Who is TD Bank’s new chief executive

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The next chief of executive of Toronto-Dominion Bank is a 32-year insider who rose through the ranks from the bank’s business administration program to senior executive roles in insurance, investing and wealth.

Raymond Chun, 55, will take the helm of Canada’s second-largest bank in April, when current chief executive Bharat Masrani retires, the bank said this week.

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“I am committed to the work ahead and energized by the opportunity to lead this outstanding bank into the future,” Chun said in a statement.

Born in Korea and raised in Canada, Chun earned a bachelor of arts at the University of Western Ontario and a master in business administration at Queen’s University in Kingston, Ont. He got his start at the bank’s management training program in 1992 and has since taken on roles such as president and chief executive of TD Insurance, president of TD Direct Investing and group head for wealth management and TD Insurance.

In December, he took charge of the Canadian personal banking segment when former group head Michael Rhodes left TD to lead U.S.-based Discover Financial Services.

Before his unexpected departure, Rhodes had been long viewed as a potential successor to Masrani.

“In our view, (Chun’s appointment) is a favourable development for TD even if its new CEO has slightly more focused experience than prior chief executives,” Canaccord Genuity Corp. analyst Matthew Lee and associate Betty Yang said in a note to clients.

Lee and Yang also believe that the announcement may be more positive for the firm’s U.S. anti-money laundering (AML) outlook. TD has taken billions of dollars in charges related to ongoing U.S. investigations of lapses in its AML program, for which Masrani has taken full responsibility.

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“In our view, the firm was unlikely to appoint a new (chief executive) without a clear roadmap on an AML resolution and, as such, the selection of Mr. Chun (who has primarily Canadian experience) may suggest that the firm is comfortable with both its fines and non-monetary penalties,” Lee and Yang wrote.

However, other analysts said Chun’s appointment was a surprise.

“We believe some investors were open to the possibility of TD selecting an external CEO candidate, one with deep U.S. banking sector experience (and experience with U.S. regulators) given the bank’s AML issues,” National Bank analyst Gabriel Dechaine said in a note.

“We note that, aside from regulatory fines, these issues could have long-term operational impacts on TD’s U.S. bank.”

Outside of the bank, Chun serves on the Toronto Region Board of Trade’s board of directors. He is also a member of the organization’s Congestion Task Force Governing Council, which was formed to address Toronto’s congestion crisis and its impact on the economy.

Giles Gherson, president and chief executive of the Toronto Region Board of Trade, described Chun as action-oriented, thoughtful and astute.

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“If you look at his trajectory over the last decade or so, he really has moved from one core business unit to another, and so he’s been a leader through … most core aspects of the bank,” Gherson said, calling Chun’s appointment “a terrific move for TD.”

Chun previously sat on the boards of Interac and Acxsys, before the companies merged to form Interac Corporation in 2018.

Interac Corp. president and chief executive Jeremy Wilmot said Chun has “long been an advocate for the Canadian financial industry.”

“He is sure to bring the same focus and deep knowledge as (chief executive) and we look forward to working with him in his expanded role,” Wilmot added.

Chun also received the Dream Tree Award from the Korean Canadian Scholarship Foundation in 2016 for his efforts toward growing and elevating Korean Canadian charities through corporate giving and sponsorships.

• Email: slouis@postmedia.com

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