Core Viewpoint - Toronto-Dominion Bank (TD Bank) offers a high dividend yield of 5.1%, significantly above the S&P 500 average of 1.2% and the average bank yield of 2.3%, making it an attractive option for high-yield bank investments [1] Group 1: Regulatory Issues - TD Bank's U.S. division was involved in money laundering activities, leading to significant regulatory scrutiny and accountability for the bank's internal control failures [3][4] - As a consequence, TD Bank has been placed under an asset cap in the U.S., restricting its ability to grow until it addresses regulatory concerns regarding its money laundering controls [5] - The bank is expected to face a challenging year in 2025 as it restructures its U.S. balance sheet to comply with the asset cap, which may negatively impact its financial performance [5][6] Group 2: Long-term Outlook - Despite current challenges, TD Bank's core Canadian business remains strong and unaffected by the U.S. issues, suggesting potential for recovery and growth beyond 2025 [7] - The bank's long-term growth engine, previously expected to be its U.S. business, will likely experience slower growth until regulatory issues are resolved, but the stock's current low valuation presents a buying opportunity for long-term investors [6][10] - The bank's management increased the dividend by 3% at the end of fiscal 2024, indicating confidence in its ability to maintain dividend payments despite regulatory challenges [9] Group 3: Investment Considerations - TD Bank represents a risk/reward scenario, where investors willing to buy during a downturn may benefit from a historically high dividend yield while waiting for the bank to navigate its regulatory issues [8][10] - The current situation may deter conservative investors, but those with a long-term perspective could find this an opportune time to invest, as the bank is expected to recover and return to growth [11]

Company Performance - Toronto-Dominion Bank (TD) closed at $57.92, reflecting a +0.8% change from the previous day, outperforming the S&P 500's gain of 0.36% [1] - Over the past month, TD shares have increased by 6.05%, while the Finance sector and S&P 500 gained 5.23% and 2.11%, respectively [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $1.38, a decrease of 6.12% from the same quarter last year, with projected quarterly revenue of $10.42 billion, up 3.47% year-over-year [2] - For the entire fiscal year, earnings are projected at $5.52 per share and revenue at $42.51 billion, indicating a decline of 3.83% in earnings and an increase of 1.28% in revenue compared to the previous year [3] Analyst Revisions and Outlook - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which assesses estimate changes, currently ranks TD at 4 (Sell), with a recent downward shift of 0.87% in the EPS estimate [6] Valuation Metrics - TD's Forward P/E ratio stands at 10.4, which is higher than the industry average of 8.83, and its PEG ratio is 1.84 compared to the industry average of 0.96 [7] Industry Context - The Banks - Foreign industry, part of the Finance sector, has a Zacks Industry Rank of 159, placing it in the bottom 37% of over 250 industries [8]

Group 1 - Toronto-Dominion Bank (TD) stock closed at $57.07, reflecting a -0.52% change from the previous trading day, underperforming compared to the S&P 500's loss of 0.51% [1] - Over the last month, TD shares have increased by 8%, outperforming the Finance sector's gain of 5.73% and the S&P 500's gain of 2.87% [1] - Upcoming earnings disclosure is expected to show an EPS of $1.38, a 6.12% decline year-over-year, with quarterly revenue anticipated at $10.42 billion, up 3.47% from the previous year [2] Group 2 - For the entire year, earnings are forecasted at $5.54 per share and revenue at $42.51 billion, indicating a -3.48% change in earnings and a +1.28% change in revenue compared to the previous year [3] - Recent analyst estimate revisions suggest a favorable outlook on TD's business health and profitability [4] - The Zacks Rank system indicates that TD currently holds a rank of 4 (Sell), with a recent 0.51% decrease in the EPS estimate over the last 30 days [6] Group 3 - TD's Forward P/E ratio is 10.35, which is a premium compared to the industry's average Forward P/E of 9.04 [7] - The PEG ratio for TD is 1.83, while the average PEG ratio for the Banks - Foreign industry is 0.99 [7] - The Banks - Foreign industry is ranked 159 in the Zacks Industry Rank, placing it in the bottom 37% of over 250 industries [8]

Key Appointments - TD Bank Group announced two key appointments in financial crime risk management roles, effective January 23 [1] - Jacqueline (Jackie) Sanjuas, previously TD Bank Group's U S Bank Secrecy Act officer, is now the global head of financial crime risk management, succeeding Herb Mazariegos who will leave the company [2] - Stephen Joyce, vice president of financial crime risk management, transformation delivery and enablement, was appointed interim head of financial crime risk management for TD's Canadian and international operations (non-U S ) [4] Leadership Transition - TD Bank Group accelerated its CEO transition, with Chief Operating Officer Raymond Chun set to be appointed group president and CEO on February 1, instead of the previously announced date of April 10 [5] - Bharat Masrani, the outgoing president and CEO, took "full responsibility" for the AML challenges faced by the bank [5] Regulatory and Compliance Issues - TD Bank Group and its U S subsidiaries consented to orders and entered into plea agreements with U S regulators and authorities in October, related to investigations of its Bank Secrecy Act and anti-money laundering (AML) compliance programs [6] - The U S Department of Justice highlighted "long-term, pervasive and systemic deficiencies" in TD Bank's AML program between January 2014 and October 2023, with the bank failing to take appropriate remedial action [6] - TD Bank agreed to a "historic penalty," a four-year monitor to oversee remedial measures, and additional accountability and data governance reviews as part of the settlement with the U S Department of the Treasury [7] Background of Appointees - Jacqueline Sanjuas joined TD Bank Group in January 2024 after 19 years at Citi, where she served as managing director and chief compliance officer of AML and BSA officer [3] - Herb Mazariegos, who is leaving TD Bank Group, joined the company in November 2023 [2]

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Company Overview - Toronto-Dominion Bank (TD) has been a subject of discussion due to its anti-money laundering (AML) fines and Q4 earnings reported on December 5th, 2024 [1] - TD is considered a solid Canadian bank with reliable returns and growth potential, making it an attractive investment for dividend investors [1] Analyst's Perspective - The analyst previously rated TD as a 'buy' due to its strong fundamentals and growth prospects [1] - The analyst holds a beneficial long position in TD shares through stock ownership, options, or other derivatives [2] Industry Context - Canadian banks like TD and BMO are favored by investors for their stability and consistent performance in the financial markets [1]

TD Bank's AML Remediation and Strategic Review - TD Bank faced a significant penalty of $3 09 billion due to AML shortcomings, leading to a plea agreement with the US Department of Justice [1][3] - The bank is reducing its US retail assets by approximately 10% to comply with the $434 billion limit set by the OCC [5] - TD has strengthened its AML staff and hired in risk and audit areas, aiming to meet regulatory expectations [5][6] - The bank appointed a new head of US financial crimes and risk management and reorganized its AML team in the US [6] - TD plans to integrate external benchmarking to ensure appropriate resource funding and support for AML efforts [6][7] Strategic Review and Capital Allocation - TD suspended its medium-term growth targets and initiated a comprehensive strategic review due to rising expenses [2] - The bank is considering offloading some loan portfolios and repositioning bond holdings to optimize return on equity in the US [8] - TD is reviewing its ownership stake in Charles Schwab, having reduced its stake from 12 3% to 10 1% last year [9][11] - The bank clarified that its deposit agreement with Schwab will continue regardless of its investment decisions [10][11] Industry Context and Legal Issues - Deutsche Bank's broker-dealer subsidiary was fined $4 million by the SEC for failing to file Suspicious Activity Reports promptly [14] - Bank of America received a cease-and-desist order from the OCC to address deficiencies in its BSA/AML and sanctions compliance programs [15] TD's Financial Performance - TD shares lost 2 3% over the past six months, underperforming the industry's 4 8% growth [12] - The bank currently carries a Zacks Rank 4 (Sell) [13]

NEW YORK, Dec. 23, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of The Toronto-Dominion Bank (NYSE: TD).Shareholders who purchased shares of TD during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.CONTACT US HERE:https://securitiesclasslaw.com/securities/the-toronto-dominion-bank-loss-submission-form/?id=117762&from=4CLASS PERIOD: Februar ...

NEW YORK, Dec. 20, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against The Toronto-Dominion Bank ("TD Bank" or the "Company") (NYSE: TD). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.The class action concerns whether TD Bank and certain of its office ...

SAN DIEGO, Dec. 20, 2024 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of The Toronto-Dominion Bank ("TD Bank") (NYSE: TD) securities between March 7, 2022 and October 9, 2024, both dates inclusive (the "Class Period"), have until this upcoming Monday, December 23, 2024 to seek appointment as lead plaintiff of the TD Bank class action lawsuit. Captioned Gonzalez v. The Toronto-Dominion Bank, No. 24-cv-09445 (S.D.N.Y.), the TD Bank class action lawsui ...