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Td Bank Analysis Project

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Bank Analysis Course Project:
TD Bank and Royal Bank of Canada
Management of Financial Institutions MAY11 Sec A
Professor: Paul Tovbin
June 19, 2011
Dalila Springer
973-223-1204

Introduction to Banks:

TD Bank, (“TD”), is known as America's Most Convenient Bank. It is one of the 15 largest banks in the U.S., with approximately 23,000 employees and deep roots in the community dating back more than 150 years. The Bank offers a broad array of retail, small business and commercial banking products and services to more than 6.5 million customers through its extensive network of more than 1,000 retail locations throughout the Northeast, Mid-Atlantic, Florida and Metro D.C. TD Bank Financial Group (TDBFG) is a Canada based bank. The
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Online brokerage revenue increased slightly due to higher net interest income partially offset by lower transaction revenue. Advice-based revenue increased primarily due to higher average client assets. Non-interest expenses for the year were $1,813 million, an increase of $112 million, or 7%, compared with last year. The increase in expenses was mainly due to higher variable compensation associated with the increased fee-based revenue, increased trailer fees related to higher revenue from increased assets under management, the inclusion of U.K. acquisitions, higher volume-related expenses, and our continued investment in growing the sales force in advice-based businesses. These expenses were partially offset by reduced expenses in the U.S. wealth management businesses. The increase was mainly due to the U.K. acquisitions, the addition of new client-facing advisors, support staff, and increased processing staff to support higher business volumes. The efficiency ratio for the year improved to 73.8% compared to 77.1% in the prior year. Assets under administration of $224 billion as at October 31, 2010 increased by $33 billion, or 17%, compared with October 31, 2009, primarily due to net new client assets and market increases in the second half of the year. Assets under management of $183 billion as at October 31, 2010 increased by $12 billion compared with October 31, 2009.

Additionally, because of the increase in government regulation, TD has shown
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