TORONTO – Toronto-Dominion Bank is drawing attention from investors after the Canadian bank – the parent of the U.S.-based TD Bank – recently performed better than its bigger rival, Royal Bank of Canada, according to a report by Bloomberg News.
Toronto-Dominion’s price-earnings ratio rose to 13.6 on July 22, or 4.3 percent more than the valuation on an index of Canada’s six biggest banks, Bloomberg said. That was the biggest premium in almost four years, according to data compiled by Bloomberg.
“The market is starting to recognize that TD has a strong retail banking operation in Canada but also a good franchise in the U.S. already established,” Mathieu Roy, a money manager at Louisbourg Investments Inc. in Moncton, New Brunswick, told Bloomberg. “It’s building on that franchise, versus the other banks still looking to find their way.”
The company posted record profits from its domestic bank last year and increased profit by 30 percent at its U.S. banking business in the most recent quarter.
Royal Bank of Canada sold its U.S. consumer bank in June after the unit posted 11 straight quarterly losses, Bloomberg said.
