Although TD Bank has posted profits that are up 23%,CEO Ed Clark feels that the environment has soured.For instance,there is the Durbin amendment that we have to absorb.
The Durbin amendment restricts the fees that big banks operating in the U.S. can charge merchants for processing transactions made with their debit cards.The fees would be reduced from about 44 cents per swipe to 21 cents per swipe,resulting in a revenue loss to the banks of more than 16.1 billion dollars.The amendment is slated to go into force in October.
Tough environments actually widen the difference between excellent franchises and not so excellent franchises.We run this very simple model with longer hours;seven days a week;and spectacular service:you just relentlessly take market share that way.Our mortgage book is up 39% in the U.S.
On the other hand,there are a whole lot of political changes that,over time,will grind the banking system down;that,over time,will prevent banks from giving strong support to the economy.If you impose a form of tax-we're quite committed to the U.S.,but we shouldn't underestimate the grind that we're feeling right now.
TD Bank isn't focused on mergers and acquisitions.Taking market share has to be the core of your business strategy,but you add little parts you need by acquisition,Mr.Clark explained.
Toronto-Dominion Bank(TD)
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