TORONTO, April 30,
2024 /CNW/ - TD Bank Group ("TD" or the "Bank")
(TSX: TD), (NYSE: TD), today announced that it has taken an initial
provision of US$450 million in
connection with discussions with one of its U.S. regulators,
related to previously disclosed regulatory and law enforcement
investigations of TD's U.S. Bank Secrecy Act (BSA)/anti-money
laundering (AML) program.
The Bank's regulatory and law enforcement discussions with three
U.S. regulators (including the regulator referenced in the
paragraph above) and the Department of Justice are ongoing. The
Bank anticipates additional monetary penalties. This provision does
not reflect the final aggregate amount of potential monetary
penalties or any non-monetary penalties, which are unknown and not
reliably estimable at this time.
TD's AML program was insufficient to effectively monitor,
detect, report, and respond to suspicious activity. Work has been
underway to remedy these deficiencies. TD is a strong institution
with the capital, liquidity, and capacity to fund the critical
effort currently underway to strengthen its AML program, invest in
the business, and continue to serve its customers and clients with
excellence.
The above-referenced provision of US$450
million can be found in the U.S. Report of Condition and
Income (the "Call Reports"), for the three-month period ended
March 31, 2024, filed earlier today
by the Bank's U.S. bank subsidiaries, TD Bank, N.A. and TD
Bank USA, with their U.S. regulators. The Call Reports are
filed quarterly and do not comprise the Bank's second fiscal
quarter consolidated financial results, which are scheduled to be
released on May 23, 2024.
Caution Regarding Forward-Looking
Statements
From time to time, the Bank (as defined in this document) makes
written and/or oral forward-looking statements, including in this
document, in other filings with Canadian regulators or the United States (U.S.) Securities and
Exchange Commission (SEC), and in other communications. In
addition, representatives of the Bank may make forward-looking
statements orally to analysts, investors, the media, and others.
All such statements are made pursuant to the "safe harbour"
provisions of, and are intended to be forward-looking statements
under, applicable Canadian and U.S. securities legislation,
including the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements include, but are not limited
to, statements made in this document, the Management's Discussion
and Analysis ("2023 MD&A") in the Bank's 2023 Annual Report
under the heading "Economic Summary and Outlook", under the
headings "Key Priorities for 2024" and "Operating Environment and
Outlook" for the Canadian Personal and Commercial Banking, U.S.
Retail, Wealth Management and Insurance, and Wholesale Banking
segments, and under the heading "2023 Accomplishments and Focus for
2024" for the Corporate segment, and in other statements regarding
the Bank's objectives and priorities for 2024 and beyond and
strategies to achieve them, the regulatory environment in which the
Bank operates, and the Bank's anticipated financial performance.
Forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "forecast",
"goal", "intend", "may", "outlook", "plan", "possible",
"potential", "predict", "project", "should", "target", "will", and
"would" and similar expressions or variations thereof, or the
negative thereof, but these terms are not the exclusive means of
identifying such statements.
By their very nature, these forward-looking statements require
the Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include general business
and economic conditions in the regions in which the Bank operates;
geopolitical risk; inflation, rising rates and recession;
regulatory oversight and compliance risk; the ability of the Bank
to execute on long-term strategies, shorter-term key strategic
priorities, including the successful completion of acquisitions and
dispositions and integration of acquisitions, the ability of the
Bank to achieve its financial or strategic objectives with respect
to its investments, business retention plans, and other strategic
plans; technology and cyber security risk (including cyber-attacks,
data security breaches or technology failures) on the Bank's
technologies, systems and networks, those of the Bank's customers
(including their own devices), and third parties providing services
to the Bank; model risk; fraud activity; insider risk;
the failure of third parties to comply with their obligations to
the Bank or its affiliates, including relating to the care and
control of information, and other risks arising from the Bank's use
of third parties; the impact of new and changes to, or application
of, current laws, rules and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance; increased competition from incumbents and new entrants
(including Fintechs and big technology competitors); shifts in
consumer attitudes and disruptive technology; environmental and
social risk (including climate change); exposure related to
significant litigation and regulatory matters; ability of the Bank
to attract, develop, and retain key talent; changes to the Bank's
credit ratings; changes in foreign exchange rates, interest rates,
credit spreads and equity prices; the interconnectivity of
Financial Institutions including existing and potential
international debt crises; increased funding costs and market
volatility due to market illiquidity and competition for funding;
Interbank Offered Rate (IBOR) transition risk; critical accounting
estimates and changes to accounting standards, policies, and
methods used by the Bank; the economic, financial, and other
impacts of pandemics; and the occurrence of natural and unnatural
catastrophic events and claims resulting from such events. The Bank
cautions that the preceding list is not exhaustive of all possible
risk factors and other factors could also adversely affect the
Bank's results. For more detailed information, please refer to the
"Risk Factors and Management" section of the 2023 MD&A, as may
be updated in subsequently filed quarterly reports to shareholders
and news releases (as applicable) related to any events or
transactions discussed under the heading "Significant Events" in
the relevant MD&A, which applicable releases may be found on
www.td.com. All such factors, as well as other uncertainties and
potential events, and the inherent uncertainty of forward-looking
statements, should be considered carefully when making decisions
with respect to the Bank. The Bank cautions readers not to place
undue reliance on the Bank's forward-looking statements.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2023
MD&A under the heading "Economic Summary and Outlook", under
the headings "Key Priorities for 2024" and "Operating Environment
and Outlook" for the Canadian Personal and Commercial Banking, U.S.
Retail, Wealth Management and Insurance, and Wholesale Banking
segments, and under the heading "2023 Accomplishments and Focus for
2024" for the Corporate segment, each as may be updated in
subsequently filed quarterly reports to shareholders.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives and priorities and anticipated financial performance as
at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. The Bank does not undertake to
update any forward-looking statements, whether written or oral,
that may be made from time to time by or on its behalf, except as
required under applicable law.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the sixth
largest bank in North America by assets and serves over
27.5 million customers in four key businesses operating in a number
of locations in financial centres around the globe: Canadian
Personal and Commercial Banking, including TD Canada Trust and TD
Auto Finance Canada; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in The Charles Schwab Corporation; Wealth
Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD
Insurance; and Wholesale Banking, including TD Securities and TD
Cowen. TD also ranks among the world's leading online financial
services firms, with more than 17 million active online and mobile
customers. TD had $1.91 trillion in
assets on January 31, 2024. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group