Analyzing only the information below, would TD Bank be a good company to invest in or not? explain.

1.1. Summary of Financial Statements

The Toronto-Dominion Bank, commonly known as TD Bank, is a leading Canadian banking and financial services institution headquartered in Toronto, Ontario. It was formed on February 1, 1955, through the merger of two historic banks: The Bank of Toronto, established in 1855, and The Dominion Bank, founded in 1869. As one of Canada's Big Five banks, alongside the Canadian Imperial Bank of Commerce, TD is recognized as the largest bank in Canada by total assets and market capitalization as of 2021. It ranks among the top ten banks in North America and is the 23rd largest globally. In 2019, the Financial Stability Board designated TD as a global systemically important bank (Carinci, 2021).

Globally, TD Bank Group employs over 89,000 individuals and serves more than 26 million customers. In Canada, its TD Canada Trust subsidiary caters to over 11 million clients through more than 1,091 branches. In the United States, TD operates under its subsidiary TD Bank, N.A., which was formed from the merger of TD Banknorth and Commerce Bank. With over 1,200 locations across 15 states and the District of Columbia, it provides services to more than 6.5 million customers in the U.S. (Carinci, 2021).

In 2023, TD Bank showcased the strengths of its diversified business model, allowing the bank to make significant strides in serving its stakeholders, expanding its customer base, and bolstering its competitive edge through investment in new capabilities. TD emerged as Canada's largest digital bank, surpassing 10 million customers at TD Bank, America's Most Convenient Bank.

The year was marked by substantial change, characterized by climbing inflation and rapid interest rate hikes from central banks. These shifts presented new challenges for households and businesses alike, while technology continued to disrupt traditional industries (Roberts, 2023). In response to these complexities, TD Bank reaffirmed its commitment to helping customers navigate through uncertainty and achieve their financial objectives. In its Canadian Personal Banking and Commercial Banking segment, TD focused on driving growth in critical areas essential for future success.

TD Bank demonstrated a robust commitment to supporting small businesses and enhancing its service offerings across various sectors, solidifying its position as a leader in the Canadian banking landscape. As the Canada Emergency Business Account (CEBA) repayment deadline approached, TD proactively assisted its small business clients, showcasing its dedication to customer service. TD Bank's branding efforts paid off as it emerged as Canada's most valuable brand in 2023. In the United States, known as "America's Most Convenient Bank," TD delivered stability during a turbulent banking crisis, reinforcing customer trust across its extensive Maine-to-Florida footprint. The bank remained a leader in Small Business Administration (SBA) lending for the seventh consecutive year within its region and ranked second nationally, underscoring its significant impact on small businesses (Cormack-Loyd, 2024).

Despite these successes, TD faced challenges regarding its anti-money laundering controls, which were identified during the year. The bank is actively addressing these shortcomings to ensure compliance and enhance operational integrity. To understand the case, a former TD Bank employee in Florida is facing allegations of accepting USD 200 bribes to facilitate the transfer of millions of dollars to Colombia, as detailed in court documents filed in the U.S. District Court for the District of New Jersey. The individual is accused of assisting criminals in moving money to Colombia, reportedly providing one co-conspirator with 28 debit cards and earning USD 5,600 in bribes. It's claimed that he charged lower rates for his illicit services compared to other clients. As a result, TD Bank may face fines of up to USD 4 billion (Bloomberg News, 2024).

In its latest quarterly report, TD Bank Group announced a loss of CAD 181 million, significantly impacted by charges related to ongoing investigations into its anti-money laundering program in the U.S. The bank reported a loss of 14 cents per diluted share for the quarter ending July 31, contrasting sharply with a profit of CAD 2.88 billion or CAD 1.53 per diluted share from the same period last year. The third-quarter results included a substantial CAD 3.57 billion provision linked to the investigations regarding the bank's anti-money laundering practices in the U.S. On an adjusted basis, TD reported earnings of CAD 2.05 per diluted share for this quarter, compared to an adjusted profit of CAD 1.95 per diluted share in the same quarter last year. Total revenue for the quarter reached CAD 14.18 billion, an increase from CAD 12.91 billion in the previous year. Additionally, the bank's provision for credit losses rose to CAD 1.07 billion, up from CAD 766 million during the same quarter last year (The Canadian Press, 2024).

The Bank has strategically embedded its sustainability priorities within its core business framework. Recognizing the urgent need for a transition to a low-carbon economy, the Bank leverages its extensive expertise, resources, and financing capabilities to assist clients in adapting to evolving market expectations. Through a diverse array of products, services, and reliable advice, the institution is dedicated to empowering businesses to contribute positively to a more sustainable future. This year, the Bank has taken significant strides in its sustainability journey by launching a new Sustainable and Decarbonization Finance Target. This ambitious initiative aims to mobilize CAD 500 billion by 2030 through various financial activities as well as the Bank's own investments. Such efforts underscore the institution's commitment to supporting customers, clients, and communities in their sustainability endeavors. (Statista, 2024).

The Bank's leadership in sustainability proudly maintains its position on the Dow Jones Sustainability Index for the ninth consecutive year, distinguishing itself as the only North American-based bank included in this year's World Index. This recognition highlights the Bank's unwavering dedication to responsible practices and sustainable growth. Additionally, through the TD Ready Commitment, the Bank actively invests in programs designed to foster prosperity within the communities it serves. With a target of contributing CAD 1 billion by 2030, this year alone saw an impressive CAD 157 million directed towards community initiatives, non-profit organizations, and other efforts aimed at creating opportunities for individuals to thrive in an ever-changing world.

In 2023, TD Bank Group reported solid financial performance, continuing its trend of stability and growth. The bank experienced growth in key areas such as net income, driven by strong lending activities and a diverse revenue base. reporting impressive earnings of CAD 10.782 million, a decrease of CAD 6,647 million, or 38%, compared to the previous year. This decline was attributed to increased non-interest expenses, the effects of the terminated capital hedging strategy related to the First Horizon acquisition, and higher provisions for credit losses (PCL), although it was partially offset by rising revenues. On an adjusted basis, the net income for the year stood at $15,143 million, reflecting a decrease of CAD 282 million, or 2%, from last year. The reported return on equity (ROE) for the year was 10.1%, down from 18.0% the previous year, while the adjusted ROE was 14.4%, compared to 15.9% last year (TD Bank Group, 2023).

In 2023, TD Bank accelerated its digital transformation initiatives to further improve customer experiences. A notable example is the launch of TD Active Trader, a next-generation trading platform that exemplifies the bank's commitment to providing advanced tools for clients engaged in trading activities. Additionally, initiatives such as EasyApply have streamlined the account opening process, making it more accessible and user-friendly for new customers. These advancements reflect TD Bank's dedication to integrating technology into its services while enhancing overall customer satisfaction???a crucial factor in today's digital age.

In conclusion, TD Bank Group's performance in 2023 highlights its financial strength and strategic focus on innovation and sustainability. Through a diversified business model and significant investments in digital transformation and community engagement, the bank not only solidifies its competitive position but also contributes positively to societal goals. As it continues on this trajectory, TD Bank sets an example for other institutions striving for both financial success and corporate responsibility in today's rapidly changing world.

2.1. Analysis of Cash Flow Statement

A cash flow statement provides critical insights into a company's financial health by detailing the inflow and outflow of cash over a specific period. Understanding these cash flows helps stakeholders assess the company's liquidity, financial flexibility, and overall performance. For this analysis, TD Bank's cash flow statements for fiscal years 2022 and 2023 were examined, zeroing in on the bank's operating, financing, and investing activities.

2.1.1. Cash Flows from Operating Activities

The company reported a significant net cash outflow from operating activities of -$65,302 in 2023 compared to a cash inflow of $38,949in 2022. This negative cash flow indicates severe operational challenges and a potential liquidity crisis. This drastic change can be attributed to several factors:

1. Net income decline: Net income fell from CAD 17,429 in 2022 to CAD 10,782 million in 2023. This significant decline suggests worsening profitability, possibly due to increased expenses.
2. Increased Provision for Credit Losses: The provision for credit losses surged to CAD 2,933 million from CAD 1,067 million. This sharp increase indicates heightened concerns over loan defaults, reflecting a potential downturn in the economy or changes in credit policies, which is a concern for future cash inflows.
3. Significant changes in working capital:
   1. Loans Net of Securitization and Sales: Decreased by CAD 41,697 million (from CAD -109,463 million to CAD -67,766 million) indicates a reduction in lending activity or increased repayments, negatively affecting cash flows.
   2. Deposits: There was a substantial decrease in deposits by CAD 131,246 million (from CAD 105,759 million to CAD -25,487 million). This substantial outflow might suggest customers withdrawing funds, a shift to other investments, or increased competition for deposits, impacting cash available for operations.
   3. Derivatives and Securities: Variability in trading and securities activities, reflected by changes in securities sold under repurchase agreements and securities sold short, further complicated cash flow stability.

The reported net income for fiscal year 2022 was CAD 17,429 million showing an increase of CAD 3,131 million, or 22% compared to 2021. The increase reflects higher revenues due to a net gain from the mitigation of interest rate volatility, the closing capital on the First Horizon acquisition, and a gain on sale of Schwab shares which was partially offset by higher non-interest expenses and higher PCL (TD Bank Group, 2023b). In contrast, the reported earnings in 2023 were CAD 2.9 billion, down 57% compared with the fourth quarter of 2022 and adjusted earnings were CAD 3.5 billion, down 14% (TD Bank Group, 2023c).

Overall, the operating cash flow illustrates a considerable liquidity strain, primarily driven by decreased earnings and increased risk provisioning.

2.1.2. Cash Flows from Financing Activities

In the financing activities section, the cash outflow increased to CAD -12,847 million in 2023 from CAD -4,819 million in 2022. This increase indicates higher capital returns to shareholders amid operational difficulties. Key components influencing this include:

1. Redemption or Repurchase of Subordinated Notes and Debentures: Increased outflow from CAD 6 million to CAD -1,716 million. This change indicates a more aggressive strategy in managing debt, possibly due to refinancing or restructuring efforts.
2. Common Shares Issued, Net: Decreased slightly from CAD 108 million to CAD 74 million. This suggests less equity financing activity, possibly reflecting a strategic decision to limit dilution or uncertain market conditions.
3. Repurchase of Common Shares: Increased repurchases from CAD -2,195 million to CAD -4,285 million signal a strategic move to return capital to shareholders, potentially at the expense of liquidity.
4. Dividends Paid: A slight decrease in dividends from CAD -6,665 million to CAD -5,825 million. This reduction may reflect caution in cash management, given the declining net income and cash flow from operations.
5. Treasury Shares: The purchase of treasury shares was almost offset by sales, resulting in negligible net cash flow from this activity.

Overall, financing activities reveal a commitment to shareholder returns but highlight challenges in maintaining cash reserves.

2.1.3. Cash Flows from Investing Activities

Investing activities showed a robust cash inflow of CAD 76,226 million in 2023, contrasting sharply with an outflow of CAD -31,895 million in 2022. This substantial inflow suggests a shift towards more conservative investment management and a focus on liquidity, counterbalancing the negative trends in operating activities. The key drivers of this change include:

1. Interest-Bearing Deposits: A notable increase from CAD 30,455 million to CAD 41,446 million in cash from interest-bearing deposits with banks reflects a strategic move to manage liquidity effectively.
2. Debt Securities Transactions: Significant activity in debt securities, including net proceeds from maturities and sales, contributed positively, indicating active portfolio management. The significant change in purchases versus maturities indicates a shift in investment strategy, possibly towards more stable assets amid market volatility.
   1. Purchases: Increased by CAD 122,573 million (from CAD -149,560 million to CAD -26,987 million).
   2. Proceeds from Maturities: Decreased by CAD 15,900 (from CAD 68,719 million to CAD 52,819 million).
3. Divestitures and Acquisitions: Cash flows from divestitures and acquisitions also contributed positively in 2023 compared to the previous year.

The increase in cash from investing activities highlights a proactive strategy in managing financial assets, despite challenges in operating cash flows.

2.1.4. Overall Cash Position

The overall net decrease in cash and due from banks of CAD -1,835 million in 2023, compared to an increase of CAD 2,625 million in 2022, reflects a tightening liquidity situation. Despite higher cash inflows from investing activities, the stark declines in operating and financing activities suggest a need for strategic reassessment.

2.1.5. Supplementary Disclosures

Supplementary disclosures highlight substantial amounts paid in interest (CAD 48,179 million) compared to interest received (CAD 76,646 million), which indicates the company's active management of its debt portfolio. Additionally, tax payments remained significant, illustrating the tax burden even amid decreased profitability.

2.1.6. Summary of Analysis

The cash flow statement for the years ended October 31, 2023, and 2022, underscores significant challenges facing the company. The sharp decline in cash flows from operating activities, alongside increased provisions for credit losses and reduced net income, raises concerns about long-term sustainability. Although cash flows from investing activities showed resilience and strength, the overall cash position is deteriorating. The company must strategically enhance its operating cash flow and manage financing activities to ensure future liquidity and stability.

2.2. Ratio Analysis

As one of Canada's leading financial institutions, TD Bank plays a pivotal role in the banking sector, serving millions of customers with a wide range of financial services. To understand the bank's financial health and operational efficiency over the years, analyzing key financial ratios is essential. These ratios provide valuable insights into various aspects of the bank's performance, including its liquidity, asset management efficiency, leverage, profitability, and market valuation.

Important ratios such as the price-to-earnings (PE) ratio, debt-to-equity ratio, times interest earned (TIE), return on equity (ROE), and current ratio from 2019 to 2023 were examined. In the end, these measures help stakeholders and investors make well-informed choices about how to interact with TD by providing distinct insights into the bank's operational efficiency and financial health.

Table 1.

The Toronto-Dominion Bank Ratios and Metrics

Fiscal Year	2023	2022	2021	2020	2019
Current Ratio	1.05	1.04	0.95	0.87	1.06
Total Asset Turnover	0.03	0.03	0.03	0.02	0.03
Debt to Equity Ratio	3.93	3.47	3.16	3.75	3.10
Times Interest Earned (TIE)	1.21	2.27	3.62	2.05	1.64
Return on Equity (ROE)	9.65%	16.50%	14.64%	12.99%	13.93%
Price to Earnings Ratio (PE)	13.18	8.37	10.17	7.69	9.61

2.2.1. Current Ratio

This ratio measures a company's ability to pay short-term obligations with its short-term assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally a positive sign of liquidity. For a bank, a healthy current ratio ensures that it can meet withdrawal demands and other short-term liabilities (Vipond, 2024).

In 2019, TD Bank presented a ratio above 1.06 indicating a strong liquidity position, allowing the bank to comfortably cover its obligations. In 2020, the current ratio was 0.87, a significant drop compared to 2019. This indicates that TD Bank had fewer current assets than current liabilities, raising concerns about its ability to meet short-term obligations. In 2021, a slight recovery was observed but was still below 1, indicating that while the bank was moving in the right direction, it still faced challenges in covering its short-term debts. Finally, in 2022, the company achieved a ratio of 1.04 which was a positive sign that TD Bank improved its liquidity position, meaning it had sufficient current assets to cover its liabilities. In 2023, with a ratio of 1.05, the TD showed continued stability in liquidity, reflecting effective management of current assets and liabilities.

TD Bank's improvement in the current ratio from negative values to above 1 over the five years reflects a positive sign toward greater financial stability and liquidity management. This progress indicates a stronger position to meet short-term obligations and adapt to changing economic conditions.

The slight fluctuations in the current ratios for TD Bank from 2019 to 2023 reflect a period of relative stability in the bank's short-term liquidity. Despite a dip in 2020 and 2021, the ratio improved in 2022 and 2023, indicating ongoing efforts to enhance liquidity management. This aligns with TD Bank's broader financial strategy, as highlighted in its 2023 Annual Report, where it reported a Common Equity Tier 1 Ratio of 14.4%, well above regulatory requirements (TD Bank Group, 2023-b).

2.2.2. Total Asset Turnover

This ratio shows how efficiently a company uses its assets to generate revenue. A higher total asset turnover indicates better efficiency. For banks, this ratio can reflect how well the bank is utilizing its assets to generate income (Bragg, 2024).

The ratio did not vary significantly over the period, in 2019 the ratio was 0.03 which indicates that for every dollar of assets, TD Bank generated CAD 0.03 in sales. It reflects a relatively stable performance in asset utilization. In 2020, the ratio decreased to 0.02 which suggests that while total assets may have increased, sales didn't keep pace, leading to lower efficiency in asset utilization. Between 2021 and 2023, an increase back to the 2019 level signifies a potential improvement in efficiency, meaning TD Bank was able to leverage its assets better to generate sales compared to previous years.

TD Bank's total asset turnover has shown notable stability at 0.03 from 2019 to 2023, despite a slight decrease to 0.02 in 2020. This constancy indicates the bank is effectively managing its assets in generating revenue. However, recent allegations of involvement in money laundering, raise significant concerns about potential risks that could affect future improvements in asset utilization (Sherter, 2024). While the current stability reflects operational efficiency, the legal and reputational challenges stemming from these issues could restrict TD Bank's capacity to leverage its assets more effectively.

2.2.3. Debt to Equity Ratio

This ratio compares a company's total liabilities to its shareholder equity. A lower ratio suggests that the company is less reliant on debt for financing, which can indicate financial stability. For banks, this ratio is crucial, as it shows how much leverage the bank is using to finance its operations.

In 2019, with a ratio of 3.10, indicating that for every dollar of equity, TD Bank had $3.10 in debt. This lower ratio indicates that prior to the pandemic, TD Bank had a more conservative capital structure, relying less on debt financing compared to equity. In 2020, an increase in the ratio was observed, suggesting that the bank took on more debt relative to its equity, possibly due to increased borrowing needs or strategic investments during the pandemic. In 2021 and 2022, a slight decrease was seen, indicating some stabilization in the bank's leverage potentially due to an increase in equity or a reduction in debt levels. In 2023, an increase was again noted, indicating that TD Bank has raised its debt levels further compared to its equity, which may suggest aggressive growth strategies or increased funding needs.

The debt-to-equity ratio for TD Bank increased from 3.10 in 2019 to 3.93 in 2023, indicating a trend of higher leverage over this period. This rise could be attributed to the bank's strategic expansion initiatives and the need to navigate economic uncertainties. Notably, the 2023 Annual Report mentions that TD Bank "closed a strategic transaction and welcomed 1,700 TD Cowen colleagues to TD Securities" (TD Bank Group, 2023b), which may have contributed to the increased leverage.

TD Bank's debt-to-equity ratios reflect a trend of increasing financial leverage over the five-year period, with notable spikes in certain years that indicate strategic decisions regarding funding and growth initiatives. While a high debt-to-equity ratio can enhance returns on equity during profitable periods, it also poses risks during downturns when obligations must be met regardless of revenue performance.

2.2.4. Return on Equity (ROE)

This measure indicates how effectively management is using equity financing to generate profits. A higher ROE suggests that the bank is generating good returns on shareholders' investments. For investors, a consistently high ROE can be an attractive sign of profitability (Corporate Finance Institute, 2023).

It was observed that in 2019, the ROE ratio was 0.1393. This indicates that prior to the pandemic, TD Bank generated a profit of 13.93 cents for every dollar of equity invested by shareholders. This is a solid return, suggesting effective management and operations. In 2020, a slight decline in ROE was noted, possibly reflecting the challenges posed by external economic factors like the initial impacts of the COVID-19 pandemic which could have affected profitability. However, an increase in ROE in 2021 was seen, indicating recovery and improved profitability likely due to better economic conditions and effective cost management. In 2022, an ROE ratio of 0.1650 was recognized, suggesting strong financial performance that was possibly driven by increased revenues, effective operational efficiency, and strategic investments that yielded high returns. However, in 2023, a significant drop from previous years was observed, indicating existing challenges such as increased operational costs, lower net income, or dilution effects if equity levels rose without a corresponding rise in profits.

The ROE ratios for TD Bank varied significantly during this period, peaking at 16.5% in 2022 before declining to 9.65% in 2023. This aligns with the bank's reported earnings in its 2023 Annual Report, which stated, "The Bank reported fiscal 2023 earnings of $10.8 billion ($15.1 billion on an adjusted basis). While this was down 38 percent compared to 2022 (two percent on an adjusted basis), reflecting the decline in macroeconomic conditions" (TD Bank Group, 2023-b).

The sharp decline in ROE from 2022 to 2023 underscores the bank's challenges in sustaining earnings growth in a more difficult economic environment. Scotiabank analyst Meny Grauman noted that the bank's current issues surrounding anti-money laundering (AML) continue to overshadow their quarterly performance. Grauman views TD as a potential value investment but cautions that any signs of weakness could be "harshly punished," whereas strong results may not boost share prices due to ongoing AML concerns (Gonzales, 2024).

TD Bank's return on Equity ratios reflects a general trend of fluctuating profitability over the observed period. The peak ROE in 2022 indicates strong performance, while the decline in 2023 raises questions about challenges faced during that year.

2.2.5. Times Interest Earned (TIE)

This ratio measures a company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT). A higher TIE indicates that the company can easily cover its interest expenses, which is important for financial health. For banks, maintaining a strong TIE is essential to ensure they can handle their debt obligations (Cook, 2024).

With a ratio of 1.64 in 2019, this value indicates that TD Bank earned 1.64 times its interest expense, suggesting a moderate ability to cover interest obligations but not overly comfortable. It implies some level of financial risk. In 2020, it had a ratio of 2.05 showing a stronger capacity to meet interest payments, likely due to better earnings or reduced interest expenses amidst a challenging economic environment. In 2021, it had a ratio of 3.62. TD Bank showed a significant increase in value which suggests they have strong earnings relative to interest expenses. This indicates its robust financial health and having a comfortable cushion for covering debt obligations. This may reflect economic recovery and improved profitability. However, in 2022, a decrease from the previous year was observed. This indicates that while earnings were still strong, they were not as high relative to interest expenses as in 2021. This could suggest either increased interest costs or slightly lower earnings.

The TIE ratio peaked at 3.62 in 2021 before declining to 1.21 in 2023. This decline suggests a reduced ability to cover interest expenses, possibly due to increased regulatory costs and fines. Del Castillo (2024) reported that TD Bank was fined $3.1 billion for money laundering violations, which likely impacted its financial performance. The circumstances surrounding the fine may have created operational challenges or reputational damage that could pressure future earnings. Despite the bank's attempt to normalize its earnings, the market may still react negatively to the fine, perceiving it as a risk factor that could affect future profitability. This perception could result in increased stock price volatility and higher capital costs for the bank.

2.2.6. Price to Earnings Ratio (PE)

This ratio evaluates the company's current share price relative to its earnings per share (EPS). A higher PE might suggest that investors expect future growth or that the stock is overvalued. For banks, this ratio helps investors assess whether the stock price reflects the bank's profitability and growth prospects (Berger, 2024).

In 2019, the ratio was 9.61, which indicates that investors were willing to pay $9.61 for every dollar of earnings. It suggests a moderate level of confidence in the bank's earnings potential at that time. In 2020, a drop in the ratio to 7.69 implies a decrease in investor confidence, possibly due to economic uncertainty brought about by the COVID-19 pandemic. The market may have anticipated lower earnings, leading to a lower valuation. An increase from 2020 indicates a recovery in investor sentiment as the economy began to stabilize and banks started reporting improved earnings post-pandemic. This suggests renewed optimism about TD Bank's growth potential. In 2022, a decrease was seen, which shows that while there may have been some growth, it was not enough to sustain higher valuations. This is possibly due to concerns about rising interest rates or economic headwinds affecting profitability. However, the significant increase in the 2023 ratio suggests a resurgence in investor confidence, possibly due to strong earnings recovery or expectations of future growth driven by strategic initiatives or favorable market conditions. This higher ratio indicates that investors are willing to pay more for each dollar of earnings, reflecting optimism about the bank's prospects.

The PE ratio showed significant volatility, from 7.69 in 2020 to 13.18 in 2023. The low PE in 2020 likely reflects market uncertainty during the early stages of the pandemic. The increase in 2023 might reflect growing investor optimism despite the regulatory challenges. However, the revelation of money laundering issues in 2024 may impact future valuations.The 2024 regulatory fine of $3.1 billion for money laundering violations adds considerable strain, potentially increasing the bank's leverage ratio and reducing profitability (Del Castillo, 2024). Despite this, TD Toronto-Dominion Bank's Price-to-earnings ratios reflect varying levels of investor confidence and expectations over the observed period. The notable rise in 2023 suggests a strong recovery and positive outlook from investors after a challenging few years marked by economic uncertainty.

2.2.6. Analyzing the Impact of News Events on TD Bank's Financial Performance

The financial ratios for 2019-2023 reflect how TD navigates through significant economic turbulence, including the COVID-19 pandemic, regulatory issues, and subsequent recovery. The TD Bank money laundering violations in 2023 and 2024 were substantial and wide-ranging. According to reports, TD Bank had "long-term, pervasive, and systemic deficiencies" in its anti-money laundering (AML) policies and controls from January 2014 to October 2023 (Sherter, 2024). The bank should have monitored approximately $18.3 trillion in customer activity during this period.TD Bank pleaded guilty to multiple felonies, including conspiring to violate the Bank Secrecy Act and committing money laundering (Del Castillo, 2024). The bank failed to automatically monitor 92% of the total transaction volume from January 1, 2018, to April 12, 2024. These factors impact TD Bank's financial performance.