Big, bigger, biggest!
The battle of the banks in Canada is taking a new direction, as the Royal Bank of Canada has entered an agreement to buy HSBC’s Canadian business in a $13.5-billion cash deal. If the takeover is approved, RBC will consolidate its position as Canada’s largest bank,
HSBC Canada had $134 billion in assets as of Sept. 30 and has approximately 130 branches and 4,200 employees. Its banking segment holds about two per cent of Canadian deposits and mortgages.
What the RBC and HSBC deal will bring
According to RBC, this acquisition of HSBC Canada will bring many commercial and operational changes to RBC including the following:
- HSBC Canada’s premier commercial bank will add scale to RBC’s Business Banking solutions, expanding its offering focused on international business clients.
- HSBC Canada adds strong expertise in liquidity management, trade finance, international cash management and sustainable finance serving Canadian and global corporates.
- HSBC Canada’s wealth and personal banking business adds strengths in meeting the needs of international clients with connections to Canada.
- This will add to RBC’s ability to connect our Canadian clients to the world and help RBC better serve global clients looking to invest and grow in Canada.
- HSBC Canada clients will benefit from industry leading advice, convenience, digital capabilities and product breadth.
What the RBC and HSBC deal will do for immigrants to Canada
- Increase in the number of tailor- made banking products and services to newcomers to Cansda.
- Lesser job uncertainty amongst HSBC’s employees as questions were earlier being raised about HSBC possibly closing down its operations in Canada.
- New career opportunities for highly skilled immigrants.
According to RBC President Dave McKay, “HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and position us to be the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities.”