RBC ordered to reveal who's behind 97 offshore accounts
Royal Bank of Canada has been ordered to reveal the real owners of 97 offshore corporations that used its services. This is after the Canada Revenue Agency got a court order saying it wants to check whether the real owners are Canadians and if they have properly declared their income in these companies and paid taxes.RBC buying HSBC Canada for $13.5B
HSBC has 130 branches and 4,200 full-time equivalent employees in Canada
RBC chief executive Dave McKay said the deal offers the opportunity to add a complementary business and client base.
"This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities," McKay said in a statement Tuesday.
"It will help us better serve global clients looking to invest and grow in Canada."
130 branches in Canada
"The deal makes strategic sense for both parties, and RBC will take the business to the next level," HSBC Group chief executive Noel Quinn said in a statement.
"Our group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders."
The Canadian arm of British-based HSBC has been up for sale this year because the parent company has been facing pressure from its largest shareholder, China's Ping An Insurance Group, to boost returns.
At more than $13 billion, the price tag makes the deal the most expensive one ever for a Canadian bank buying another Canadian-based bank, although the so-called Big Five routinely spend more than that on foreign acquisitions.
HSBC has had operations in Canada since 1981 and currently has approximately 130 branches, 4,200 employees, serving roughly 780,000 customers in Canada.
According to its most recent quarterly report, HSBC Canada had $125 billion worth of assets as of the end of June, and posted an operating income of more than $1.1 billion in the first half of this year. HSBC has about two per cent of all the bank deposits and mortgages in Canada.
Carl De Souza, an analyst with ratings agency DBRS Morningstar says a major appeal of HSBC for Royal Bank is that the brand is so well known around the world. With Canada's immigration targets set to ramp up in the coming years, that gives RBC a leg up on all those new clients.
"The proposed acquisition does provide the bank with the opportunity to be the bank of choice for newcomers as well as commercial clients with international needs," he said in an interview. "They do see a huge opportunity for newcomers."
The deal is expected to close next year, pending regulatory and shareholder approval.
Because of the size of the merger, it needs the OK of numerous government agencies, including the Competition Bureau, the Office of the Superintendent of Financial Institutions and the Department of Finance.
"In assessing a transaction, the minister of finance may take into account such factors as the rights and interests of consumers and business customers; the impact of the transaction on the level of competition in the sector; its consequences for the stability and integrity of the financial sector and public confidence in it," the department said in a statement.
RBC buying HSBC Canada for $13.5B
HSBC has 130 branches and 4,200 full-time equivalent employees in Canada
RBC chief executive Dave McKay said the deal offers the opportunity to add a complementary business and client base.
"This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities," McKay said in a statement Tuesday.
"It will help us better serve global clients looking to invest and grow in Canada."
130 branches in Canada
"The deal makes strategic sense for both parties, and RBC will take the business to the next level," HSBC Group chief executive Noel Quinn said in a statement.
"Our group strategy is unchanged, and closing this transaction will free up additional capital to invest in growing our core businesses and to return to shareholders."
The Canadian arm of British-based HSBC has been up for sale this year because the parent company has been facing pressure from its largest shareholder, China's Ping An Insurance Group, to boost returns.
At more than $13 billion, the price tag makes the deal the most expensive one ever for a Canadian bank buying another Canadian-based bank, although the so-called Big Five routinely spend more than that on foreign acquisitions.
HSBC has had operations in Canada since 1981 and currently has approximately 130 branches and 4,200 employees.
According to its most recent quarterly report, HSBC Canada had $125 billion worth of assets as of the end of June, and posted an operating income of more than $1.1 billion in the first half of this year. HSBC has about two per cent of all the bank deposits and mortgages in Canada.
The deal is expected to close next year, pending regulatory and shareholder approval.
Because of the size of the merger, it needs the OK of numerous government agencies, including the Competition Bureau, the Office of the Superintendent of Financial Institutions and the Department of Finance.
"In assessing a transaction, the minister of finance may take into account such factors as the rights and interests of consumers and business customers; the impact of the transaction on the level of competition in the sector; its consequences for the stability and integrity of the financial sector and public confidence in it," the department said in a statement.
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