TD Bank to fo­cus on small US ac­qui­si­tions

The Pak Banker - - Company& -

TORONTO: Toron­toDo­min­ion Bank (TD) will re­main fo­cused on mak­ing small ac­qui­si­tions in the U.S., not large ones, Chief Ex­ec­u­tive Ed­mund Clark said on a postearn­ings con­fer­ence call, Wall Street Jour­nal re­ported .

"I'm not anx­ious to do a large deal," he said. "We're fo­cused on small deals, not large deals."

He said there's "suf­fi­cient un­cer­tainty" given the fragility of U.S. eco­nomic growth and reg­u­la­tions that TD is "not fo­cused" on do­ing a large ac­qui­si­tion.

Toronto-Do­min­ion Bank ear­lier this year acquired three Florida banks - Amer­i­canFirst Bank, First Fed­eral Bank of North Florida and River­side Na­tional Bank of Florida - with loss-share agree­ments with FDIC to add $3.1 bil­lion in de­posits and $3.8 bil­lion in as­sets.

The bank also acquired South Fi­nan­cial Group, a trou­bled bank with 176 branches in Florida and the Caroli­nas.

Clark also expressed con­cern about the mar­ket's fo­cus on banks hold­ing more cap­i­tal than even what Basel 3 sug­gests.

"If we keep rais­ing the test higher and higher, we're putting a lot of cap­i­tal into banks that doesn't nec­es­sar­ily make them safe," he said. It will in­hibit banks from lend­ing and mak­ing ac­qui­si­tions.

Amid con­cerns about the global econ­omy, the eu­ro­zone sov­er­eign debt cri­sis, and the ris­ing U.S. fis­cal debt, Clark said TD con­tin­ues to see good re­sults from its per­sonal and com­mer­cial lend­ing ac­tiv­i­ties. "You have to feel more ner­vous about the world than you did six months ago, and yet peo­ple on the ground are more op­ti­mistic," he said. "On the ground, we're quite pleased with what we're see­ing." -PB News

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