Magazine article American Banker

Toronto-Dominion Outlines Its U.S. Unit's Priorities

Magazine article American Banker

Toronto-Dominion Outlines Its U.S. Unit's Priorities

Article excerpt

Toronto-Dominion Bank says its majority-owned U.S. banking unit needs to remain focused on positive operating leverage as the Canadian company shifts to a U.S. strategy that emphasizes organic growth over acquisitions.

W. Edmund Clark, Toronto-Dominion's president and chief executive officer, stressed Thursday that expense control and loan and deposit growth are areas of attention for TD Banknorth Inc., of Portland, Maine.

In a conference call with analysts after Toronto-Dominion reported earnings, Mr. Clark reiterated that TD Banknorth is trying to cut expenses and "continues to face a tough environment" with the flat yield curve.

"These things don't all come in a single day," he said. "I don't think you'll see a spectacular turnaround in Banknorth's earnings" in the short term.

The $40 billion-asset TD Banknorth contributed $54.9 million, or 6.3%, to Toronto-Dominion's earnings of $846 million for its fiscal first quarter, which ended Jan. 31. TD Banknorth's acquisition of Hudson United Bancorp. of Mahwah, N.J., in January 2006 helped boost the U.S. contribution to net income in Toronto-Dominion's first quarter from 5.5% a year earlier, the Canadian company said.

Revenue from its U.S. operations was $417 million, or 14% of the Toronto company's first-quarter revenue, up from 10.4% a year earlier. The U.S. operation generated expenses of $256.6 million, 13.7% of Toronto-Dominion's expense base in the quarter, up from 9. …

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