By Scott Haggett

CALGARY, Alberta (Reuters) - Toronto-Dominion Bank (TD.TO: Quote, Profile, Research) expects C$500 million in additional profit in 2009 due to its $7 billion acquisition of Commerce Bancorp, Chief Executive Ed Clark said on Thursday.

In a deal that closed on Monday, TD picked up New Jersey-based Commerce to expand its other U.S. operation, New England-centered TD Banknorth. It expects the acquisition to boost earnings in what would otherwise be a mundane year for the bank.

"We're going to get a C$500 million increase in our earnings from TD Commerce," in 2009, Ed Clark told reporters after the bank's annual meeting. "It's a highly accretive deal in 2009 and I don't think the market has figured that out at all."

The deal won't add to earnings per share in 2008, Clark said, as about 30 million new shares were issued to help pay for the acquisition.

In total, TD expects its U.S. personal and commercial banking operations to contribute profit of C$1.2 billion in 2009, up from an expected C$700 million in 2008, even though provisions for credit losses will rise. In fiscal 2007, which ended Oct. 31, U.S. retail banking profit from TD Banknorth was C$320 million.

Clark said TD expects little turbulence despite the U.S. subprime mortgage crisis. The bank had avoided investments in subprime mortgage securities or in the Canadian asset-backed commercial paper market.

BCE FINANCING FIRM

TD says it has no changes planned for its share of the C$34.8 billion buyout of BCE Inc (BCE.TO: Quote, Profile, Research), Canada's biggest telecom company. The bank is underwriting a C$3.3 billion credit facility and providing a C$500 million equity bridge facility in the deal.