TD Bank to focus on the one million people with at least $100,000 in assets who are already customers of its US retail banking unit.
TD Bank, formally know as the Toronto-Dominion Bank (TSE:TD, Mkt cap 94.98B, P/E 14.35, Div/yield 0.47/3.65. EPS 3.59, Shares 1.84B) is gearing up for an expansion of its wealth management operations in the US to tap into ageing baby boomers’ increasing focus on wealth management as a means to boost retirement savings. The move is expected to offset the pressure on income in its traditional loan business brought about by consumers’ high level of indebtedness and the lackluster mortgage market.
The lender is seeking to capitalise on its presence across 14 US states, the investing services of its online brokerage unit TD Ameritrade and the stronger position in asset management it gained through the purchase of Epoch Investment Partners Inc last year. These are considered robust prerequisites for turning US customers into wealth management clients and building a very strong presence in the US market, Leo Salom, executive vice president of wealth management at the Toronto-based lender, told Reuters last week.
TD Bank’s focus will be on the one million people with at least $100,000 in liquid assets who are already customers of its US retail banking unit. In order to reinforce its US footprint, the bank plans to recruit more private-wealth advisers in the country, bringing their number to 300 in two years’ time from 150 at present.
The lender’s TD Wealth division already has two million customers who hold a combined C$544 billion in assets, but most of them are from Canada, where the bank boasts a solid direct investing and full-service business.
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