TD looks to expand U.S. presence through acquisitions - CEO

By John Tilak and Carmel Crimmins
NEW YORK, Sept 11 (Reuters) - Toronto Dominion Bank TD.TO
is interested in broadening its U.S. market presence through
acquisitions and could boost its credit card and wealth
management businesses through potential deals, Chief
Executive Bharat Masrani said on Friday.
The Canadian bank, which has grown rapidly in the U.S.
Northeast, may also bolster its reach in the Southeast,
including Florida, by going after suitable targets, he said in
an interview.
TD's U.S. balance sheet has grown quickly and includes
roughly $250 billion in assets, he said. TD, Canada's largest
lender by assets, has more than 1,300 branches along the East
Coast and is one of the 10 biggest banks in the United States.
The lender is looking to buy assets or asset-generating
units to leverage its balance sheet strength, while primarily
staying focused on organic growth, he said.
TD has acquired credit card portfolios at Target TGT.N and
Nordstrom (NYSE:JWN) JWN.N , and Masrani said if there were more such
opportunities, TD would take a very serious look.
"Our credit card exposures are still within the
concentrations that we would be comfortable with. So we have
lots more room to grow that asset class," he said. "We'd like
our (loan book) to be fairly well diversified."
TD's growth has been fueled by acquisitions in the United
States, including Banknorth in 2007 and Commerce Bancorp in
2008.
Masrani declined to say if TD was planning to snap up some
of General Electric's GE.N finance assets. TD has been flagged
as a possible buyer. ID:nL1N0YM0FD
Canadian companies have been among the most active buyers of
GE's finance assets, with Element Financial EFN.TO buying some
of its fleet management assets, CPPIB acquiring its private
equity lending portfolio and Bank of Montreal BMO.TO set to
pick up its transport finance unit.
TD has the appetite for large deals, but only if it makes
strategic and financial sense, Masrani said.
The other area of growth would be its capital markets
division, which he expects will outpace the rest of the
business.
"We have lots of room to grow without disturbing our
position (as) a predominantly retail bank," Masrani said.
TD wants to double its U.S. capital markets business over
the next three to four years, Glenn Gibson, the U.S. head of TD
Securities, said last month.
TD's push in capital markets follows efforts by Royal Bank
of Canada RY.TO and BMO to invest heavily in the U.S. market
since the financial crisis.
Strengthening its wealth management business, potentially
through acquisitions, would also help TD offer products across
the whole retail continuum, Masrani said.