Personal loans grow for TD Bank

09/02/2010
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According to TD Bank, its personal loan unit saw an 18 percent increase in the number of personal loans it gave out in the third quarter of 2010 compared to the same period in 2009. Revenues from this type of lending rose $3.2 billion on average, and all average loan revenues jumped $4.2 billion.

Similarly, the banking giant said revenues from personal loans in the third quarter rose $1.3 billion - 7 percent more than the previous three-month period. That made up almost half of all average loan increases, which climbed $2.8 billion.

The bank also noted it expects credit losses or defaults on personal loans to remain stable while revenue growth slows a bit in the waning months of the year. This, it said, is largely due to an expected drop in volumes and more competitive pricing in the marketplace.

As more lenders get into the growing personal loan business, consumers may be able to expect rates and fees on such products to continue to decline.

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