Canada’s second largest bank is finding more growth opportunities in commercial banking and fewer in the personal banking market, Ed Clark, president and CEO of TD Bank Financial Group, told shareholders in Victoria yesterday.
“There is a transition in who is carrying the growth,” he said at the bank’s annual general meeting. “For TD, it’s from personal to commercial. This is a very good thing.”
His remarks echo the direction the bank has taken in B.C. Jane Russell, TD’s Pacific region senior vice-president of business banking, told BIV earlier this year that it sees the province’s business sector as a key market for growth (see “TD sees BC as key to bank’s growth” – issue 1109; January 25-31).
Clark said business confidence has moved up in recent months and leaders are starting to reinvest in their businesses – something he said all companies need to do. “Given the high Canadian dollar, it’s critical they do that – buying new equipment [and] new technology and improving productivity to be competitive.”
Many financial institutions have posted double-digit growth in the past year (see “Expansion through specialization” – issue 1116; March 15-21). Clark noted TD posted a 25% increase in earnings in 2010. But he told shareholders he was expecting 6% to 7% growth in 2011. “TD may not grow at the same pace, but will still do quite well, and beat the competition.”
A primary obstacle to its growth plans is the threat of business confidence faltering in North America. Clark says this is possible given the number of “black swans” in the global economy – from the European fiscal crisis to stagnation in the U.S. housing market, to expanding political uncertainty in the Middle East and the disasters in Japan.
But he remained confident the bank’s growth won’t be too affected this year. “A lot of what will happen in 2011 has already been determined. What really becomes an issue is 2012 and 2013.”