Canadian banks are looking to expand in the United States, taking advantage of pro-growth policies expected to be pursued by President-elect Donald Trump's new administration, senior executives told a banking conference in Toronto. The valuations of US regional banks have soared following Trump's victory in the November 8 presidential election, supported by the prospect of higher interest rates, softer banking regulation and a lower corporate tax rate.
Royal Bank of Canada Chief Executive Officer Dave McKay expects the bank to benefit from changes made by the incoming president, he said at the RBC 2017 Canadian Bank CEO conference. "We do see a stronger growth agenda in the United States, we do anticipate pro-growth policy coming out of the new administration," he said. "That would potentially lead to higher rates which is very good for our franchise in the United States." Canada's largest banks want to expand in the United States to offset sluggish growth in their domestic market. Toronto-Dominion Bank CEO Bharat Masrani told the conference the bank would look at acquisition opportunities in the US south-east or expanding its credit card business in the United States.