Question

SWOT analysist of TD Bank

Answer 1

SWOT analysis of TD Bank:

Strengths – TD Bank has a strong market position in North America and provided the fact that it is one of the largest banks in Canada the bank has a competitive edge over its competitors due to the size and scale of its operations. The bank’s domestic bank networks in Canada are very strong and due to this it receives sizeable sustainable earnings.

Weaknesses – TD Bank has limited global exposure when compared to its competitors like Bank of Nova Scotia etc. Also another weakness is limited ability to increase market share due to strong competition from existing players.

Opportunities – TD Bank has opportunities to expand its operations in credit cards business through the inorganic route. The bank did this in the past through acquisition of MBNA and in future more such opportunities will be available and has to be grabbed by the bank. The bank also has opportunities in the wealth and insurance business and expands its presence in this segment.

Threats – TD Bank’s main threat is the increasing volatility in the North American market. Secondly under the Trump regime there have been regulatory changes and these changes can have a negative impact on the US business climate and its position in the global trade market. This can have negative repercussions for the bank.