RBC completes acquisition of Ally's Canadian automotive finance business

RBC completes acquisition of Ally's Canadian automotive finance business 
TORONTO, Feb. 1, 2013 /CNW/ - Royal Bank of Canada (TSX:RY) (NYSE:RY) today 
announced it has completed the acquisition of the Canadian automotive finance 
and deposit business of Ally Financial Inc. ("Ally Canada") for a $1.4 billion 
investment net of excess capital. Including the excess capital and after 
certain closing adjustments, the total consideration paid was $3.7 billion. 
The acquisition positions RBC as a leader in the Canadian automotive financing 
business. 
"Ally Canada significantly expands the scope and capability of our existing 
consumer and commercial auto financing business and we're encouraged by the 
positive response from dealers who want to continue building their business 
with RBC," said Dave McKay, Group Head, Personal & Commercial Banking, RBC. 
"We've gained a quality and stable business with strong industry relationships 
that creates a leading auto financing business in Canada." 
The Ally Canada team joins the existing RBC team to form RBC Automotive 
Finance, a part of the Personal and Commercial Banking segment of RBC. It 
provides financial services, including floor plan financing, directly to auto 
dealers and also offers financing for consumers through dealerships. 
Building on its commitment to the automotive business, RBC is now a partner 
with General Motors of Canada to provide subvented loans to its customers, 
adding to the bank's existing agreements with other leading auto 
manufacturers. Subvented loans are low rate consumer auto loans subsidized by 
the manufacturer. 
About RBC 
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under 
the master brand name RBC. We are Canada's largest bank as measured by assets 
and market capitalization, and among the largest banks in the world, based on 
market capitalization. We are one of North America's leading diversified 
financial services companies, and provide personal and commercial banking, 
wealth management services, insurance, investor services and wholesale banking 
on a global basis. We employ approximately 80,000 full- and part-time 
employees who serve more than 15 million personal, business, public sector and 
institutional clients through offices in Canada, the U.S. and 49 other 
countries. For more information, please visit rbc.com. 
CAUTION REGARDING FORWARD-LOOKING STATEMENTS 
Certain statements contained in this press release may be deemed to be 
forward-looking statements under certain securities laws, including the "safe 
harbor" provisions of the United States Private Securities Litigation Reform 
Act of 1995 and any applicable Canadian securities legislation. These 
forward-looking statements include, but are not limited to, statements about 
the expected impact of the acquisition of the Canadian automotive finance and 
deposit business of Ally Financial Inc. by Royal Bank of Canada and other 
statements other than in relation to historical facts. Forward-looking 
statements are typically identified by words such as "believe", "expect", 
"foresee", "forecast", "anticipate", "intend", "estimate", "goal", "plan" and 
"project" and similar expressions of future or conditional verbs such as 
"will", "may", "should", "could", or "would". 
By their very nature, forward-looking statements require us to make 
assumptions and are subject to inherent risks and uncertainties, which give 
rise to the possibility that our predictions, forecasts, projections, 
expectations or conclusions and other forward-looking information, including 
statements about the acquisition of the Canadian automotive finance and 
deposit business of Ally Financial Inc. by Royal Bank of Canada will not be 
achieved. We caution readers not to place undue reliance on these statements 
as a number of risk factors could cause our actual results to differ 
materially from the expectations expressed in such forward-looking statements. 
These factors include, but are not limited to the impact of changes in the 
laws and regulations regulating financial services and enforcement thereof; 
general business, economic and market conditions in Canada, the United States 
and certain other countries in which Canada and Ally Financial Inc. operate; 
the effects of competition in the markets in which Royal Bank of Canada and 
Ally Financial Inc. operate; judicial or regulatory judgments and legal 
proceedings; Royal Bank of Canada's ability to complete the integration of the 
Canadian automotive finance and deposit business of Ally Financial Inc. 
successfully; and other factors that may affect future results of Royal Bank 
of Canada and the Canadian automotive finance and deposit business of Ally 
Financial Inc. including timely development and introduction of new products 
and services, Royal Bank of Canada's ability to cross-sell more products to 
customers and technological changes. 
We caution that the foregoing list of important factors is not exhaustive. 
Additional information about these and other factors can be found in our 2012 
Annual Report to Shareholders. Our material general economic assumptions 
underlying the forward-looking statements in this press release are set out in 
our 2012 Annual Report under the heading "Overview and Outlook" and for each 
business segment under the heading "Outlook and priorities". Except as 
required by law, Royal Bank of Canada assumes no obligation to update the 
forward-looking statements contained in this press release. 
Media Contacts: Kerry Gaetano, Head, Corporate Communications, Personal & 
Commercial Banking and  Insurance, 905 816-5583 or 647 281-2931 Matt 
Gierasimczuk, Senior Communications Manager, Corporate Communications, 416 
974-2124 
Analyst Contacts: Robert Colangelo, Associate Director, Investor Relations, 
416 955-2049 
SOURCE: RBC 
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CO: RBC Royal Bank
ST: Ontario
NI: FIN MNA  
-0- Feb/01/2013 12:58 GMT
 
 
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