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.

TD Bank's Expansion Drive
TD Bank's Expansion Drive   

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.”