Toronto-Dominion Bank is ramping up its U.S. asset-management business while doubling the number of advisers for wealthy American clients in an bid to accelerate profit.
Bloomberg News reports that Toronto-Dominion seeks to build on its March takeover of Epoch Investment Partners, a New York-based money manager, while increasing wealth management offerings for its bank customers from Maine to Florida, said Leo Salom, executive vice president of wealth management at the Toronto-based firm.
Efforts include doubling the number of private-wealth advisers to 300 in the next two and a half years, he said.
Canadian banks are bracing for a lending slowdown as over-indebted consumers slow their borrowing and demand for mortgages slips amid the prospect of rising interest rates.
Lenders are left looking for growth in other areas, such as providing customers investment advice and financial planning as well as managing their money - all for a fee.
U.S. banks including JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. have also put greater emphasis on their asset and wealth-management businesses as regulators step up capital requirements.
Toronto-Dominion posted record profit from wealth management in the quarter ended July 31, with earnings from its wealth business, including TD Ameritrade, climbing 19% percent to C$250m from a year-earlier.
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