Royal Bank of Canada (TSX: RY) (NYSE: RY) (“RBC”) welcomed the federal Minister of Finance’s approval to proceed with the acquisition of HSBC Bank Canada (“HSBC Canada”).
“I want to thank the Department of Finance, OSFI, and the Competition Bureau for their diligent work in reviewing this important acquisition,” said Dave McKay, president and CEO, RBC. “The acquisition of HSBC Canada is good for the country and Canadians. Not only will this keep more of Canada’s financial sector under Canadian ownership, but it will also allow more Canadians to access the global economy by combining the strength and scale of RBC with the international banking capabilities and financial products that HSBC Canada is known for.”
With this approval received, RBC and HSBC Canada will work together to facilitate a smooth transition to RBC for HSBC Canada’s clients and employees, who will receive further information in the coming days regarding what they can expect as both banks work towards completing the transaction.
“By bringing the capabilities, international connections and exceptional talent of HSBC Canada to RBC, we are creating an enhanced banking experience for our clients, which includes new international products and innovative digital capabilities to help them achieve their financial goals,” said Neil McLaughlin, group head, Personal & Commercial Banking, RBC. “At the same time, HSBC Canada clients will gain access to RBC’s award-winning personal, commercial, wealth and capital markets offerings, while continuing to enjoy a wide range of international banking services.”
The acquisition will strengthen RBC’s premium domestic business and position on the global stage.
RBC’s Commitments to Canadians
RBC today announced significant investments across Canada and particularly in British Columbia, where many HSBC Canada employees are located.
Growing Our Canadian Workforce
- Over the next five years, RBC will build out a Global Banking Hub in Vancouver, representing the bank’s commitment to making Vancouver a leading city for financial services. The hub will be supported with over 1,000 jobs across multiple disciplines including those with technology skills in digital, data science, and cyber; client-facing, multilingual advisors; fraud experts; risk managers; and client credit adjudication experts.
- RBC will increase its client operations and advice centre teams in Winnipeg, Manitoba, leading to the creation of 100 new jobs.
Meeting Community Needs
- RBC will provide $7 billion in financing for the construction, retrofitting and renovation of affordable housing1 and sustainable housing in Canada, to be committed over five years. We believe this would translate into approximately 25,000 housing units. In addition, RBC will begin offering lending that assists homeowners in redeveloping single family residences into duplexes, triplexes, multiplexes and laneway homes by June 30, 2024.
- RBC remains committed to donating 1 per cent of its Canadian net income before tax each year. The addition of HSBC Canada will allow us to increase our support of Canadians and their communities from coast to coast.
- RBC will commit $5 million over five years to support Manitoba’s agricultural and agri-processing sector, contributing to innovation and security in Canada’s food supply. This builds on RBC’s commitment as a founding member of the Canadian Alliance for Net-Zero Agri-food (CANZA).
Ensuring a smooth transition for clients and employees
- RBC is looking forward to welcoming all employees from HSBC Canada, enabling their client-facing advisors to continue to serve their existing clients and deliver exceptional advice and service, and showcasing the opportunities available at RBC. To allow RBC and incoming HSBC Bank Canada employees an opportunity to work together, understand talent and skills, and to explore roles within RBC’s organization, RBC will provide continued employment for HSBC Bank Canada employees2 for a minimum period of six months after the transaction closes.
- RBC remains committed to ensuring clients get significant value, exceptional service and competitive rates.
- HSBC Canada clients will have access to the largest network of branches and ATMs in Canada, giving them exceptional convenience in their everyday banking.
- HSBC Canada clients will have a dedicated toll-free number to call should they have questions about their transition to RBC. RBC will also maintain in-branch service in Cantonese and Mandarin as well as offer Cantonese and Mandarin service in our Advice Centre and through telephone banking.
For more information on this transaction, visit: https://www.rbc.com/hsbc-canada/
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 count.