TORONTO, March 28, 2024 /CNW/ - Royal Bank of Canada (TSX: RY) (NYSE: RY) ("RBC")
today announced it has completed the acquisition of HSBC Bank
Canada ("HSBC Canada").
"Today marks one of the most
exciting times of our 155-year history and a pivotal milestone in
our long-term growth story as we welcome 4,500 employees and
780,000 clients from HSBC Canada," said Dave McKay, president
and CEO, RBC. "This once-in-a-generation opportunity will show
Canadians how our combined organization will deliver an enhanced
banking experience, create better value for clients and strengthen
our communities. I want to thank everyone involved in the
monumental team effort to bring this deal to life and I look
forward to the possibilities this acquisition will deliver."
To support the acquisition, RBC announced a number of
commitments in December 2023,
including commitments to create new Canadian jobs, continue to
donate 1% of net income before taxes to communities, and finance
the construction of new housing in Canada. In Vancouver, the bank will also build a new
Global Banking Hub over the next five years. This will be supported
with over 1,000 jobs across multiple disciplines.
"RBC's acquisition of HSBC Canada expands the depth and
breadth of our international banking capabilities and builds our
ability to connect Canadians to the global economy," added
Neil McLaughlin, group head,
Personal & Commercial Banking, RBC. "Through this combination,
RBC is now exceptionally positioned as the bank of choice for
commercial clients with international needs, newcomers to
Canada and affluent clients who
need global banking and wealth management capabilities."
With the closing of the acquisition, conversion activities will
now begin. HSBC Canada's branches and offices will open for
business on Monday, April 1, 2024 as
RBC locations.
For more information on this transaction, visit:
https://www.rbc.com/hsbc-canada/.
Caution regarding forward-looking
statements
This press release contains forward-looking statements within
the meaning of certain securities laws, including the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995 and any applicable Canadian
securities legislation, with respect to RBC's beliefs, plans,
expectations, and estimates. Forward-looking statements in this
press release may include, but are not limited to, statements with
respect to plans for the combined operations of RBC and HSBC
Canada, our strategies or future actions, and our objectives and
commitments. The forward-looking information contained in this
press release is presented for the purpose of assisting the holders
of our securities and financial analysts in understanding the
transaction and may not be appropriate for other purposes. Forward
looking statements are typically identified by words such as
"believe", "expect", "suggest", "seek", "foresee", "forecast",
"schedule", "anticipate", "intend", "estimate", "goal", "commit",
"target", "objective", "plan", "outlook", "timeline" and "project"
and similar expressions of future or conditional verbs such as
"will", "may", "might", "should", "could", "can" or "would" or
negative or grammatical variations thereof.
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, both general and specific in nature, which give rise
to the possibility that our predictions, forecasts, projections,
expectations or conclusions will not prove to be accurate, that our
assumptions may not be correct, that our financial performance,
environmental & social or other objectives, vision and
strategic goals will not be achieved, and that our actual results
may differ materially from such predictions, forecasts,
projections, expectations or conclusions.
We caution readers not to place undue reliance on our
forward-looking statements as a number of risk factors could cause
our actual results to differ materially from the expectations
expressed in such forward-looking statements. These factors – many
of which are beyond our control and the effects of which can be
difficult to predict – include, but are not limited to: the
possibility that the anticipated benefits from the transaction,
such as creating cross-sell opportunities and growing our Canadian
operations are not realized in the time frame anticipated or at all
as a result of changes in general economic and market conditions,
interest and exchange rates, monetary policy, laws and regulations
(including changes to capital requirements) and their enforcement,
and the degree of competition in the geographic and business areas
in which we currently operate; the risk that any announcements
relating to the combination could have adverse effects on the
market price of our shares; the possibility that the combined
operations of RBC and HSBC Canada may not perform as expected or in
a manner consistent with historical performance; the ability to
promptly and effectively integrate HSBC Canada; our ability to
cross-sell more products to customers; reputational risks and
potential adverse reactions or changes to business or employee
relationships, including those resulting from the completion of the
transaction; the possibility that the integration may be more
expensive to complete than anticipated, including as a result of
unexpected factors or events; diversion of management time on
integration-related issues; failing to retain key talent of HSBC
Canada following the completion of the transaction; material
adverse changes in economic and industry conditions; general
competitive, economic, political and market conditions; changes in
asset quality and credit risk; the inability to sustain revenue and
earnings growth; inflation; customer borrowing, repayment,
investment and deposit practices; the impact, extent and timing of
technological changes; capital management activities; and those
other factors discussed in the risks sections of our annual report
for the fiscal year ended October 31,
2023 (the 2023 Annual Report), and the Risk management
section of our Q1 2024 Report to Shareholders, as such sections may
be updated by subsequent quarterly reports, all of which outline
certain key factors and risks that may affect our future results
and our ability to anticipate and successfully manage risks arising
from all of the foregoing factors.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. When relying on our forward-looking statements to make
decisions with respect to us, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events, as well as the inherent uncertainty of
forward-looking statements. Material economic assumptions
underlying the forward-looking statements contained in this press
release are set out in the Economic, market and regulatory review
and outlook section and for each business segment under the
Strategic priorities and Outlook sections in our 2023 Annual
Report, as updated by the Economic, market and regulatory review
and outlook section of our Q1 2024 Report to Shareholders. Such
sections may be updated by subsequent quarterly reports.
Any forward-looking statements contained in this press release
represent the views of RBC only as of the date hereof. Except as
required by law, RBC does not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by us or on our behalf.
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 94,000+ employees who leverage their imaginations and insights
to 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 our more than 17 million clients in Canada, the U.S. and 27 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.
SOURCE Royal Bank of Canada