TD Bank's billion dollar profit

Photo: The Canadian Press. All rights reserved.

In this Nov. 12, 2009 file photo, a sign for TD Bank is shown in New York. (AP Photo/Mark Lennihan, file)

 TD Bank Financial Group (TSX:TD) reported a fourth-quarter profit of $1.6 billion Thursday as it announced a deal to buy U.S.-based money manager Epoch Holding Corp. for US$668 million in cash.

"We've been looking for an opportunity to acquire a U.S. asset manager to build our North American Wealth business, which is a key growth area for TD," said Mike Pedersen, who runs TD's wealth management and insurance business.

"This acquisition makes strategic sense for TD. It will broaden our offer for institutional and retail clients in Canada and will immediately and significantly strengthen our U.S. wealth business."

Shareholders of Epoch (Nasdaq:EPHC) will receive US$28 per share under the deal that will see the company continue to operate under its current brand name and operating structure.

With the acquisition, TD said it expects to add approximately US$24 billion in assets under management to the US$207 billion already under management by TD Asset Management.

The purchase was announced as TD released its fourth-quarter and full-year results for 2012.