Top Long Pick Of 2016 - TD Bank
ValueBull Investor • 14 Comments
ValueBull Investor • 14 Comments
Thu, Dec. 1, 6:45 AM
Thu, Dec. 1, 6:45 AM
Wed, Nov. 30, 5:30 PM
Mon, Oct. 31, 9:21 AM
- Few details are available, but The Globe & Mail reports TD Bank (NYSE:TD) has offered to buy Richardson GMP for $600M.
- The brokerage and money manager has assets under administration of more than $27B managed by 198 advisory teams. TD earlier this fall had been reported as among those interested in a purchase.
Mon, Oct. 24, 6:11 AM
- As floated on Sunday, Scottrade has been sold to TD Ameritrade (NASDAQ:AMTD) for $4B. The deal will take place in two stages, with TD Bank (NYSE:TD) first buying Scottrade Bank for $1.3B in cash, and then Ameritrade purchasing Scottrade Financial Services for $4B, or $2.7B of stock and cash net of the proceeds of the bank sale.
- Ameritrade will issue $1B in new stock (28M shares) to Scottrade, and the $1.7B in cash will include $900M of its own money, $400M in new debt, and $400M raised by selling another 11M shares to TD Bank.
- Thanks to about $450M in combined annual expense synergies, Ameritrade expects 15-20% adjusted EPS accretion in years two and three following the close. Another $300M in longer-term cost savings are hoped for as well.
- A conference call is set for 8:30 ET.
Sun, Oct. 23, 8:57 PM
- TD Ameritrade (NASDAQ:AMTD) would acquire Scottrade's brokerage operations for about $2.7B in cash and stock, and TD Bank (NYSE:TD) would pick up Scottrade's banking business for $1.3B in cash, reports Bloomberg. TD Bank owns roughly 42% of Ameritrade.
- The acquisition would be the latest in an industry which has seen a good deal of consolidation of late as players deal with slowing volumes - Ameritrade saw 425K client trades per day in August, down 21% Y/Y, and E*Trade's 144K was off 20% (though it's a tough comparison given the massive volatility in August 2015).
- Scottrade had $1.04B in revenue in 2015, according to Wells Fargo's Christopher Harris. Revenue, however, has been flat since 2014. That, along with serious health issues for co-founder and CEO Rodger Riney could be pushing along the decision to sell.
- Previously: Analyst: TD Bank could held fund Ameritrade bid for Scottrade (Oct. 20)
Thu, Oct. 20, 11:59 AM
- According to Rob Sedran and team at CIBC, TD Bank (NYSE:TD) has the necessary regulatory capital to inject about $1.5B into its minority-owned TD Ameritrade (NASDAQ:AMTD) should it pursue a purchase of rival Scottrade.
- Scottrade has reportedly put itself on the block at somewhere in the $4B range, and a report today says TD and AMTD have teamed up to put in a joint bid.
- TD owns 42% of Ameritrade, and Sedran believes the lender would want to maintain that level in the event of a Scottrade purchase.
- It would be "strategically consistent" for TD to be involved in the buy, says Sedran, noting Scottrade's banking assets could be easily absorbed the direct brokerage is a business the lender knows well and with whom it has a strong partner, and in which material synergies could be expected.
Tue, Oct. 11, 11:39 AM
- A risk sharing proposal would likely have lenders paying some sort of a deductible when a mortgage goes bad - similar to what car drivers do in a car crash.
- The banks say mortgage defaults are so rare - 5 times lower than the U.S. by one measure - that making lenders share the risk is unnecessary and not worth the costs. “If it’s supposed to be something to improve the quality of underwriting," says the Canadian Bankers Association's Darren Hannah, "Well the quality of underwriting is already very strong.”
- The group - which includes TD, BMO, CM, RY, and BNS - holds its regular meetings with the country's finance department this week, and plans to let its feelings be known.
- Also of interest to Genworth (NYSE:GNW), whose Canadian mortgage insurance unit is the country's second-largest.
Tue, Sep. 13, 2:09 AM
- Despite the penalties imposed on Wells Fargo (NYSE:WFC), there is probably no broader problem in the U.S. banking industry over abusive sales practices, according to the head of the Consumer Financial Protection Bureau.
- Regulators fined the company a total of $185M last Thursday, while Moody's warned the episode would negatively affect the bank's debt. Wells paid another $5M to customers for creating more than 2M fake accounts.
- Related tickers: JPM, C, BAC, MS, USB, COF, FITB, TD, PNC, STI
Fri, Aug. 26, 7:12 AM
- The bull case for TD Bank (NYSE:TD) has been its outsized exposure the seemingly better-positioned U.S., says CIBC. It paid off in FQ3, as strong results south of the border drove the bank's earnings beat.
- "Much as we are heartened by the stronger U.S. performance, we expect and need better rom the Canadian business relative to its peers," says CIBC, downgrading TD to Sector Performer.
Thu, Aug. 25, 9:24 AM
- FQ3 adjusted net income of C$2.416B or C$1.24 per share vs. C$2.285B and C$1.20 one year ago.
- Canadian Retail net income of $1.5B vs. $1.6B a year ago, with a 3% revenue gain more than offset by higher insurance claims thanks to the Fort McMurray wildfire.
- U.S. Retail net income of $788M up from an adjusted $650M a year ago. Excluding investment in Ameritrade, net income of $663M up 19% Y/Y. Ameritrade contributed $125M, up 36% Y/Y.
- Wholesale banking net income of $302M up 26% Y/Y.
- Provisions of $556M or 0.38% of total loans down from $584M and $0.42 a quarter earlier.
- Previously: Toronto-Dominion Bank beats by C$0.06, beats on revenue (Aug. 25)
- TD flat premarket
Thu, Aug. 25, 6:47 AM
Thu, Aug. 25, 6:41 AM
Wed, Aug. 24, 5:30 PM
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Thu, Jun. 23, 12:42 PM
- TD Bank (TD +1.6%) now has a Canadian lawsuit to go along with at least one here in the U.S. over its coin-counting machines.
- The bank, of course, no longer has the machines in use and plans to remove them from all branches after a report showed them short-changing customers.
- The Canadian action alleges TD knew about the problems when it rolled the machines out to branches up north in 2013. It's seeking damages of up to $25M.