Chrysler Deal Will Add $100 Million to 2012 Earnings: TD Bank CEO
The president and CEO of TD Bank Group, Ed Clark, told CNBC Tuesday that the acquisition of Chrysler Financial will add $100 million to its earnings in 2012, and more than that in 2013.
Clark also said the acquisition would also represent a “significant uptick in our rate of return on invested capital,” and likely would be the last major acquisition of a US company by TD Bank, which is headquartered in Toronto. Behind home mortgages and credit cards, auto loans are the third largest type of consumer lending, said Clark.
The $6.3 billion deal to acquire Chrysler Financial, which is the fifth largest lender of auto loans in the US, would cap off six years of TD's buying of American assets, totaling $20 billion altogether. Other acquisitions include Banknorth Group, Commerce Bank and The South Financial Group.
“We like this franchise [Chrysler Financial], because we’ve seen the credit performance,” added Clark. “We’re quite convinced that we can grow assets and get very good returns—even while operating in what is a tough economic environmental in the United States.”