Leo Salom, the head of Toronto-Dominion Bank’s US franchise, expressed optimism for growth opportunities despite the ongoing constraint of a cap on its American retail-banking assets. Speaking at a conference in Toronto, Salom acknowledged a period of introspection and infrastructure review within the bank, while emphasizing the inherent strengths the division possesses.

For nearly a year, TD’s US division has been under regulatory orders not to expand, following a guilty plea in a wide-ranging anti-money-laundering (AML) investigation. This has resulted in an asset cap of $434 billion, which will remain in effect until regulators deem the bank's risk and compliance controls adequately remediated. In response, the firm has invested hundreds of millions of dollars in reforms, including hiring 40 leading AML experts, with most of these initiatives expected to be completed by the end of the current year. However, a specific timeline for lifting the asset cap remains unclear.

Despite these limitations, Salom outlined plans to enhance returns and strategically expand certain business lines within the US division. Key areas targeted for growth include credit-card lending and wealth-management services. The unit boasts a significant customer base, with 10 million retail clients and 700,000 small-business and commercial clients. Furthermore, with over $230 billion in deposits, it benefits from a stable, low-cost funding source. TD also maintains strong relationships with entrepreneurs, being a top provider of government-backed lending on the East Coast.

The bank has proactively created