For Canada’s TD Bank, the US has become more rags than riches | 对加拿大道明银行而言,美国已变得贫富悬殊 - FT中文网
登录×
电子邮件/用户名
密码
记住我
请输入邮箱和密码进行绑定操作:
请输入手机号码,通过短信验证(目前仅支持中国大陆地区的手机号):
请您阅读我们的用户注册协议隐私权保护政策,点击下方按钮即视为您接受。
FT英语电台

For Canada’s TD Bank, the US has become more rags than riches
对加拿大道明银行而言,美国已变得贫富悬殊

An asset cap is going to hurt. Just ask Wells Fargo
资产上限会带来伤害。问问富国银行就知道了。
00:00

Boring but steady US retail banking was once TD Bank’s prized possession, helping justify a nice premium for the stock. The same business will now do the reverse.

Canada’s second-largest bank this week agreed to pay $3.09bn in fines to the US government and pleaded guilty to charges that it failed to prevent money laundering. The fine is the largest ever levied under the US Bank Secrecy Act and represents about a third of TD’s net income last year. Worse still, regulators imposed a cap on TD’s ability to take on new US deposits.

The punishments are severe. But then again, so were the failings. Prosecutors said TD failed to monitor more than 90 per cent of the transactions on its network. Employees openly joked on the company’s instant messaging platform that the bank’s motto — “America’s Most Convenient Bank” — was marketed towards criminals. One customer, who bribed bank employees with more than $57,000 in gift cards, used TD to launder more than $470mn in drug proceeds.

undefined

An asset cap is going to hurt. Just ask Wells Fargo. The Federal Reserve capped the latter’s assets at $1.95tn in February 2018 and has yet to lift the restriction. While deposits at US commercial banks have jumped by more than $4tn since the start of 2020, according to Fed data, Wells has had to stay on the sidelines. The $77.2bn of revenue it pulled in last year is about 10 per cent lower than in 2017.

TD Bank’s asset cap differs from Wells Fargo’s in one major way. It applies only to TD’s two US retail banking subsidiaries, rather than the entire company. Those assets — at about $434bn — account for more than a fifth of the company’s overall balance sheet and generate about 30 per cent of total overall earnings, according to BMO Markets.

True, the cap will not affect TD’s US capital markets, Canadian or other operations. It could mitigate some of the impact by restructuring its balance sheet. A plan to reduce US assets by about 10 per cent and sell as much as $50bn of lower-yielding investment securities to reinvest the proceeds is a good start.

Near term, however, TD’s earnings will take a hit — with ongoing investments required to improve compliance. The share price, which has trailed most of its peers over the past year, reflects this.

On a price-to-forward-earnings basis, TD has historically traded at a premium to its Canadian rivals. But the ratio, now at 10.2 times, puts it at the bottom of the pack. Expect that gap to persist.

版权声明:本文版权归FT中文网所有,未经允许任何单位或个人不得转载,复制或以任何其他方式使用本文全部或部分,侵权必究。

特朗普过渡团队寻求在“第一天”让美国退出世卫组织

美国的迅速退出将使全球卫生机构失去主要资金来源,并削弱其应对紧急情况的能力。

谷歌推动重新确立人工智能领域的领先地位,提振了投资者信心

在经历了过山车般的一年之后,人工智能和量子计算领域的一系列突破带来了转机。

特朗普会如何解决乌克兰战争?

基辅及其欧洲盟友认为,他们有机会影响即将上任的总统结束战争的计划。但他们在提出什么建议上存在分歧。

马蒂厄•布莱希,接手香奈儿的设计师

这位新任创意总监以强调工艺与合作而著称。

必须阻止人工智能对我们知识产权的侵犯

作家不应承担从窃取其作品的公司中“选择退出”的负担。

沙特曾就马格德堡袭击事件中被扣押的男子向德国发出警告

汽车冲入繁忙的圣诞市场,导致五人死亡,200多人受伤。
设置字号×
最小
较小
默认
较大
最大
分享×