Toronto-Dominion Bank
Encyclopedia
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto
Bank of Toronto
The Bank of Toronto was a Canadian bank, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank on February 1, 1955 to form the Toronto-Dominion Bank...
and the Dominion Bank
The Dominion Bank
The Dominion Bank was a Canadian bank based in Toronto and incorporated in 1869 that merged on February 1, 1955 with the Bank of Toronto to form the Toronto-Dominion Bank. -History:...
, which were founded in 1855 and 1869, respectively. TD's Institution Number (or bank number) is 004.
The bank operates as TD Bank Financial Group (French
Canadian French
Canadian French is an umbrella term referring to the varieties of French spoken in Canada. French is the mother tongue of nearly seven million Canadians, a figure constituting roughly 22% of the national population. At the federal level it has co-official status alongside English...
: Le Groupe Financier Banque TD) and has over 79,000 employees and over 19 million clients worldwide. In Canada, the bank operates as TD Canada Trust
TD Canada Trust
TD Canada Trust is the personal, small business and commercial banking operation of the Toronto-Dominion Bank in Canada. TD Canada Trust offers a range of financial services and products to more than 10 million Canadian customers through more than 1,100 branches and 2,600 ATM Green Machines...
and serves more than 11 million customers at over 1,100 branches. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, the company operates as TD Bank (the initials are used officially for all U.S. operations). The U.S. subsidiary was created through the merger of TD Banknorth
TD Banknorth
TD Banknorth, formerly just Banknorth, was a wholly owned subsidiary of the Toronto-Dominion Bank which conducted banking and insurance activities, primarily serving the northeastern area of the United States, headquartered in Portland, Maine...
and Commerce Bank
Commerce Bancorp
TD Bank, N.A., is a national banking institution in the United States which offers banking, insurance, brokerage, and investment banking services in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina,...
, and serves more than 6.5 million customers with a network of more than 1,250 branches in the eastern United States.
The company is ranked at number 86 on the Forbes Global 2000
Forbes Global 2000
The Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value...
2010 listing. In October 2008, the company was named in the listings of Canada's Top 100 Employers
Canada's Top 100 Employers
Canada's Top 100 Employers is an annual competition that recognizes the best places in Canada to work. First held in 1999, the project aims to single out the employers that lead their industries in offering exceptional working conditions and progressive human resources policies. Winners are...
in Maclean's
Maclean's
Maclean's is a Canadian weekly news magazine, reporting on Canadian issues such as politics, pop culture, and current events.-History:Founded in 1905 by Toronto journalist/entrepreneur Lt.-Col. John Bayne Maclean, a 43-year-old trade magazine publisher who purchased an advertising agency's in-house...
and Greater Toronto's Top Employers
Greater Toronto's Top Employers
Greater Toronto's Top Employers is an annual competition that recognizes the best places to work in the Greater Toronto Area...
by the Toronto Star
Toronto Star
The Toronto Star is Canada's highest-circulation newspaper, based in Toronto, Ontario, Canada. Its print edition is distributed almost entirely within the province of Ontario...
. Furthermore, in February of 2011, it was named one of Canada's top 10 employers by the Financial Post. After the Royal Bank of Canada was downgraded to Aa1 by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
on December 13, 2010 TD was the only member of Canada's Big Five banks with a perfect Aaa credit rating (at the time CIBC was Aa2, Scotiabank Aa1 and the Bank of Montreal Aa2).
Operations
The bank's headquarters is at the Toronto-Dominion CentreToronto-Dominion Centre
The Toronto-Dominion Centre, or Centre, is a cluster of buildings in downtown Toronto, Ontario, Canada, consisting of six towers and a pavilion covered in bronze-tinted glass and black painted steel. It serves as the global headquarters of the Toronto-Dominion Bank, as well as providing office and...
at King Street and Bay Street
Bay Street
Bay Street, originally known as Bear Street, is a major thoroughfare in Downtown Toronto. It is the centre of Toronto's Financial District and is often used by metonymy to refer to Canada's financial industry since succeeding Montreal's St. James Street in that role in the 1970s...
in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
. The black skyscrapers were designed by the firm of Ludwig Mies van der Rohe
Ludwig Mies van der Rohe
Ludwig Mies van der Rohe was a German architect. He is commonly referred to and addressed as Mies, his surname....
and were the first of their kind in the city. Opened in 1967, the TD Centre was the inspiration of Al Lambert (1911–2002), the former President and Chairman of the Board of the bank.
TD Bank Financial Group subsidiaries include:
- TD AmeritradeTD AmeritradeTD Ameritrade is an American online broker with over 6 million U.S. customers, and many more internationally, that has grown rapidly through acquisition to become the 746th-largest US firm in 2008. TD Ameritrade Holding Corporation is the owner of TD Ameritrade Inc...
— online discount brokerage and wealth management (owns less than 45%) - TD Asset Management — global asset management
- TD Bank, N.A. — merged entity of Commerce Bank or Commerce BancorpCommerce BancorpTD Bank, N.A., is a national banking institution in the United States which offers banking, insurance, brokerage, and investment banking services in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina,...
, TD BanknorthTD BanknorthTD Banknorth, formerly just Banknorth, was a wholly owned subsidiary of the Toronto-Dominion Bank which conducted banking and insurance activities, primarily serving the northeastern area of the United States, headquartered in Portland, Maine...
and TD Bank USA on June 1, 2008 - TD Canada TrustTD Canada TrustTD Canada Trust is the personal, small business and commercial banking operation of the Toronto-Dominion Bank in Canada. TD Canada Trust offers a range of financial services and products to more than 10 million Canadian customers through more than 1,100 branches and 2,600 ATM Green Machines...
— Canadian personal and commercial banking - TD Commercial Banking — global commercial banking
- TD Insurance — insurance products and services, including a division that specializes in Alumni/Professional group rates (formerly Meloche Monnex)
- TD Merchant Services - a wholly owned subsidiary providing credit card processing services for merchants such as retailers
- TD SecuritiesTD SecuritiesTD Securities is a leading financial services provider that offers advisory and capital market services to corporate, government, and institutional clients worldwide. They provide expertise in corporate and investment banking, capital markets, and global transaction services...
— global wholesale banking - TD WaterhouseTD WaterhouseTD Waterhouse is the brand used for both Canadian and British brokerages within the TD Bank Financial Group. It was also formerly used for TD's American brokerage....
— investment and wealth management - Symcor Transaction processing outsourcing, e.g., cheques, bills and statements. (One-third owned by each of the Royal Bank of CanadaRoyal Bank of CanadaThe Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
, the Bank of MontrealBank of MontrealThe Bank of Montreal , , or BMO Financial Group, is the fourth largest bank in Canada by deposits. The Bank of Montreal was founded on June 23, 1817 by John Richardson and eight merchants in a rented house in Montreal, Quebec. On May 19, 1817 the Articles of Association were adopted, making it...
and the Toronto-Dominion Bank.)
Wealth Management offers investors an array of investment products and services. Wealth Management comprises a number of advisory, distribution and asset management businesses, including TD Ameritrade
TD Ameritrade
TD Ameritrade is an American online broker with over 6 million U.S. customers, and many more internationally, that has grown rapidly through acquisition to become the 746th-largest US firm in 2008. TD Ameritrade Holding Corporation is the owner of TD Ameritrade Inc...
and TD Mutual Funds.
TD Securities
TD Securities
TD Securities is a leading financial services provider that offers advisory and capital market services to corporate, government, and institutional clients worldwide. They provide expertise in corporate and investment banking, capital markets, and global transaction services...
is the investment banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
arm of TD Bank Financial Group. It is an underwriter of debt and equity securities and strategic advisor to corporations, governments, and institutions worldwide. A key business segment is the trading of fixed income and equity products, currencies, commodities and derivatives in major financial markets around the world. It has offices in 18 cities worldwide with over 3,000 employees. TD Securities is a leading investment dealer in North America, has a strong presence in Europe, and is active in Asia.
History
The origins of the Toronto-Dominion Bank lie in the efforts of a group of businessmen in the Province of Canada West (as Ontario was formerly called between 1840 and 1867), involved in the buying, milling and marketing of grainCereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
. They were determined to create a financial institution to meet their specific needs in banking, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
and commodities exchange. The first petition to the legislature of the province of Canada, in 1854, for the incorporation of the Millers, Merchants and Farmers Bank of Canada West, was rejected. However, on March 18, 1855, their application for a charter for the Bank of Toronto, with an authorized capital of £500,000, was granted.
In July 1856, the Bank of Toronto
Bank of Toronto
The Bank of Toronto was a Canadian bank, founded on July 8, 1857 by George Gooderham, that merged with The Dominion Bank on February 1, 1955 to form the Toronto-Dominion Bank...
opened its offices at 78 Church Street, Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, with a staff of three and immediately began development of a provincial network of branches
Branch (banking)
A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
. In 1860, it opened its first branch outside of Ontario, in Montreal
Montreal
Montreal is a city in Canada. It is the largest city in the province of Quebec, the second-largest city in Canada and the seventh largest in North America...
.
The Bank of Toronto established itself as an efficient, profitable, but essentially conservative bank through the 19th century. It maintained a very high reserve against its capital and enjoyed the highest share price of any bank in Canada. Growth was very slow and deliberate with a few new branches opened in emerging regional centres. Core customers remained farmers, merchants, and processors of farm products (millers, brewers, distillers).
In 1871, the Bank of Toronto was joined on the Ontario scene by the Dominion Bank, launched by entrepreneurs and professionals under the leadership of James Austin. They were dedicated to creating a new institution “conducive to the general prosperity of that section of the country.” Like the Bank of Toronto, the Dominion Bank was a cautious institution, “selecting its customers carefully, serving them well, and duly prospering with them” (in the words of the official history). It too created a network of branches, and in 1872 became the first Canadian bank to have two branches in one city – Toronto.
With the maturing of the Canadian economy and the opening of northern Ontario and the West in 1880s and 1890s, the banks became more aggressive in loans to resource industries, utilities, and manufacturing. In 1897, the Dominion Bank opened its first western branch in Winnipeg
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
and two years later the Bank of Toronto opened a branch in the British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
mining town of Rossland
Rossland
Rossland can refer to:*Rossland, British Columbia, Canada** Rossland City, provincial electoral district around Rossland, British Columbia ** Rossland, provincial electoral district around Rossland, British Columbia ....
. In the first decade of the twentieth century, the banks rapidly expanded their branch networks in central Canada and across the west.
To mark their rise as significant national institutions, the Dominion Bank moved into a large new head office building at the corner of King and Yonge Street
Yonge Street
Yonge Street is a major arterial route connecting the shores of Lake Ontario in Toronto to Lake Simcoe, a gateway to the Upper Great Lakes. It was formerly listed in the Guinness Book of Records as the longest street in the world at , and the construction of Yonge Street is designated an "Event of...
s in Toronto in 1879 and the Toronto Bank followed with another landmark head office at King and Bay Street
Bay Street
Bay Street, originally known as Bear Street, is a major thoroughfare in Downtown Toronto. It is the centre of Toronto's Financial District and is often used by metonymy to refer to Canada's financial industry since succeeding Montreal's St. James Street in that role in the 1970s...
in 1913.
World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
brought new challenges for the two banks when they were called upon to finance war expenditures and to support the innovation of war bonds marketed to the general public. Half the staff of the two banks served in the armed forces.
Except for some contraction in the western provinces due to drought, the decade following the war was one of expansion and increasing profitability due to resource development and industrial expansion. Both banks weathered the storm of depression
Depression (economics)
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle....
in the 1930s without great difficulty, despite a decline in earnings. Like all Canadian banks, they endured criticism of its credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
policies and resisted the introduction of a central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
to control the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
and advise on fiscal policy
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
. Ultimately the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
was established and the banks relinquished their right to issue their own currency.
The coming of the Second World War
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
involved the banks, once again, in the marketing of war bonds and in participation in the control of foreign exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
, rationing
Rationing
Rationing is the controlled distribution of scarce resources, goods, or services. Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time.- In economics :...
, and other financial war measures. Approximately 500 staff, or almost half the total, entered the armed forces.
The Bank of Toronto and Dominion Bank emerged from the war in 1945 stronger than ever, with assets more than doubled since 1939. With the post-war boom they became more active in business lending and in the penetration of new markets. However, they quickly realized that the costs of expansion and competition with much larger rivals made their objectives difficult to realize. Neither bank had engaged in acquisitions or mergers in order to grow, but both determined that a union with a bank of equal size would place them in a much stronger position to take advantage of the opportunities of the post-war economy.
In 1954 negotiations began between the Bank of Toronto and the Dominion Bank, and by the end of the year an amalgamation agreement was reached. In their brief to the Minister of Finance
Minister of Finance (Canada)
The Minister of Finance is the Minister of the Crown in the Canadian Cabinet who is responsible each year for presenting the federal government's budget...
the banks stated: “It is more burdensome for a small bank to keep pace with the development of our country than for a large bank, with the result that the effective growth and comparative influence of smaller banks will probably in the future decline in comparison with that of the larger banks.”
On November 1, 1954, Canada's Minister of Finance announced that the amalgamation was accepted and shareholders were asked for their approval. This was forthcoming in December and on February 1, 1955, the Bank of Toronto and the Dominion Bank became the Toronto-Dominion Bank.
The first years of the new bank were dedicated to the demands of amalgamating the two predecessors, institutions of roughly equal size, but with different strengths and unique corporate cultures. Head office functions were combined, branches were consolidated, and a new regional organization was established. An aggressive program of branch modernization and expansion extended TD's presence in its traditional markets and took it into new territory in the Maritime provinces and on the natural resource frontier. The identity of the new bank was established through an active public relations campaign focused on customer service - “The Best in Banking Service”, the bank’s first slogan evolved into the highly successful “The Bank Where People Make the Difference”.
The competitive banking environment, and the need for effective integration of two administrations, led the Bank to re-assess and modernize business practices and methods through the second half of the 1950s. Procedures were streamlined, new technology was introduced, and the human resources function acquired new importance as the bank placed increased weight on customer service and product knowledge.
The bank’s emergence as a forward-looking institution was highlighted by the announcement in 1962 that it would have a new and very high profile head office in downtown Toronto. The Toronto-Dominion Centre
Toronto-Dominion Centre
The Toronto-Dominion Centre, or Centre, is a cluster of buildings in downtown Toronto, Ontario, Canada, consisting of six towers and a pavilion covered in bronze-tinted glass and black painted steel. It serves as the global headquarters of the Toronto-Dominion Bank, as well as providing office and...
, designed by Mies van der Rohe, the leading architect of the day, would include the tallest building in Canada. It would revolutionize both the skyline of Toronto and the public perception of TD.
By the 1960s, the bank had solidified its domestic base and established its credentials as a major institution. It began to look beyond its traditional spheres of operation and to explore the international scene and opportunities, domestic and foreign, for large scale project financing. A network of U.S. representative offices was developed and partnerships with global merchant banks and venture capital operations were undertaken. Heralding a new commitment to independent and syndicated project financing, in 1967 the bank undertook the financing of the massive Anvil lead-zinc-silver mining operation in Yukon
Yukon
Yukon is the westernmost and smallest of Canada's three federal territories. It was named after the Yukon River. The word Yukon means "Great River" in Gwich’in....
, the construction of the Rainbow crude oil pipeline in Alberta
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
, and resource development ventures in Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
.
The bank offered the first debenture
Debenture
A debenture is a document that either creates a debt or acknowledges it. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note...
s in Canadian banking history on May 29, 1967. The Bank Act of 1967 ushered in a period of enormous change on the Canadian financial scene. Banks were permitted for the first time to charge more than six-per-cent interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
on loans, encouraging a new emphasis on personal and specialized consumer loans. More significantly, banks could now make mortgage loans on real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
and the mortgage loan
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
portfolio quickly gained enormous significance.
By the close of 1960s the bank’s customer base had become more diverse and new products and services were being launched almost daily. The Visa
VISA (credit card)
Visa Inc. is an American multinational financial services corporation headquartered on 595 Market Street, Financial District in San Francisco, California, United States, although much of the company's staff is based in Foster City, California. It facilitates electronic funds transfers throughout...
card made its appearance (as Chargex) and mutual funds were marketed for the first time. In addition, the options for product and service delivery were greatly expanded thanks to computer and communications technology. An “On-Line Savings” system was introduced in Toronto in 1967 and ten years later the Green Machine appeared (the first “full-service” automatic teller machine (ATM) or ABM (automatic banking machine - the general term within Canadian banking), greatly enhancing the customer service capabilities of the Bank.
To establish a modern and popular brand a new logo was introduced and an official “TD green” was adopted in 1969. In the same period, television and radio advertising were utilized for the first time in order to promote the new range of products.
The bank kept in step with the times on other fronts as well. Women were encouraged to move into management roles and the first female bank manager was appointed in 1968. Little more than a decade later more than 40% of all management trainees were women.
International operations, which had gained in importance in the late 1960s, became a major focus of the Bank after 1970. New subsidiaries were launched in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
. In 1970, TD became first Canadian bank to make a substantial investment in commercial banking in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and by the end of the decade TD's role in international lending and money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
trading was supported by operations in almost every corner of the globe.
Following upon the success of the Toronto TD Centre, the bank was active in financing retail and commercial real estate projects across Canada. It was a partner in the Toronto Eaton Centre
Toronto Eaton Centre
The Toronto Eaton Centre is a large shopping mall and office complex in downtown Toronto, Ontario, Canada, named after the now-defunct Eaton's department store chain that once anchored it. In terms of the number of visitors, the shopping mall is Toronto's top tourist attraction, with around one...
and participated in such major developments as the Pacific Centre
Pacific Centre
Pacific Centre is a shopping mall located in Vancouver, British Columbia, Canada. It is operated by Cadillac Fairview Corporation. Based on the number of stores, many of which are underground, it is the largest mall in Downtown Vancouver with over 100 stores and services...
in Vancouver
Vancouver
Vancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
, Edmonton Centre
Edmonton City Centre
Edmonton City Centre is a shopping mall in downtown Edmonton, Alberta, Canada, across the street from Churchill Square.-History:In 1974, the City Centre Place shopping mall was completed within the larger Edmonton Centre development; TD Tower was added in 1976. In 1978, Oxford Tower and the...
, TD Square in Calgary
Calgary
Calgary is a city in the Province of Alberta, Canada. It is located in the south of the province, in an area of foothills and prairie, approximately east of the front ranges of the Canadian Rockies...
, and the Toronto-Dominion Bank Building in Halifax
Halifax Regional Municipality, Nova Scotia
Halifax Regional Municipality is the capital of the province of Nova Scotia, Canada. The Regional Municipality had a 2006 census population of 372,679, while the metropolitan area had a 2010 estimated population of 403,188, and the urban area of Halifax had a population of 282,924...
.
The bank easily weathered the economic downturn of the early 1980s, showing consistent (and sometimes remarkable) revenue increases from 1980 to 1984. By the late 1980s, however, the Bank was caught up in the debt crisis in the developing world caused by the recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
and the dramatic rise in interest rates. Significant loan losses were reported in 1987 and while the bank participated actively in debt restructuring initiatives, it also committed itself to more conservative lending practices.
Despite the difficult economic conditions and the negative impact on earnings, the 1980s and early 1990s saw many positive developments. Deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
began to break down the barriers between the various elements of the financial sector, particularly with the Bank Act of 1987. The bank moved into the discount brokerage
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
business in 1984 with the introduction of Green Line Investor Services and less than a decade later launched its full service brokerage, TD Evergreen. In 1987, Toronto Dominion Securities Inc. was established to provide corporate, treasury and investment banking services to corporate clients. In 1992 the Bank acquired the assets of a major trust company, Central Guaranty Trust and began the operation of TD Bank and Trust.
The 1990s saw TD responding swiftly to the challenges of the Internet and leading the way in e-banking. In 1996 the bank’s web site was created and TD Access: PC was launched, North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
’s first fully integrated banking and brokerage PC package. In 1998 Web Access was introduced and within a year e-banking services were available to a growing number of customers internationally. By the 21st century, the bank had positioned itself as a multi-channel e-commerce company.
The need to build TD into a major player in world financial markets prompted the Bank to acquire Waterhouse Investor Services Inc. in 1996 (and in a stroke more than double its size as a discount broker). The $8 billion purchase of Canada Trust
Canada Trust
CT Financial Services Inc. was a trust company that was founded in London, Ontario and later had its headquarters in Toronto, Ontario and operated in Canada through subsidiaries including Canada Trustco Mortgage Company and The Canada Trust Company...
was completed in 1999 and the merger took effect in February 2000.
Canada Trust brought a history as long and as rich as that of the TD Bank itself. It had grown out of the same need for basic financial services in a young Canada. Local businessmen in London, Ontario
London, Ontario
London is a city in Southwestern Ontario, Canada, situated along the Quebec City – Windsor Corridor. The city has a population of 352,395, and the metropolitan area has a population of 457,720, according to the 2006 Canadian census; the metro population in 2009 was estimated at 489,274. The city...
, in 1864, founded it, as the Huron & Erie Loan and Savings Company. But through mergers it could trace an ancestry to 1855 and the establishment of the Canada Permanent Mortgage Corporation by many of the same individuals who established the Bank of Toronto. It also had direct ties to Toronto General Trusts, Canada’s first trust company, incorporated in 1872. These institutions were instrumental in providing a pioneering farming community and residents of the growing towns across Canada with mortgage funds and other financial services.
Huron & Erie/Canada Trust established itself as a dynamic mortgage and trust company, first in Ontario, then across Canada through the late 19th and early 20th centuries. It was consistently aggressive in building its business and marketing its services and became an innovator in customer service. Following its merger with Canada Permanent in 1989, Canada Trust became the country’s sixth largest financial institution.
The Canada Trust acquisition gave the Bank new momentum, significantly expanded the breadth and depth of the Bank’s branch coverage, and enhanced TD's customer service commitment. Some have incorrectly referred to the new corporation as TD Canada Trust, though the latter only makes up the largest division. Toronto-Dominion Bank has now been operating under the brand Toronto-Dominion Bank Financial Group (TDBFG).
With the merger of Toronto-Dominion Bank and Canada Trust, the Competition Bureau required them to sell either their MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
or Visa
VISA (credit card)
Visa Inc. is an American multinational financial services corporation headquartered on 595 Market Street, Financial District in San Francisco, California, United States, although much of the company's staff is based in Foster City, California. It facilitates electronic funds transfers throughout...
business. Citibank Canada
Citibank Canada
Citibank Canada is a unit of Citigroup of New York City. The Canadian unit has been operating since 1954, with Canadian headquarters in Toronto...
bought TD Canada Trust
TD Canada Trust
TD Canada Trust is the personal, small business and commercial banking operation of the Toronto-Dominion Bank in Canada. TD Canada Trust offers a range of financial services and products to more than 10 million Canadian customers through more than 1,100 branches and 2,600 ATM Green Machines...
's MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
business and clients. TD began advertising its Visa cards under the corporate brand TD Visa.
In the 1990s, TD acquired US discount brokerage Waterhouse, renaming it "TD Waterhouse". In Canada, TD's own "Green Line" discount brokerage adopted the TD Waterhouse name.
TD Waterhouse
TD Waterhouse is the brand used for both Canadian and British brokerages within the TD Bank Financial Group. It was also formerly used for TD's American brokerage....
in an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, with shares priced at $35.28 CAD or $24 USD per share, earning $1.01 billion USD. In 2001, with the bursting of the Dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and lower trade volumes that brought down Waterhouse's share price, TD bought back that minority stake at $9 USD per share for only $378 million USD, earning a profit on the privatization. The acquisition was conditional on TD owning at least 90 per cent of Waterhouse's outstanding common shares, and it owned almost 89 per cent when the privatization was announced.
In 2003, TD held talks with E-Trade about merging TD Waterhouse with E-Trade, but they broke down over issues of control. On August 26, 2004, the bank announced a definitive agreement to acquire a 51 per cent interest in Banknorth Group, Inc. (now TD Banknorth
TD Banknorth
TD Banknorth, formerly just Banknorth, was a wholly owned subsidiary of the Toronto-Dominion Bank which conducted banking and insurance activities, primarily serving the northeastern area of the United States, headquartered in Portland, Maine...
), a bank in the US northeast. In 2005, TD announced an agreement to sell TD Waterhouse (USA) to Ameritrade; TD would own a 30 per cent stake in the newly created TD Ameritrade.
In late September 2009 and early October 2009, significant technical problems related to the integration of computer systems with the previously purchased Commerce Bank caused chaos for many customers as funds for scheduled direct deposits were not available and account balances were reported incorrectly. The bank's telephone lines experienced extremely high call volume and branches were crowded with customers looking for information.
In April 2010, TD Bank acquired three failed banks in the United States. It acquired certain assets and liabilities of Riverside National Bank of Florida, First Federal Bank of North Florida and AmericanFirst Bank from the Federal Deposit Insurance Corporation (FDIC).
On August 16, 2011, Toronto-Dominion and Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
announced an agreement for Toronto-Dominion to acquire MBNA Canada′s credit card business for $8.5 billion.
Mergers and acquisitions
- Bank of Toronto and the Dominion Bank 1955
- Central Guaranty Trust (acquisition of assets and branches) 1992
- Waterhouse Investor Services 1996
- Toronto-Dominion Bank and Canadian Imperial Bank of CommerceCanadian Imperial Bank of CommerceThe Canadian Imperial Bank of Commerce is one of Canada's chartered banks, fifth largest by deposits. The bank is headquartered at Commerce Court in Toronto, Ontario. CIBC's Institution Number is 010, and its SWIFT code is CIBCCATT....
announced merger however Paul MartinPaul MartinPaul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....
, then Finance Minister declared the merger void as not in the best interest of Canadians - Newcrest Capital 2000 for $224 million (75% stock and 25% cash)
- Canada Trustco 2000
- Stafford Trading and Letco Trading 2002
- Laurentian Bank retail branches (Ontario-BC) 2003
- Banknorth NATD BanknorthTD Banknorth, formerly just Banknorth, was a wholly owned subsidiary of the Toronto-Dominion Bank which conducted banking and insurance activities, primarily serving the northeastern area of the United States, headquartered in Portland, Maine...
2005 - Commerce BancorpCommerce BancorpTD Bank, N.A., is a national banking institution in the United States which offers banking, insurance, brokerage, and investment banking services in Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina,...
2007 (This created TD Bank, N.A. due to naming issues) - Riverside National Bank of Fort Pierce, Florida 2010
- The South Financial GroupSouth Financial GroupThe South Financial Group, originally known as Carolina First Corporation, was a bank holding company headquartered in Greenville, South Carolina. The South Financial Group began posting heavy losses in early 2008 and lost more than $1.7 billion before its sale in 2010 to TD Bank Financial Group of...
Inc. 2010 (Full Transition was completed in June 2011) - Chrysler Financial acquired in December 2010
Corporate governance
- W. Edmund ClarkW. Edmund ClarkWilliam Edmund "Ed" Clark is the President and Chief Executive Officer of TD Bank Financial Group , roles he held since December 20, 2002....
- President and CEO 2002–present - John M. ThompsonJohn Thompson (TD banker)John M. Thompson is the non-executive Chairman of the Board of Toronto-Dominion Bank Financial Corporation . He has held the position of Director at TDBFC since 1988 and has been chairman of the board since 2003....
- Non-executive Chairman 2003–present - Frank McKennaFrank McKennaFrancis Joseph "Frank" McKenna, PC, OC, ONB, QC is a Canadian businessman and former politician and diplomat. He is currently Deputy Chairman of the Toronto-Dominion Bank. He served as Canadian Ambassador to the United States from 2005 to 2006...
- Deputy Chairman
Current members of the board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of the company are: William Bennett, Hugh J. Bolton, John Bragg
John Bragg (businessman)
John L. Bragg, OC is a Canadian businessman and former Chancellor of Mount Allison University.Born in Springhill, Nova Scotia, he received a Bachelor of Commerce degree and a Bachelor of Education degree from Mount Allison University...
, W. Edmund Clark
W. Edmund Clark
William Edmund "Ed" Clark is the President and Chief Executive Officer of TD Bank Financial Group , roles he held since December 20, 2002....
, Wendy Dobson, Donna Hayes, Henry Ketcham, Pierre Lessard, Brian M. Levitt, Harold MacKay
Harold MacKay
Harold Hugh MacKay, OC, QC is a Canadian lawyer and corporate director.-Education:He received a Bachelor of Arts degree in 1960 from the University of Saskatchewan and a Bachelor of Laws degree in 1963 from Dalhousie University. He was called to the Bar of Saskatchewan in 1964...
, Irene R. Miller, Nadir H. Mohamed, Roger Phillips, Wilbur Prezzano, William Ryan, Helen Sinclair, Carole Taylor
Carole Taylor
Carole Taylor, OC is a Canadian journalist and former politician.She is currently serving as the Chancellor of Simon Fraser University since June 17, 2011. She previously served as British Columbia's Minister of Finance from 2005 until 2008 in the government of Liberal premier Gordon...
and John Thompson
John Thompson (TD banker)
John M. Thompson is the non-executive Chairman of the Board of Toronto-Dominion Bank Financial Corporation . He has held the position of Director at TDBFC since 1988 and has been chairman of the board since 2003....
.
The title of Toronto-Dominion Bank's top executive has changed over the years. Initially it was styled as Chairman. Later, it became Chief Executive Officer and one often carried additional responsibilities as Chairman of the Board, while the second-in-command was the President. After the merger of the Toronto-Dominion Bank and Canada Trust, while Charles Baillie was Chairman and Chief Executive Officer of the combined entity, Clark was appointed President and Chief Operating Officer which solidified him as the eventual successor to Baillie. Upon Baillie's retirement, Clark became the President and Chief Executive Officer, as the bank decided to appoint John M. Thompson as non-executive chairman.
Past Presidents:
- A. C. Ashforth, 1955–1960
- Allen T. LambertAllen LambertAllen Thomas Lambert, OC was a Canadian banker and former Chairman of the Toronto-Dominion Bank.-Junior to General Manager:...
, 1960–1972 - Richard M. ThomsonRichard M. ThomsonRichard Murray Thomson, is a Canadian banker. He earned a Bachelor of Arts and Science degree in Engineering from the University of Toronto and a Master of Business Administration from Harvard Business School....
, 1972–1978 - Allan J. Boyle, 1978–1981
- Robert W. Korthals, 1981–1995
- A. Charles BaillieA. Charles BaillieAlexander Charles Baillie, OC is the former CEO of TD Bank Financial Group; he served in this role until December, 2002.He served as the 12th Chancellor of Queen's University. He was appointed on July 1, 2002 and completed 2 consecutive three-year terms as Chancellor. He was succeeded by David A....
, 1995–2000
Past Chairmen
- B. S. Vanstone, 1955–1956
- A. C. Ashforth, 1956–1961
- Allen T. Lambert, 1961–1978
- Richard M. ThomsonRichard M. ThomsonRichard Murray Thomson, is a Canadian banker. He earned a Bachelor of Arts and Science degree in Engineering from the University of Toronto and a Master of Business Administration from Harvard Business School....
, 1978–1998 - A. Charles BaillieA. Charles BaillieAlexander Charles Baillie, OC is the former CEO of TD Bank Financial Group; he served in this role until December, 2002.He served as the 12th Chancellor of Queen's University. He was appointed on July 1, 2002 and completed 2 consecutive three-year terms as Chancellor. He was succeeded by David A....
, 1998–2003
Past top executives:
- Herbert S. WhiteHerbert S. WhiteHerbert S. White is Dean Emeritus and Distinguished Professor Emeritus, School of Library &Information Science, Indiana University, and Adjunct Professor, University of Arizona, Tucson...
, Executive Chairman (1960s-1970s) - Allen T. LambertAllen LambertAllen Thomas Lambert, OC was a Canadian banker and former Chairman of the Toronto-Dominion Bank.-Junior to General Manager:...
(1960–1972), Chairman and President - Richard M. ThomsonRichard M. ThomsonRichard Murray Thomson, is a Canadian banker. He earned a Bachelor of Arts and Science degree in Engineering from the University of Toronto and a Master of Business Administration from Harvard Business School....
(1972–1978), Chairman and CEO - Robert W. Korthals (????-1995)
- A. Charles BaillieA. Charles BaillieAlexander Charles Baillie, OC is the former CEO of TD Bank Financial Group; he served in this role until December, 2002.He served as the 12th Chancellor of Queen's University. He was appointed on July 1, 2002 and completed 2 consecutive three-year terms as Chancellor. He was succeeded by David A....
(1995–2002), Chairman and CEO - W. Edmund ClarkW. Edmund ClarkWilliam Edmund "Ed" Clark is the President and Chief Executive Officer of TD Bank Financial Group , roles he held since December 20, 2002....
, President and COO (2000–2002)
Membership
TDBFG is a member of the Canadian Bankers AssociationCanadian Bankers Association
The Canadian Bankers Association is a financial lobbying group that works on behalf of 52 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 267,000 employees. The CBA was organized in Montreal in 1891, making it one of Canada’s oldest interest...
(CBA) and registered member with the Canada Deposit Insurance Corporation
Canada Deposit Insurance Corporation
-External links:*** Official CDIC site*...
(CDIC), a Government of Canada agency insuring deposits at all of Canada's chartered banks. It is also a member of:
- InteracInteracInterac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
- NYCENYCEThe New York Currency Exchange is an interbank network connecting the ATMs of various financial institutions in the United States and Canada. NYCE also serves as an EFTPOS network for NYCE-linked ATM cards....
ATM network - Plus Network for VISA cards
- VISAVISA (credit card)Visa Inc. is an American multinational financial services corporation headquartered on 595 Market Street, Financial District in San Francisco, California, United States, although much of the company's staff is based in Foster City, California. It facilitates electronic funds transfers throughout...
International - Cipf
Branch locations
Canada- All provinces
- Northwest Territories
- Yukon
United States
- Connecticut
- Delaware
- Florida
- Maine
- Maryland
- Massachusetts
- New Jersey
- New Hampshire
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Vermont
- Virginia
- Washington, DC
External links
Official Websites- TD Asset Management
- TD Bank Financial Group
- TD Canada Trust
- TD Commercial Banking
- TD Insurance Home and Auto
- TD Securities
- TD Financing Services
- TD Ameritrade
- TD Ameritrade Holding Corporation
- TD Capital
- TD Bank, NA (Formerly Commerce Bank and TD Banknorth)
- TD Meloche Monnex
- TD Waterhouse Canada
TD stock profiles and quotes
- TD NYSE Stock Quote
- TD TSX Stock Quote
- Toronto-Dominion Bank stock performance chart from GStockGstockGStock is a distributed computing project formed in 2006 for stock market analysis. It is enabled by users that volunteer to download and run a software client and donate some idle capacity of their computer processing unit . The gathered computing power is used to search for an investment strategy...
- Yahoo! - The Toronto-Dominion Bank Company Profile
- TD Bank Locations