TD Bank to focus on small US acquisitions
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