Q: In regards to TD - now that they have cancelled the First Horizon deal they will have an "excess capital" position. Is one possible use of that "excess" be to declare a special dividend. Is that even allowed by regulators - has a CDN bank ever declared a special dividend? What do you think they will do.
Thanks
Reg
Thanks
Reg
5i Research Answer:
Canadian banks do not have a record of special dividends. Regulators would need to approve. With the banking sector under seige we would not expect much here and TD is likely to just sit on any excess capital in the short term.