Toronto-Dominion Bank announced that it will be closing 82 branches in the U.S. This move came as part of a “store optimization” in the American unit, where the net income dropped in the first fiscal quarter.
Greg Braca, the chief executive officer of the American unit, announced the number of closures in the company’s earnings conference on Thursday. Toronto-Dominion Bank said in a filing that earnings at the U.S. retail locations fell by 16% to $615 million, including a 6% increase in expenses.
The company decided to close 82 of 1,223 branches in the U.S. after it found that some of the branches were redundant to nearby locations. Additionally, many people have begun doing transactions online or on the TD app.
Even banks are going part digital to meet customers’ needs and changing lifestyles because of the pandemic. “You’ll see markets in future years where we continue to invest in new stores,” Braca said. “But what you’re also seeing is the need for investment in digital and digital capabilities, and we’re doing just that”.
References:
1) Orland, K. (2021, February 25). TD to Close 82 U.S. Bank Branches as Covid Drives Digital Growth. Retrieved February 27, 2021, from https://www.bloomberg.com/news/articles/2021-02-25/td-to-close-82-u-s-bank-branches-as-covid-drives-digital-growth
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