Toronto-Dominion Bank

The Toronto-Dominion Bank (French: Banque Toronto-Dominion) is a Canadian multinational banking and financial services corporation headquartered in Toronto, Ontario. Commonly known as TD and operating as TD Bank Group (French: Groupe Banque TD), the bank was created on 1 February 1955, through the merger of the Bank of Toronto and The Dominion Bank, which were founded in 1855 and 1869, respectively.

Toronto-Dominion Bank
TD Bank Group
TypePublic
TSX: TD
NYSE: TD
S&P/TSX 60 component
ISINCA8911605092
IndustryFinancial services
PredecessorsBank of Toronto
The Dominion Bank
Founded1 February 1955 (1955-02-01)[note 1][1][2][3]
Headquarters
Key people
Bharat Masrani, CEO
Revenue $41.065 billion CAD (FY 2019)[4]
$11.686 billion CAD (FY2019)[4]
Total assets $1.41 trillion CAD (FY2019)[5]
Number of employees
89,031 (FTE, FY2019)[6]
DivisionsTD Canada Trust
SubsidiariesTD Securities
TD Waterhouse
TD Bank, N.A.
TD Asset Management
WebsiteTD Bank Group

In 2017, according to Standard & Poor's, TD Bank Group was the largest bank in Canada by total assets, the second largest by market capitalization, a top-10 bank in North America, and the 26th largest bank in the world.[7] In 2019, it was designated a global systemically important bank by the Financial Stability Board.

The bank and its subsidiaries have over 89,000 employees and over 26 million clients worldwide.[8] In Canada, the bank operates as TD Canada Trust and serves more than 11 million customers at over 1,091 branches. In the United States, the company operates as TD Bank (the initials are used officially for all U.S. operations). The U.S. subsidiary was created through the merger of TD Banknorth and Commerce Bank, and it serves more than 6.5 million customers with a network of more than 1,241 branches in the United States which include Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Virginia, and Washington, D.C. .[9]

History
The Bank of Toronto in 1915.
The Dominion Bank in 1930.

The predecessors of the Toronto-Dominion Bank, the Bank of Toronto, and The Dominion Bank were established in the mid 19th century, the former in 1855 and the latter in 1869.[10] In 1954, an agreement was reached between the Bank of Toronto and The Dominion Bank to merge the two financial institutions. The merger was later accepted by the Canadian Minister of Finance on 1 November 1954, and was made official on 1 February 1955. The new institution adopted the name Toronto-Dominion Bank.[10]

In 1967, TD Bank opened its new head office, the Toronto-Dominion Centre in downtown Toronto.[10] In the next year, the bank entered into a partnership with Chargex (later known as Visa Inc.).[10] The TD Bank shield logo was unveiled to the public near the end of the decade, in 1969.[10]

In 1976, TD Bank piloted its first automated teller machine (ATM), the TD 360, which was renamed The Green Machine, a name it continues to carry.[11]

In 1987, Toronto Dominion Securities Inc. was established by the bank.[10] TD Bank saw growth in the 1990s, with the acquisition of several financial assets including the commercial branches of Standard Chartered Bank of Canada. In 1992, the bank acquired the assets and branches of Central Guartanty Trust, as well as Waterhouse Investor Services in 1996.

In 1992, TD Bank and G4S Cash Solutions, a subsidiary of British security services company G4S plc, began a pilot project in Toronto that developed into a nationwide partnership in 1997. G4S Cash Solutions secured the contract to transport cash and provide first-line maintenance for the bank's ATMs – both cash dispensing and deposit pick up units." By 2010, the partnership had expanded where G4S Cash Solutions operated 2,577 ATMs, 1,093 branch night deposits, 95 weekly balanced cash dispensers as well as eight cash dispensers for branch tellers and 100 across the pavement services and hosted a discussion on the introduction of polymer banknotes in 2011 with leading Canadian financial institutions.[12]

TD Bank formed a partnership with Bank of Montreal (BMO) and Royal Bank of Canada (RBC) in 1996 to create Symcor, a private entity that offers transaction services such as item processing, statement processing and cash-management services to major banks and retail and telecommunications companies in Canada. In 2011, Symcor produces close to 675 million statements and more than two billion pages of customer statements, and processes three billion cheques annually.[13][14]

A TD Canada Trust branch. Canada Trust was acquired in 2000, and presently serves TD's Canadian commercial banking operations.

In 1998, TD Bank and the Canadian Imperial Bank of Commerce agreed to a merger. However, the Government of Canada, at the recommendation of then Minister of Finance Paul Martin, blocked the merger, as well as another proposed merger between the Bank of Montreal and the Royal Bank of Canada – believing it was not in the best interest of Canadians.[15] In 2000, Toronto-Dominion Securities bought Newcrest Capital for $224 million (75 per cent in stock and 25 per cent in cash).[16] In the same year, TD Bank also acquired Canada Trust, re-branding most of its commercial banking operations in Canada as TD Canada Trust.

21st century

In 2002, TD Bank acquired Stafford Trading and Letco Trading. In the following year, TD Bank acquired Laurentian Bank's retail branches west of Quebec.

A TD Bank, N.A. branch in New York City. TD Bank expanded into the United States in the early 21st century.

In 2004, TD Bank entered the American retail banking market, announcing an agreement to acquire the majority stake of Banknorth, a New England based bank, for a total of US$3.8 billion.[17] Banknorth was later rebranded as TD Banknorth after the sale was finalized in March 2005.

In January 2006, the company sold its United States brokerage business branded as TD Waterhouse, which it had purchased in 1984, to Ameritrade. The business was renamed TD Ameritrade.

In April 2007, TD Bank acquired all remaining shares of TD Banknorth, transforming TD Banknorth into a fully owned subsidiary of TD Bank, and resulting in it being no longer traded on the New York Stock Exchange.[18] In the same year, TD Bank acquired Commerce Bancorp, a bank based in Cherry Hill, New Jersey. Commerce Bancorp was later merged with TD Banknorth to form TD Bank, N.A. in 2008.

In 2010, the bank acquired the Florida-based Riverside National Bank of Fort Pierce; and the South Financial Group Inc. In the following year, TD Bank acquired Chrysler Financial, which was later rebranded as TD Auto Finance.[19] On 1 December 2011, TD Bank acquired MBNA's Canadian credit card business.[20] In October 2014, Affiliated Computer Services, a subsidiary of Xerox, acquired Symcor's U.S. operations from TD Bank.[21]

After Moody's Investor Service downgraded the credit worthiness of Royal Bank of Canada to Aa1 on 13 December 2010, TD Bank remained the only one of Canada's Big Five banks with a top Aaa credit rating at that point in the Great Recession (at the time, CIBC was Aa2, Scotiabank was Aa1 and Bank of Montreal was Aa2).[22] It is also ranked number 1 in the Top 1000 2012 listing.[23]

From 2014 to 2015, TD has gone through a minor restructuring which has included job cuts and other cost-cutting measures, under the leadership of Bharat Masrani, which has kept the stock price on a stable upward trend.[24]

In April 2020 it became apparent that TD Bank is a significant secured creditor involved in the voluntary administration of the Virgin Australia airline, which has debts of AUD$7 billion. The Virgin administrators declared TD Bank held an all present and after-acquired property charge over substantially the whole of the property of certain entities of the airline.[25]

Sponsorships
A sign for TD Garden, a multi-sport venue in Boston. TD Bank has held the naming rights for the venue since 2005.

Toronto-Dominion Bank, and its subsidiaries, are title sponsors for a number of sporting venues in Canada, and the United States. TD Bank holds the naming rights to several multi-sport indoor arenas including TD Garden in Boston, Massachusetts. TD Banknorth acquired the naming rights for the Boston-based venue in 2005, with the venue being known as TD Banknorth Garden until 2007. After TD Banknorth was merged to form TD Bank, N.A., the venue's dropped Banknorth from the name and was branded as TD Garden.

Other indoor stadiums sponsored by TD Bank include TD Station in Saint John, New Brunswick; and TD Place Arena in Ottawa, Ontario. TD Place Arena forms a part of TD Place at Lansdowne Park. The bank also holds the naming rights to the outdoor stadium at TD Place, known as TD Place Stadium. Other outdoor stadiums sponsored by TD Bank include TD Stadium in London, Ontario and TD Ballpark in Dunedin, Florida.

Controversies

In 2010, a trader at Toronto Dominion Bank in the UK was fined £750,000 ($1.16 million) by the Financial Services Authority for intentionally mismarking his trading positions.[26]

News outlets reported the bank's policy regarding ordinary Iranian-Canadian citizens, July 10, 2012.[27] Some one hundred personal bank accounts had been closed to this date, citing the recent ambiguous Special Economic Measure Regulation of the Canadian government. A family in Vancouver was forced to refinance a $250,000 house mortgage in 60 days to avoid foreclosure.[27]

A TD Bank document became the focus of a 2012 contempt hearing in Miami federal court. In a civil lawsuit against TD Bank, a jury found the bank liable for aiding alleged Ponzi schemer Scott Rothstein's $1.4 billion fraud.[28]

In 2015, the Canadian news website the Halifax Examiner reported that a Political action committee (PAC) established by TD Bank had donated over $50,000 to the campaigns of anti-LGBT rights politicians in the United States.[29] The article suggested that this was problematic given TD Bank's status as a sponsor of 41 LGBT Pride events across North America; TD Bank made no comment. In response to this article, on October 6, 2015, a motion was brought at the Annual General Meeting of Halifax Pride to sever ties with TD Bank if it did not provide a satisfactory response to the concerns; the motion was ultimately defeated.[30]

On March 10, 2017, the Canadian Broadcasting Corporation's (CBC) news programme Go Public reported that TD Bank employees had admitted that, under pressure to achieve sale's targets, they had increased customers' lines of credit, overdraft amounts, and Visa credit limits without advising them which is against the law. One TD financial adviser says she "invested clients' savings into funds which were not suitable, because of the SR [sales revenue] pressure". Another admitted downplaying the risk of products saying: "I was forced to lie to customers, just to meet the sales revenue targets." In an internal letter to employees, Andy Pilkington, executive vice-president of branch banking, wrote: "We don't believe the [CBC] story is an accurate portrayal of our culture," but the report provided an opportunity "to pause, reflect and ask ourselves ... how we can do better for our people and our customers."[31] The bank's stock lost 5.55% of its value on March 10, declining by $3.88 (Cdn) per share to close at $66.00 (Cdn).[32]

Notes
  1. The Toronto-Dominion Bank was a result of a merger between the Bank of Toronto and The Dominion Bank, finalized in 1955. The Bank of Toronto was established in 1855, whereas The Dominion Bank was established in 1869.

References
  1. "Historical Fast Facts". td.com. Toronto-Dominion Bank. Retrieved 13 December 2019.
  2. "TD Bank Corporate History". td.com. Toronto-Dominion Bank. Retrieved 13 December 2019.
  3. Canadian company histories. 1. Gale Canada. 1996. p. 261. ISBN 1-8964-1306-4.
  4. "2014 Financial Statements and Notes" (PDF). TD Bank. 4 December 2013. Retrieved 2014-04-24.
  5. "Corporate Information" (PDF). TD Bank Financial Group. Retrieved 18 October 2017.
  6. "TD Bank: Company Information" (PDF). The Globe and Mail. Toronto. Retrieved 2014-04-24.
  7. Mehmood, JahanZaib (11 April 2017). "The world's 100 largest banks". S&P Global. Retrieved April 9, 2018.
  8. "Corporate Information". TD Bank. Retrieved 2015-08-07.
  9. "About Us". TD Bank. Retrieved 2013-03-21.
  10. "Our Roots". TD Bank Corporate. Toronto-Dominion Bank. 2019. Retrieved 3 September 2019.
  11. "Historical Fast Facts". TD.com. Retrieved March 11, 2020.
  12. Stemman, Roy, ed. (November 2010). "Nationwide cash service for world's second largest country". Value Solutions. Essex, UK: G4S. Archived from the original on 2015-05-07.
  13. "Who We Are". Symcor. Archived from the original on 2013-03-15. Retrieved 2013-03-21.
  14. Critchley, Barry (4 April 2011). "Bank-owned Symcor misses on timing". National Post.
  15. Pound, Richard W. (2006). Fitzhenry and Whiteside Book of Canadian Facts and Dates. Fitzhenry and Whiteside. ISBN 978-1554550098.
  16. "TD Securities buys Newcrest Capital". CBC News. 7 November 2000.
  17. "TD Bank buying majority stake in Banknorth for $3.8B US". CBC News. Canadian Broadcasting Corporation. 26 August 2004. Retrieved 3 September 2019.
  18. "Frequently Asked Questions: TD Banknorth". Toronto-Dominion Bank. 2019. Retrieved 3 September 2019.
  19. Blumenthal, Jeff (1 April 2011). "TD Bank Financial completes purchase of Chrysler Financial". Philadelphia Business Journal. Retrieved 2013-03-21.
  20. "TD buys MBNA's Canadian credit card business". CBC News. 15 August 2011. Retrieved 2013-03-21.
  21. "Who We Are". Xerox. October 4, 2012. Archived from the original on January 16, 2014. Retrieved 2014-01-14.
  22. Robertson, Grant; Perkins, Tara (13 December 2010). "RBC, Manulife hit by ratings downgrades". The Globe and Mail. Toronto.
  23. "Top 1000 list". Report on Business. 28 June 2012. Retrieved 2013-03-21.
  24. Trichur, Rita; Dummett, Ben (12 February 2015). "TD Bank Reviewing Costs; More Layoffs Possible". The Wall St. Journal. Dow Jones & Company. Retrieved 2 December 2019.
  25. "Deloitte" (PDF).
  26. Muñoz, David Enrich, Cassell Bryan-Low and Sara Schaefer (September 22, 2011). "U.K. Sets Its Sights on 'Rogue' Traders". The Wall Street Journal.
  27. Kane, Laura (12 July 2012). "Iranian-Canadians furious over closure of TD Bank accounts". Toronto Star. Retrieved 2015-10-07.
  28. "Controversial TD Bank form was clear on flagging fraud". South Florida Business Journal. 25 May 2012. Retrieved 2014-01-13.
  29. Ward, Jesse (24 July 2014). "TD Bank: sponsoring Pride and politicians who are against marriage equality". Halifax Examiner. Retrieved 2015-10-07.
  30. "Halifax Pride 2015 AGM Summary". Halifax Pride. 6 October 2015. Retrieved 2015-10-07.
  31. Johnson, Erica (March 10, 2017). "'We do it because our jobs are at stake': TD bank employees admit to breaking the law for fear of being fired". CBC News. Retrieved April 9, 2018.
  32. "Toronto Dominion Bank". The Globe and Mail. Retrieved March 10, 2017.

Bibliography
  • Schull, Joseph, 100 years of banking in Canada: a history of the Toronto-Dominion Bank illustrated by Brad Smith. Vancouver: Copp Clark, c1958. ix, 222 p.: ill.; 24 cm.
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