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RBC Buys HSBC Business in Canada for $10.1b

HSBC Overseas Holdings (UK) Limited, a wholly-owned subsidiary of HSBC Holdings plc, reported on Tuesday that it agreed to sell its Canadian banking business to the locally-headquartered Royal Bank of Canada (RBC).

RBC will be able to acquire 100% of HSBC Canada’s common equity. However, the acquisition is still subjected to regulatory approval. The deal is expected to be completed by the end 2023 and is estimated at $10.1 billion.

The pre-tax gain for HSBC Group will be $5.7 billion, according to financial data as of September 30, 2022. HSBC Canada’s assets are worth $94.6 million. The bank’s Canadian branch has 130 branches and 4200 employees. It serves nearly 800,000 retail and commercial customers.

Officials from HSBC admitted that the Canadian business portion has a “relatively lower market share.” The Canadian division was sold due to limited investment opportunities in HSBC Canada’s future growth.

“I am happy that we reached an agreement with RBC. This deal is strategic for both sides and RBC will take our business to the next level. We look forward to working closely alongside RBC’s management team to ensure a smooth transition of our clients and coworkers. Noel Quinn (CEO of HSBC Group) stated that our Group strategy has not changed and that closing this transaction will give us additional capital to grow our core businesses as well as return to shareholders.

RBC Cements’ Leadership Position

Even before the Acquisition RBC was one of the most important banks in the Land of Maple Leaf. It owned the majority of the assets and branches of HSBC Canada. It currently has over 1,200 units and serves approximately 10 million customers. The acquisition of 800,000.000 more from HSBC Canada will help it surpass other local players such as Toronto-Dominion Bank, Bank of Nova Scotia, and Bank of Nova Scotia.

“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service,” Dave McKay, the President & CEO at RBC, said.

RBC is a leader in Canada and internationally. It has 17 million customers worldwide and employs 89,000 people.

HSBC Overseas Holdings (UK) Limited, a wholly-owned subsidiary of HSBC Holdings plc, reported on Tuesday that it agreed to sell its Canadian banking business to the locally-headquartered Royal Bank of Canada (RBC).

RBC will be able to acquire 100% of HSBC Canada’s common equity. However, the acquisition is still subjected to regulatory approval. The deal is expected to be completed by the end 2023 and is estimated at $10.1 billion.

The financial data from September 30, 2022 shows that the sale agreement will result in a $5.7 billion pre-tax profit for HSBC Group. HSBC Canada’s assets are worth $94.6 million. The bank’s Canadian branch has 130 branches and 4200 employees. It serves nearly 800,000 retail and commercial customers.

Officials from HSBC admitted that the Canadian business portion has a “relatively lower market share.” The Canadian division was sold due to limited investment opportunities in HSBC Canada’s future growth.

“I am happy that we reached an agreement with RBC. This deal is strategic for both sides and RBC will take our business to the next level. We look forward to working with RBC’s management team to ensure smooth transitions for our clients as well as our colleagues. Noel Quinn CEO of HSBC Group stated that the Group strategy remains unchanged and that closing this transaction will allow us to free up capital to invest in our core businesses and return to shareholders.

RBC Cements’ Leadership Position

Even before the Acquisition RBC was the biggest bank in the Land of Maple Leaf, with the majority of branches and assets held by HSBC Canada. It currently has over 1,200 units and serves approximately 10 million customers. The acquisition of 800,000 more units from HSBC Canada by the bank will help it surpass other local banks, such as Toronto-Dominion Bank, and Bank of Nova Scotia.

“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service,” Dave McKay, the President & CEO at RBC, said.

RBC is a leader in Canada and internationally. It has 17 million customers worldwide and employs 89,000 people.

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Jacky

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