Toronto-Dominion Bank was established as a single branch in 1855, serving grain millers and merchants in Toronto. As Canada’s second-largest bank, its growth prospects remain robust. Key points include:
- More than 74,000 employees worldwide, although it maintains its North American focus.
- Total assets of $450 billion.
- 1,100 outlets in the Eastern United States, following the purchases of Banknorth and Commerce Bancorp.
- An ownership stake in the TD Ameritrade (AMTD) online brokerage for U.S. customers.
- Operates in all same areas of banking and banking services as Royal Bank of Canada.
- Has not missed declaring or paying dividends on preferred or common shares since 1857.
If you’re thinking about investing, but you’re worried we may be headed into a full-blown depression, you’ll be interested to know that Canada saw no bank failures during the Great Depression.
That, and the fact that the Canadian banking system ranks as the world’s best, should provide a measured amount of comfort.
The World Economic Forum (a Geneva based think-tank) ranked Canadian banks as the soundest in the World. The US finished 40th. Lower usage of leverage and more conservative lending practices have led to relatively healthy balance sheets for Canadian banks compared to competitors in the US, Europe, and parts of Asia. The good capital ratios will allow the banks to buy plenty of cheap assets when the dust settles from the 2008 Financial Crisis.
