Published reports from a Dec. 5 investor call indicate TD Bank will be narrowing its focus in the U.S. in order to focus efforts on a smaller group of rooftops.
TD Canada chief Tim Hockey told investors of the “80-20 rule” when it comes to working with the banks current fold of roughly 9,000 U.S. dealerships.
He meant that approximately 80 per cent of the dealers account for 20 per cent of the business and vice versa.
“So as a result, we expect that going forward, we'll have an actual smaller number of dealers as we concentrate our efforts from a servicing point of view on those dealers that really want partner up with us,” Hockey said.
“We expect to have slower originations over the next few quarters as we make that transition.”
According to F&I and Showroom, TD Bank had a record year in 2013, delivering $3.8 billion in adjusted earnings, up 11 per cent over last year.
Over the same period, auto insurance earnings were down 61 per cent. The bank points to severe weather-related events in Alberta and Toronto in 2013 and a rise in general insurance claims for the dip.
- with files from F&I and Showroom