RBC selling its Jamaican banking operations
Royal Bank of Canada today confirmed that it has entered into a definitive agreement to sell RBC Royal Bank (Jamaica) Limited and RBTT Securities Jamaica Limited to Sagicor Group Jamaica Limited.
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to be finalized in the coming months, Royal Bank said in a release out of Toronto, Canada.
“Consistent with our strategy of being a competitive leader in the markets where
we operate, we determined after a careful and thorough review that the best decision for the long-term future success of RBC Jamaica was to sell it to Sagicor,” the release quoted Suresh Sookoo, chief executive officer of RBC Caribbean as saying.
“Sagicor is a well established financial franchise in Jamaica with the size, scale and complementary capabilities that RBC Jamaica does not currently possess,” Sookoo added.
Dave McKay, group head, Personal and Commercial Banking at RBC said however that RBC, which has operated in the Caribbean for more than 100 years, remained committed to the region.
“This transaction will allow us to successfully reposition our Caribbean
business for the future and focus on regions where we have significant market share,” McKay added.
Financial terms of the transaction were not disclosed, but the release said the purchase price approximately reflects the book value of RBC Jamaica.
RBC expects the transaction to result in an estimated loss of Can$60 million as a result of International Financial Reporting Standards, largely related to an estimated write-down for the proportionate share of RBC Jamaica goodwill and other intangibles acquired by RBC in connection with its acquisition of RBTT Financial Group in 2008.