2 Bank Stocks to Buy at a Discount

Group 1: Toronto-Dominion Bank (TD Bank) - Toronto-Dominion Bank is currently facing significant challenges, including a $450 million provision for losses and potential fines up to $4 billion due to financial probes related to money laundering [2][10] - Despite these issues, TD Bank is expected to recover and continue its long-term growth, particularly in the U.S. market after resolving current problems [3] - The stock has declined nearly 15% this year, resulting in a historically high dividend yield of 5.3%, compared to the average U.S. bank yield of around 2.8% [10][12] Group 2: Bank of Nova Scotia (Scotiabank) - Scotiabank is adjusting its strategy by focusing on more promising opportunities in Mexico while considering exiting less attractive markets like Colombia [5] - The bank's Tier 1 capital ratio has improved to 13.2%, indicating strong resilience and positioning for future growth despite current challenges [6] - Scotiabank has a high dividend yield of 6.6%, reflecting its struggles with earnings growth and return on equity, but it remains a conservative player in the heavily regulated Canadian banking sector [13][15]