Canada
promised to reduce billions of dollars'
And speed up growth, returning to victory. ”
(TD), who suspended his medium -term goals in December, now expects to achieve
(ROE) 13 percent, grow your own
(EPS) by six percent up to eight percent and reduce the increase in expenses to three percent to four percent in 2026 financial year.
By 2029, financial years are expected that ROE will increase to 16 percent, with EPS growth by seven percent to 10 percent. These goals are similar to those that TD had before he suspended that they made them in December last year, since he undertook a “wide and detailed” review of his strategies after he was fined about 3.1 billion US dollars and ordered the expansion of his expansion
In October, the Ministry of Justice and other United States regulators for the fact that they could not
Monitoring of money laundering
In his branches.
In general, the bank seeks to ensure a reduction in the cost of a point in the amount of 2 to 2.5 billion dollars. USA.
“I have been looking forward to this day for a long time,” said Raymond Chun Executive Director at the event of investors Day in Toronto on Monday. “We are returning to victory. And I am even more charged with respect to the possibilities in front of us. We have a huge opportunity for organic growth. ”
He said that TD “studied every part” of his business during the review and asked “complex questions” about creating opportunities for competition and resetting the cost base.
To speed up its growth, the bank wants to increase its digital sales, increase performance in its branches, add sales capabilities to key segments and accelerate the growth of payment income in its wealth, insurance and securities segments.
“In order to finance these investments and increase the efficiency coefficient, we must drop our cost and moderate costs,” Chun said. “This is an absolute priority.”
By 2026, the bank wants to “drive almost $ 1 billion” and another 1 billion US dollars to 2027 and 2028.
“These are all structural costs,” Chun said. “This is not about reducing your project or reducing marketing costs. All these things are returning at some point over time. ”
According to Chun, TD wants to save up to $ 450 million annually, since it migrates transactions for digital technologies, increases digital sales, increases the front performance and optimizes the size, hours, location and power of the branch.
He plans to use artificial intelligence to “simplify processes” and ensure saving half a billion dollars.
“We approve of the mortgage in the hours instead of days,” he said about the use of AI Bank. “We first approve of credit cards using data for millions of customers. We make reports in a matter of minutes or days. And we answer customers in just a few seconds, significantly reduce the time of call and waiting time. ”
In TD Insurance Chun said that the use of AI in claims management will only save $ 40 million and make the process easier and faster for customers.
“We also expect to save up to 400 million dollars a year thanks to initiatives on the technology and modernization of data,” he said.
In general, TD is aimed at an annual profit of $ 1 billion from AI.
Chun said that many organizations got into the Bandwagon AI recently, but TD was Ealy Adoper.
“We have been on this journey for seven years, and our knowledge was unusual,” he said.
With 2500 members in their team of artificial intelligence and does not depend on third -party suppliers, Chun said that the TD approach is different from its competitors.
The bank will also combine its suppliers as part of the “global labor strategy” in order to save from $ 200 million to $ 300 million.
Chun said that the bank appreciated its short -term capital needs, and plans to initiate a new ransom of shares in the amount of 6 billion US dollars in 2026, subject to the approval of regulatory authorities.
As part of his growth strategy, the general director said that TD will significantly invest in Frontline Distribution and expand specialized talents in their branches. Its goal is to convert branches from the center of transactions into “high consultations centers”, which can lead to more transactions.
But he also assured investors who corrected his program to combat money laundering (Aml), still remained its priority No. 1.
In addition to investment in technology and redesigning his processes to create a strong AML program, he said that TD also changes the “certain parts” of its culture.
“Listen, I am proud of our culture,” he said. “That's why I have been here for more than three decades. But there are some aspects that should absolutely change. Responsibility, at all levels, is not subject to discussion. ”
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