UPDATE: Citigroup Initiates Toronto Dominion Bank Group at Buy on US Exposure

Citigroup initiated coverage on Toronto Dominion Bank Group

with a Buy rating. Citigroup commented, "Among the major Canadian banks, TD has the most meaningful exposure to the US, both in terms of revenues (27% of the total) and pre-tax profit (16%). We believe TD is best positioned to take advantage of the US housing and economic market recovery in terms of lower impairments. Besides the upside to EPS estimates (we estimate 1% accretion for each additional 10 bps improvement), we believe that the US business could generate excess capital by moving from the Standardised to the Advanced IRB approach for credit risk modelling. The upside could be to the tune of 5% to current 2012E book value and 79% to current 2012E DPS estimates." Toronto Dominion Bank Group closed at $82.93 on Monday.