RBC, TD Bank Go on Buying Spree to Bolster Slowing Profit

Royal Bank of Canada and Toronto- Dominion Bank (TD) announced purchases today of almost $20 billion in combined assets from U.S. companies to bolster profit ahead of a slowdown in domestic consumer lending.

Royal Bank, the nation’s largest lender, plans to buy Ally Financial Inc. (ALLY)’s Canadian auto-finance and deposit business in a deal that Ally said will generate $4.1 billion for the Detroit- based lender. Toronto-Dominion agreed to acquire Target Corp. (TGT)’s $5.9 billion U.S. credit-card portfolio for an amount equal to the gross value of the outstanding loans at the time the deal is completed, the firms said.

Canadian lenders, ranked as the soundest for the past five years by the World Economic Forum, are seeking to bolster domestic consumer-banking profits next year with household debt at record highs.

Read Full Article from Bloomberg

- Posted: 2012-10-23 15:53:58

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