At the core of the plan is an emphasis on expanding high-margin, fee-driven businesses.
TD Bank has reinstated its medium-term growth target, signaling a rebound after paying a $3 billion fine in the US for anti-money laundering failures. At the bank’s investor day on Monday — its first since pleading guilty to multiple charges — CEO Raymond Chun unveiled a plan designed to restore confidence and accelerate growth.
Chun, who stepped into the role in February, acknowledged the damage the scandal inflicted on TD’s reputation and performance. “That’s unacceptable. And that’s changing,” he told shareholders, positioning the new strategy as a reset moment for Canada’s second-largest bank.
At the core of the plan is an emphasis on expanding high-margin, fee-driven businesses such as wholesale banking and wealth management. TD intends to hire more wealth advisers and investment specialists in both Canada and the US to capture market share in those areas.
Chun argued that wealth management offers both stable revenues and cross-selling opportunities with TD’s retail banking base, making it a natural growth engine. The bank also aims to strengthen its US retail presence, which remains a critical part of its North American expansion strategy.
On Monday, the bank announced plans for a new buyback program worth between C$6 billion and C$7 billion, reinforcing its commitment to returning capital to shareholders.
TD shares initially dipped on the strategy update but recovered by session’s end to close slightly higher. The stock has surged 44% so far this year, outpacing all Canadian peers and rebounding from a 10% slump in 2024.
Despite a US$434 billion asset cap imposed alongside the fine, Chun insisted that TD has room to grow in the US “We’ve restructured our U.S. balance sheet to build capacity for growth,” he said, framing the U.S. market as a long-term opportunity.
Source: investmentnews.com
