The Toronto-Dominion Bank
Diversified BankingFounded 1955- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
The Toronto-Dominion Bank
Company History
Founded 1955 in Toronto, Ontario, Canada
Last reviewed: 2025-07-15 · By Swet Parvadiya
CAD $67.78 billion in FY2025 revenue and $2.0 trillion in total assets make TD Bank Group the second-largest bank in Canada, but a $3 billion AML fine and a $434 billion asset cap on US operations have created the most significant crisis in the bank's 170-year history. Reported net income of CAD $20.54 billion includes an $8.98 billion gain from the Schwab sale, masking underlying profitability pressure from permanent compliance costs and restricted US growth. On an adjusted basis, net income was CAD $15.03 billion with a 12.9% return on common equity — solid but below the 15% target that management had set before the AML crisis. The market values TD at approximately CAD $155 billion, but the stock trades at a 1.35 price-to-book ratio, a discount to RBC and TD's historical average, reflecting investor concern about the duration of the asset cap and the permanent cost of compliance.
The Bank of Toronto was established in 1855 by a group of Toronto millers and merchants to serve Canada's growing grain industry. The bank provided insurance and commodities exchange services and built a branch network across Ontario and into Quebec. By 1954, the bank had 161 branches and was one of Canada's leading financial institutions. The bank's conservative approach to lending and strong relationships with agricultural and commercial clients established a foundation of stability that would characterize the merged Toronto-Dominion Bank.
The Dominion Bank was chartered by the Canadian Parliament in 1869 to help finance nation-building projects in the young Dominion of Canada. Backed by industrialists and financiers, the bank opened its first branch in 1871 and expanded rapidly across central Canada. The bank established international operations in London (1911) and New York (1919), making it one of Canada's first banks with a global footprint. By 1954, Dominion Bank had grown to become a major competitor to the Bank of Toronto, setting the stage for the 1955 merger.
The Bank of Toronto was founded by a consortium of millers and merchants in Toronto, with initial capital of CAD $200,000, to serve Canada's emerging grain industry.
The Dominion Bank was chartered by Canadian Parliament with backing from industrialists and financiers, opening its first branch in 1871 with initial capital of CAD $500,000.
On February 1, 1955, the Bank of Toronto and The Dominion Bank merged to form the Toronto-Dominion Bank with 499 branches, 5,500 employees, and combined assets of CAD $1.1 billion.
The TD Shield was introduced as the official corporate identity, replacing the separate branding of the predecessor banks and establishing the visual identity that remains today.
TD acquired Central Guaranty Trust, expanding its retail banking and trust services footprint in Canada.
TD purchased Waterhouse Investor Services for approximately $1.1 billion, establishing a major presence in discount brokerage and online investing.
TD acquired Canada Trust for CAD $8 billion, creating the TD Canada Trust retail banking brand and adding approximately 4 million customers and 500 branches.
TD acquired Commerce Bancorp for $8.5 billion, establishing a major US retail banking presence in the Northeast with the 'America's Most Convenient Bank' branding.
TD acquired South Financial Group, expanding its US presence in the Carolinas and Florida.
TD acquired Chrysler Financial, establishing TD Auto Finance as a major US auto lending platform.
TD contributed its US brokerage business to Charles Schwab in exchange for a 13.4% stake in the combined entity, valued at approximately $13 billion.
TD announced the $13.4 billion acquisition of First Horizon Corporation, which would have created a top-6 US bank with 1,560 branches across 22 states.
On May 4, 2023, TD terminated the First Horizon merger due to regulatory refusal, paying $225 million in fees. On March 1, 2023, TD completed the $1.3 billion acquisition of Cowen Inc.
In October 2024, TD pleaded guilty to criminal BSA violations and conspiracy to commit money laundering, agreeing to pay over $3 billion in fines and accepting a $434 billion asset cap on US operations.
On February 12, 2025, TD completed the sale of its entire 10.1% Schwab stake for approximately $14.6 billion. Raymond Chun became CEO on February 1, 2025, replacing Bharat Masrani.
To create a nationwide Canadian retail banking franchise by acquiring Canada Trust, a trust company known for extended hours and customer-friendly service. The deal added approximately 4 million customers and 500 branches.
To establish a major US retail banking presence by acquiring Commerce Bancorp, which operated under the 'America's Most Convenient Bank' brand with extended hours and a customer-centric model.
To accelerate TD Securities' US growth strategy by acquiring Cowen, a leading independent dealer with a premier US equities business and diversified investment bank. Added 1,700 employees and established TD Cowen.
To create a top-6 US bank with 1,560 branches across 22 states, adding approximately $80 billion in assets and expanding into the fast-growing US Southeast.