A sign for TD Canada Trust in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo Acquire Licensing Rights
Dec 11 (Reuters) – Discover Financial Services (DFS.N) on Monday named industry veteran Michael Rhodes, long seen as a possible CEO at TD Bank Group (TD.TO), as president and chief executive, effective in March.
Rhodes will replace John Owen, who has been serving as Discover’s interim CEO after Roger Hochschild stepped down in August, the U.S. provider of digital banking and payment services said in a statement.
TD insider Ray Chun will succeed Rhodes as chief of its Canadian personal banking segment, effective immediately, the bank said.
Rhodes, who wrapped up 12 years at TD, was largely seen as a CEO candidate as he led one of the core businesses.
“It’s a surprise,” said Anthony Visano, head of investment research at Kingwest and Co. “He seemed like he was primed for more things that were bigger things at the bank.”
TD CEO Bharat Masrani, 67, is nearing the 10-year mark in the top role.
Chun, who joined TD in 1992, most recently headed the bank’s wealth management and insurance unit. He will be replaced by Tim Wiggan.
TD’s growth has been closely watched by investors after it called off its proposed $13.4 billion takeover of U.S.-based First Horizon in May, shortly after disclosing a U.S Justice Department probe into TD’s anti-money laundering practices.
After that, TD said it would organically expand in the U.S. and has opened several offices in recent months. Canadian banks have been increasingly eyeing overseas acquisitions for growth.
Last week, TD appointed new co-leads and hired six bankers for its global financial institutions investment banking team.
The bank last month missed fourth-quarter profit estimates as it set aside bigger-than-expected funds to cover for potential sour loans.
Reporting by Arasu Kannagi Basil in Bengaluru and Nivedita Balu in Toronto; Editing by Mrigank Dhaniwala, Shounak Dasgupta, Leslie Adler and Richard Chang
Our Standards: The Thomson Reuters Trust Principles.
