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.
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.
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
Investor Relations Contacts: Karen McCarthy, Director, Investor
Relations,firstname.lastname@example.org, 416-955-7809 Robert Colangelo, Associate
Director, Investor Relations,email@example.com, 416-955-2049
Media Relations Contacts: Wojtek Dabrowski, Director,
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