TD Bank (TSX:TD) chief executive Ed Clark says slower growth of the Canadian economy will make it “tougher” for the bank to meet its earnings targets this year.

But the head of one of Canada’s biggest banks said Thursday that its leaders will turn to assets other than its domestic banking operations for further growth.

“Yes, we remain in a slow growth economy and a low interest rate environment, and that is hard environment for a deposit-based bank like TD,” Clark told the bank’s annual meeting in Ottawa.

“It is going to be tougher to meet our target.”

The bank is aiming for adjusted earnings per share growth of seven to 10% in 2013, but Clark acknowledged that not everyone shares its confidence.

“You can see that in our stock price, which has frankly not had much growth in the past year,” he said.

“The market is worried that we won’t be able to match previous performances.”

Investors shouldn’t be worried though, the outgoing CEO said, because the bank is prepared to “rotate” the sources of earnings and look outside its domestic consumer banking operations. In particular, he pointed to TD Bank’s presence in the United States as an area of future growth.

“Clearly our unique position in the United States … gives us a core advantage as the U.S. recovers,” he said.

Other divisions like business banking, credit cards and wealth management will also become key resources, he said.

On Wednesday, Clark announced that he plans to retire late next year and will be replaced by Bharat Masrani, who is currently head of the bank’s U.S. operations.

Masrani has helped develop one of the bank’s biggest assets — its stateside presence in personal and commercial banking — since he took the role in 2006.

He will face significant changes in the domestic banking industry as the incoming leader begins an 18-month transition period that’s intended to make a smooth shift between his roles.

Advantages which once helped the Canadian economy weather the financial crisis are starting to fade. The list includes a dollar that has fallen from its heights and it now close to par with the greenback, softer demand for commodities, and the start of constrained federal spending, Clark said.

Weaker productivity also remains a major challenge for the economy, he noted.

Businesses have complained there is a lack of workers trained in the proper jobs to fill vacancies, and that productivity is taking a hit because of it.

“Like many Western countries we are facing the problems, as well, of growing inequality and the decline of the working middle class,” he said.

“So all of this will likely contribute to slower economic growth in Canada, perhaps about 1 1/2% growth in 2013, and we will likely grow less in the U.S. over the medium term.”

Shares of TD Bank were down 91 cents to $82.52 on the Toronto Stock Exchange.