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

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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.

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."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.

"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.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.

"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. "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.

 

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