Gordon Nixon, CEO of Royal
Bank of Canada (RBC), told an investor conference in Toronto on 11
January that the “jury is out” on the future of RBC’s retail unit
in the US.

“At this point in the cycle,
I am not sure what we would like to do in [the US] in the longer
term” said Nixon.

He has in the past said that
all options were on the table as regards its 426-branch-strong US
division, concentrated in the in the South-East of the
US.

“We are starting to see our
programme in the US generate improving results but retail banking
in the US remains stressed across the system.”

He said RBC had to be
convinced the bank could make its targeted return on investment
before investing any further capital in the unit.

Nixon added that “the jury is
out” on what future returns will be.

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RBC’s international division
reported a loss of C$317m ($319.5m)
in fiscal 2010, compared with a loss of C$1.45bn in fiscal
2009.

By contrast, rival TD remains
on the lookout for further deals in the US, one month after
agreeing a $6.3bn deal to acquire US-based auto lender Chrysler
Financial.

At the same conference, TD
president and CEO Ed Clark said he remains keen to expand TD’s US
retail network.

“We really haven’t changed
our position. We will do opportunistic smaller deals that we can
make money on and fill in where we want to fill in.”

Clark added: “We are not
complementing any major deal until we see the regulatory
environment shake down.”

Clark’s comments appear to
rule out an early move for US regional lenders such as SunTrusts;
the Georgia-based lender with $174bn of assets and 1,670 branches
has been talked up by analysts as a possible target for
TD.

Utah-based Zions (assets of
$51bn and 500 branches) and Regions Financial ($133bn assets and
1,800 branches) are also regarded as possible takeover targets for
Canadian lenders.

Clark said that, while the US
retail market remains disrupted, this created a positive
environment for TD.

“We have a positive outlook on the US,” he
said.