TORONTO, Dec. 12, 2019 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today announced it
has entered into definitive agreements to sell all banking
operations in the Eastern
Caribbean to a consortium of indigenous banks within the
region. The transaction is subject to regulatory approval and other
customary closing conditions, and is expected to be finalized
in the coming months.
"Consistent with our strategy of being a competitive leader in
the markets where we operate, RBC is always evaluating
opportunities for our business. Earlier this year, we were
approached by a consortium of indigenous banks with their proposal
to acquire all RBC Eastern Caribbean operations," said Rob Johnston, Head, RBC Caribbean Banking.
"After a review of our operations and strategy, we determined this
opportunity was a good decision for the long-term future success of
RBC Caribbean, and also, that it aligned with our vision to help
our clients thrive and communities prosper," he said.
The sale encompasses the branches of Royal Bank of Canada in Antigua, Dominica, Montserrat, St.
Lucia, and St. Kitts and
Nevis, as well as regional businesses operating under RBC
Royal Bank Holdings (EC) Limited in Nevis, Grenada and St. Vincent and the Grenadines. Collectively, these operations are
referred to as "RBC Eastern Caribbean". The consortium of five
financial entities purchasing includes: 1st National
Bank of St. Lucia, Antigua
Commercial Bank Ltd., National Bank of Dominica Ltd., the Bank of
Montserrat and Bank of Nevis
Ltd.
Johnathan Johannes, Managing
Director, 1st National Bank of St. Lucia, shared, "We formed the consortium
for the express purpose of expanding the scale of the locally owned
financial entities in the Eastern Caribbean Currency Union.
This transaction gives us the size and scale to play a more active
role in the development of our respective countries. We see this
transaction as the first step in achieving even greater synergies,
efficiencies and cross-territory marketing opportunities."
"RBC has operated in the Caribbean for more 100 years – longer than we
have been in many parts of Canada.
We remain committed to the future of the Caribbean and to a vision of digital
innovation that transcends traditional services," said Johnson.
"This transaction will allow us to realign and focus our strategy
on Caribbean markets where we can
achieve that vision most successfully."
"Self-determination is the highest level of empowerment – and
the indigenous banks acquiring this business will now have an
increased opportunity to influence the development of their
communities," said Johnston.
Johannes added, "And speaking on behalf of the local banks, we
embrace and eagerly anticipate that opportunity."
The consortium was advised by PwC (JA), led by Wilfred Baghaloo, who added "this transaction
demonstrates that Caribbean
countries and businesses have the capacity and capability to
come together when the circumstances are right."
Financial terms of the transaction were not disclosed. RBC will
release its first quarter 2020 results and host an earnings
conference call on February 21, 2020.
ABOUT RBC IN THE CARIBBEAN
With more than 100 years of
dedicated service to the region, RBC has maintained a presence in
17 countries, with 52 branches and over 3,200 employees serving
more than one million clients. As one of the Caribbean's leading diversified financial
services companies, RBC provides personal and commercial banking,
wealth management, corporate and investment banking, insurance and
trust and asset management services to a wide range of clients,
including individuals, small businesses, general commercial
entities, regional and multi-national corporations and governments.
For more information, please visit rbc.com/caribbean.
About RBC
Royal Bank of Canada is a global financial institution with
a purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 85,000+ employees who bring
our vision, values and strategy to life so we can help our clients
thrive and communities prosper. As Canada's biggest bank, and one of the largest
in the world based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to 17 million clients in Canada, the U.S. and 34 other countries. Learn
more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
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SOURCE RBC Royal Bank