RBC Intends To Sale US Bank Unit To PNC
June 18, 2011 by staff
RBC Intends To Sale US Bank Unit To PNC, Royal Bank of Canada (USA) (NYSE: RY), the largest lender by assets, is in talks to sell its unit in advance of U.S. retail banking PNC Financial Services (NYSE: PNC), said that people linked to the situation. Internal sources reported that PNC is expected to succeed in a competitive bid from BB & T Corporation (NYSE: BBT), and a contract can be reached within days. The company can earn as much as 3.7 billion and, according to Peter Routledge, ananlyst at National Bank Financial.
Routledge added that U.S. banking personal and commercial or profit-go or go home. Royal said he will not make that big of double down, are likely to go elsewhere, and I think that’s the right approach.
The report came less than five months after the U.S. Federal Reserve gave the green light to lenders to choose, including PNC; to increase dividends and capital available for the first time since the financial crisis began, after a wave of acquisitions.
Canadian banks have also been dynamic, with Toronto-Dominion Bank and Bank of Montreal, both the introduction of major U.S. acquisitions in December, while institutions such as RBC and Bank of Nova Scotia have been active in a setting more modest in other parts of the world.
RBC began construction of its U.S. bank retail around 2001 with the attainment of Centura Banks, continually adding to it with offers consistent in subsequent years, at a total cost of over $ 4 million and, but the process was focused mainly in the southeastern states such as Florida, Alabama and North Carolina in the center of the deformation of real estate. As a result, was left with significant losses of which is still struggling to recover.
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