RBC to sell its Jamaican banking operations

 TORONTO, Jan. 29, 2014 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today  announced that it has entered into a definitive agreement to sell RBC Royal  Bank (Jamaica) Limited and RBTT Securities Jamaica Limited (collectively "RBC  Jamaica") 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.  "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," said Suresh Sookoo, CEO of RBC Caribbean. "Sagicor is a well  established financial franchise in Jamaica with the size, scale and  complementary capabilities that RBC Jamaica does not currently possess."  "RBC has operated in the Caribbean for over 100 years and remains committed to  this 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," said Dave McKay, group head, Personal & Commercial  Banking, RBC. "We are focused on strengthening our business performance,  service and competitiveness in markets where we can be a leading competitor  over the long term."  While financial terms of the transaction were not disclosed, the purchase  price approximately reflects the book value of RBC Jamaica. RBC expects the  transaction to result in an estimated loss of C$60 million (before and  after-tax) as a result of International Financial Reporting Standards, largely  related to an estimated writedown 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. The transaction is not expected  to have a material impact on RBC's Basel III Common Equity Tier 1 ratio.  The loss is based on current estimates and is subject to change and will be  reflected in the results of the first quarter ending January 31, 2014. RBC  will release its first quarter 2014 results and host an earnings conference  call on February 26, 2014.  About RBC Royal Bank of Canada (RY on TSX and NYSE) is Canada's largest bank and one of  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 capital markets products and services on a global basis.  We employ approximately 79,000 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 44 other countries. For more  information, please visit rbc.com.  Forward-Looking Statements Certain statements contained in this press release may be deemed to be  forward-looking statements within the meaning of certain securities laws,  including the "safe harbour" 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 with respect to the loss relating to the sale of RBC  Jamaica expected to be reflected in our first quarter 2014 financial results.  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 will not prove to be accurate, that our  assumptions may not be correct and that our forward-looking statements,  including statements about the loss relating to the sale of RBC Jamaica  expected to be reflected in our first quarter 2014 financial results, 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 - many of which are beyond our control and the  effects of which can be difficult to predict - include: credit, market,  liquidity and funding, insurance, regulatory compliance, operational,  strategic, reputation and competitive risks and other risks discussed in the  Risk management and Overview of other risks sections of our 2013 Annual  Report; the impact of regulatory reform; the business and economic conditions  in Canada, the United States and certain other countries in which we operate;  the effects of changes in government fiscal, monetary and other policies; and  judicial or regulatory judgments and legal proceedings.  We caution that the foregoing list of risk factors is not exhaustive and other  factors could also adversely affect our results. When relying on our  forward-looking statements to make decisions with respect to us, investors and  others should carefully consider the foregoing factors and other uncertainties  and potential events. Material economic assumptions underlying the forward  looking statements contained in this press release are set out in the Overview  and outlook section and for each business segment under the heading Outlook  and priorities in our 2013 Annual Report. Additional information about these  and other factors can be found in the Risk management and Overview of other  risks sections of our 2013 Annual Report. Except as required by law, we do not  undertake to update any forward-looking statement contained in this press  release.    SOURCE  RBC  Investor Relations Contacts: Karen McCarthy, Director, Investor  Relations,karen.mccarthy@rbc.com, 416-955-7809 Robert Colangelo, Associate  Director, Investor Relations,robert.colangelo@rbc.com, 416-955-2049  Media Relations Contacts: Wojtek Dabrowski, Director,  Communications,wojtek.dabrowski@rbc.com, 416-974-3718  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/January2014/29/c5790.html  CO: RRYIR ST: Ontario NI: FIN