Q: How much of TD's $1.2T of deposits is in their US banking operations? And does this amount include their ownership in Schwab and other banks they have a stake in?
Is this something to be concerned about, given the potential for a further run on the banks. Thank you.
Is this something to be concerned about, given the potential for a further run on the banks. Thank you.
5i Research Answer:
We do not have a deposit breakdown but last year $18.4B of $49B revenue was US-based. Schwab is accounted for by the equity method so TD reflects its share of earnings but not deposits. TD today cancelled its purchase of US regional bank FHN, which takes a lot of short term risk off the table. We consider TD to be quite safe, at least in relative terms in a sector under siege.