The Toronto-Dominian Bank and its subsidiaries, collectively known as TD Bank Financial Group (TDBFG) is a Canadian based financial group, engaged in providing wide range of financial products and services. TD Bank Financial Group is one of the largest financial services providers in North America, providing retail and commercial banking, wealth management, and wholesales banking products and services, but increasing the interest rate and high level of consumer debt may affect the company prospects. Strengths
TD Bank is one of the seven largest banks in North America based on market capitalization as of October 2010. Its strong market position is the competitive advantage in North America. It is the second largest financial company in Canada, has the leading in market share in Canadian personal deposits market and is the second largest lender of personal loans. Moreover, the company also stabilizes its leading market position in active portfolio management, providing investment solution to retail, high net worth and institutional clients. In order to have to strong market position, the company has a mix of traditional and non-traditional revenue streams from four business divisions: Canadian personal and commercial banking (50.7% of the total revenues in FY2010), US personal and commercial banking (23.3%), wholesale banking (14%) and wealth management (12%). The diversity in revenue streams is the effective factor for the company to improve its growth in earnings and dividend in future. Weaknesses
Lacking of attention to credits from 2008 to 2010 leads to the decrease in loan book quality. The quality has been decreased in gross impaired loans and net impaired loans. Gross impaired loans were C$3,456 million ($3,392.1 million) in 2010, up C$1,145 million ($1,123.8 million), or 50%, over 2009. Net impaired loans were C$2,779 million ($2,727.6 million) in 2010, compared to C$1,753 million ($1,720.6 million). Moreover, according to some reports from the company...
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