Embattled bank forecasts returns on equity as it reinstates growth target
After a challenging period recovering from a multi-billion dollar US fine over failures in anti-money laundering and the replacement of its senior leadership team, TD Bank has reinstated its suspended growth target and forecast return on equity of roughly 16 per cent over the next four years.
Wealth management was highlighted as a renewed area of focus for TD as it aims to grow high fee businesses. The bank plans to add more wealth management advisors and US retail financial advisors, according to Reuters. The bank plans to add 1,200 additional wealth management advisors in Canada.
The bank said, at its first investor day since pleasing guilty to US money laundering charges, that it would cut annual costs by $2 billion (CAD). Some of those savings are set to come from a restructuring program, while others come from the use of automation and artificial intelligence. The bank projects that it will cut $500 million in costs and add $500 million in revenue with AI.
The restructuring program launched under new President & CEO Raymond Chun is set to cut the bank's workforce by two per cent and sell the bank's stake in Charles Schwab. The plan is intended to return capital to shareholders. TD announced a buyback program between six and seven billion dollars Canadian.
