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TD Bank shares drop after report staff forced to meet 'unrealistic' targets

Mike Juang

Shares of Toronto-Dominion Bank (Toronto Stock Exchange: TD-CA) dropped Friday after Canadian news outlet CBC News reported that employees of the bank were being pressured to meet high sales revenue goals.

The Canada-traded stock closed the day down more than 5 percent, tracking for its biggest one-day decline since April 2009.

"We don't believe [the CBC report] is an accurate portrayal of who we are, or that it reflects the experience of most of our employees," TD Bank said in a statement, adding that they are taking the concerns seriously.

Attention on TD Bank's sales practices had already surfaced Monday, when CBC reported that employees of TD Bank claimed they were under "incredible pressure" to profit off of customers. The employees tried to meet "unrealistic" quarterly goals and sales targets by signing customers up for unneeded products and services, the report said.

Then on Friday, CBC published a report describing the high-pressure corporate environment leading to the scandal. Many employees told CBC they were on medical leave due to the pressure to meet high sales targets.

TD Bank Group last reported first quarter profits of $2.5 billion, becoming the largest bank in Canada based on assets, CBC said.

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