operations.
Toronto-Dominion has invested over US$25bn in US acquisitions over the past two decades, a strategy initiated by former CEO Ed Clark.
Major deals include the US$6.3bn acquisition of Chrysler Financial, the US$8.5bn purchase of Commerce Bancorp, and the US$1.3bn acquisition of Cowen Inc. TD’s US operations now rank as the 10th largest bank in the country by assets, with nearly 1,200 branches from Maine to Florida.
The collapse of the 2022 agreement to buy First Horizon, coupled with the money-laundering probe, has raised questions about Masrani’s leadership. In response, TD has replaced around 10 senior compliance and legal executives and spent US$367m to strengthen its AML defenses.