RBC sells EC operations to group of local banks
Royal Bank of Canada announced on Thursday, December 12 that it has entered into what it termed “definitive agreements” to sell all banking operations in the Eastern Caribbean to a consortium of indigenous banks within the region. The sale includes all of the branches of Royal Bank of Canada which the bank refers to collectively as “RBC Eastern Caribbean.” They are located in Antigua, Dominica, Montserrat, St. Lucia, and St. Kitts & Nevis, as well as regional businesses operating under RBC Royal Bank Holdings (EC) Limited in Nevis, Grenada and St. Vincent & the Grenadines.
RBC said in a press release issued on Thursday that the purchaser was a consortium of five financial entities: First 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 of 1st National Bank of St. Lucia, said, “We formed the consortium for the express purpose of expanding the scale of the locally owned financial entities in the Eastern Caribbean Currency Union.
“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.”
The consortium was advised by PwC (JA), led by Wilfred Baghaloo.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.