TD Bank shakes up senior management ranks

TORONTO -- TD Bank (TSX:TD) is shuffling around its senior managers, reassigning its chief financial officer and replacing her with another senior bank executive.

Colleen Johnston, TD's current CFO, will become the group head of direct channels, technology, marketing and real estate.

She will be replaced by Riaz Ahmed, currently TD's group head of insurance, credit cards and enterprise strategy.

TD president and CEO Bharat Masrani says the changes, which take effect on Jan. 2, were spurred by the retirement of Fred Tomczyk from his post as TD Ameritrade's president and CEO on Sept. 30, 2016.

"That created the impetus for a lot of these moves," Masrani said in a telephone interview Tuesday. "This is not in reaction to any change in strategy or outlook that TD might have."

Tomczyk's role will be filled by Tim Hockey, who will vacate his role as group head of Canadian banking and wealth management to become the president of TD Ameritrade Holding Corp. effective Jan. 2. The two executives will have some overlap as Hockey transitions into his new role.

Meanwhile, Teri Currie will take over from Hockey as group head of Canadian personal banking. Currie is currently TD's group head of direct channels, technology, marketing and people strategies.

Currie said one of her primary objectives in her new role will be to help customers interact with the bank across multiple channels including branches, the phone, ATMs and the bank's digital properties.

CIBC analyst Robert Sedran said in a note to clients that TD Ameritrade, which is based in Omaha, Neb., "is expected to benefit greatly once the Federal Reserve begins increasing interest rates."

"These banks are about more than one or two people, so we do not view this as changing our investment thesis (especially with the Federal Reserve getting closer to a move that should provide some oxygen to the U.S. business)," Sedran said.

"We have liked TD partly for U.S. exposure and partly for the strength of the domestic footprint. None of that changes in the near term."

Edward Jones analyst Jim Shanahan said in an email that the announcement is a "long-term positive for those who now have the opportunity to stretch themselves in new roles."