TD Financial institution has taken a provision of $2.6bn in its third-quarter earnings because it prepares for financial penalties associated to a US investigation into its anti-money laundering programme, an anticipated loss that it plans to offset with a sale of greater than 40mn shares of dealer Charles Schwab.
The Canadian lender had already put aside $450mn in April, after US regulators, together with the Division of Justice, opened an investigation into deficiencies in its US division’s anti-money laundering programme. TD on Wednesday stated it anticipated a “world decision” to the matter by the tip of 2024.
TD stated the Schwab share sale would reduce its possession within the firm from 12.3 per cent to 10.1 per cent.
The Toronto-based lender, tenth largest within the US by belongings, has confronted a number of hurdles in recent times, together with a failed merger with Memphis-based First Horizon Financial institution.
