TD Bank announces CEO shuffle as Masrani set to retire in 2025
Masrani, who became CEO in 2014, is set to step down in April, Toronto-based TD said. TD also said Riaz Ahmed, the head of its capital markets unit TD Securities, will retire in January.
TD Bank CEO Bharat Masrani is set to retire next year, with Ray Chun, head of the bank’s Canadian banking division, stepping in as his successor. This leadership change comes as Canada’s second-largest lender anticipates U.S. fines related to weaknesses in its anti-money laundering practices.
Masrani, who has held the CEO position since 2014, will step down in April, according to a statement from the Toronto-based bank. TD also announced that Riaz Ahmed, the head of TD Securities, will retire in January.
During Masrani's tenure, he prioritized expanding the bank's U.S. operations, building it into the 10th largest bank in the U.S. with about $400 billion in assets and 1,150 branches along the East Coast. However, last year TD faced scrutiny from U.S. authorities, including the Justice Department, over anti-money laundering deficiencies. This followed the termination of TD’s $13.4 billion acquisition of Tennessee-based First Horizon, which would have expanded its network in the Southwestern U.S.
The U.S. investigations stem from accusations that Chinese drug traffickers laundered at least $650 million through TD between 2016 and 2021, with allegations that an employee accepted a bribe to facilitate the money laundering.
In August, TD reported its first loss in decades, setting aside $2.6 billion for anticipated fines from U.S. regulators.
“I take full responsibility for the anti-money laundering challenges we faced during my time as CEO,” Masrani said in a statement on Thursday. “In the coming months, I will continue to lead the critical remediation efforts necessary to meet our obligations and strengthen our risk controls.”
Chun, who has been with TD since joining its management training program in 1992, has held several senior roles, including president of TD Direct Investing, CEO of TD Insurance, head of wealth management and insurance, and most recently, head of Canadian personal banking.
Last month, shareholders and analysts interviewed by Reuters predicted a CEO transition in 2024. However, Jefferies analyst John Aiken noted, “The timing is a bit of a surprise. We expected the announcement to come after the U.S. investigation concluded.” Aiken also highlighted that Chun’s lack of direct involvement with U.S. retail banking may have accelerated his appointment.
Under Masrani's leadership, TD’s stock has risen nearly 54%, though it has seen a decline this year. Shares were up about 1.5% on Thursday morning following the announcement.
Masrani will continue to serve as an advisor until October 2025, TD confirmed. The bank also announced several executive changes: Paul Clark will lead the Wealth Management division, Sona Mehta will take over Chun’s former role as head of Canadian personal banking, and Tim Wiggan will succeed Ahmed as head of TD Securities.
