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。

令人大开眼界的时间测量新科学

在科罗拉多州没有窗户的实验室里,摆放着20台原子钟,全世界都在用它们来计时。它们几乎跟不上。

特朗普政府财政部长之争的内幕

贝森特在当选总统的宫廷内部经过激烈的影响力争夺战后获胜。

比特币和香蕉成为新的炫耀性消费品

两者都加入了无用物品的精英世界,价格越高越受欢迎。

Bluesky趁X用户流失迅速崛起,Threads未能抓住机会

在X遭遇大量用户流失之际,Meta旗下的Threads却将机会让给了只有20个员工的Bluesky。

拜登希望通过卸任前的政策突击保护自己的政治遗产不被特朗普破坏

即将离任的总统为乌克兰进行最后的推动,并寻求新的司法任命和制造业补贴。

高盛因投资北伏而损失9亿美元

这家美国银行是本周申请破产保护的瑞典电池制造商的第二大股东。
设置字号×
最小
较小
默认
较大
最大
分享×