Written by Joey Frenette at The Motley Fool Canada

It’s been a pretty abysmal year for TD Bank (TSX:TD) stock, which was clobbered as more light was shined on the penalties and restrictions from prior money-laundering issues. And though shares of the Canadian bank have trailed the pack, I wouldn’t yet count it out as we go into 2025.

Indeed, there’s just so much negativity and pessimism surrounding the bank as its growth plan in the U.S. market gets hindered as a result of the money-laundering fiasco, a tough event that investors should stop fretting over already.

Room to grow in the Canadian banking scene

Though TD Bank can still grow in Canada, investors don’t seem to be willing to stick around, given there may be less room to run domestically. Either way, TD Bank remains one of the best-capitalized banks on the planet, making its dividend not only bountiful but profoundly safe and likely subject to a steady amount (think single-digit) growth over the next three years and beyond as the bank pivots with its longer-term growth plan.

Of course, TD Bank needs to pivot quickly if it’s to catch up to some of its better-performing banking peers in the so-called Big Six. I think it can.

Can TD be like some rivals that are now making higher highs? Perhaps. However, it could take some time for TD to heat up on a relative basis. In any case, I believe TD stock is a deep-value option right here for investors seeking a huge passive-income payment (the yield is just over the 5% mark) and a narrative that’s now incredibly underrated.

Sure, the U.S. growth may be put on pause, but don’t expect TD shares to stay down as a handful of pretty intriguing catalysts look to make their mark on the stock at some point over the next year.

Positive change ahead for TD stock?

First, TD Bank is getting a new chief executive officer shortly. Outgoing top boss Bharat Masrani is out, and Raymond Chun will be in. I believe this big change at the very top of the bank could mark the beginning of a turning point of sorts. As I noted before, Chun is a seasoned veteran who can make TD an impressive force in banking again.

Simply put, do not bet against TD in the Chun era.

Though I have no idea how long it will take for Chun to drive enough change to cause shares of TD to come roaring back, I think that there’s a lot of potential upside to be had if he can garner enthusiasm for a bank that I believe has what it takes to return to its former glory.

Sure, the money-laundering woes may have weighed heavily, but if the bank continues doing its best to make things right and move along, I think the issue will be forgotten, especially if the bank can garner a few strong quarters together.