The Royal Bank of Canada is the latest international bank to pull up stakes and exit the Eastern Caribbean, the third such financial institution to do so in 2019.
On Thursday (Dec 12) RBC issued a release announcing it has entered into definitive agreements to sell all banking operations in the Eastern Caribbean, and that the sale encompasses the branches of Royal Bank of Canada in Antigua, Dominica, Montserrat, St. Lucia, and St. Kitts and Nevis, as well as regional businesses operating under RBC Royal Bank Holdings (EC) Limited in Nevis, Grenada and St. Vincent and the Grenadines.
The RBC operations are being sold to a consortium of indigenous banks within the region comprised of the Bank of Nevis, 1st National Bank of St. Lucia, Antigua Commercial Bank Ltd., National Bank of Dominica Ltd., and the Bank of Montserrat.
Head of RBC Caribbean Banking Rob Johnston said the bank was approached by the consortium with a proposal to acquire all RBC Eastern Caribbean operations and “After a review of our operations and strategy, we determined this opportunity was a good decision for the long-term future success of RBC Caribbean, and also, that it aligned with our vision to help our clients thrive and communities prosper.”
The transaction is subject to regulatory approval and other customary closing conditions, and is expected to be finalized in the coming months.
The 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.
On November 1 the Bank of Nova Scotia completed the sale of its banking operations in Anguilla, Dominica, Grenada, St. Lucia, St. Maarten, St. Vincent & the Grenadines and St. Kitts and Nevis to Republic Financial Holdings Limited (“RFHL”), a financial group based in Trinidad & Tobago.
Also in November the Canadian Imperial Bank of Commerce agreed to sell two-thirds of its Caribbean banking unit CIBC FirstCaribbean to GNB Financial Group Ltd., a company run by Colombian billionaire Jaime Gilinski for $797 million.
While the government of Antigua and Barbuda blocked the sale of the Scotia Bank there, it has given the sale of RBC its blessing.
Antigua Commercial Bank General Manager, Joanna Charles assured depositors and employees that there are no plans for any immediate changes to the operation of the business/branches that the bank is acquiring. It was reported by Antigua Observer that RBC employees would receive full severance.
Freedom FM understands that the Eastern Caribbean Central Bank is once again overseeing the approval and transfer process in its territories as it relates to the RBC acquisition.