Canada’s Office of the Superintendent of Financial Institutions approved PNC to take deposits and offer lending, credit and trust management services for domestic firms and U.S. companies operating in the country, PNC said today in a statement. PNC Canada was established as a commercial lending foreign bank branch in Toronto in 2001, the Pittsburgh-based company said.
“Canada is America’s largest trading partner today,” Mike Lyons, executive vice president and head of corporate and institutional banking at PNC, said in the statement. “We are better serving our customers by expanding PNC services in Canada and addressing their cross-border financing and banking needs.”
PNC, the sixth-biggest U.S. commercial bank by assets, is following the lead of some larger peers including Wells Fargo & Co. The biggest U.S. mortgage lender said it added bankers in Canada in November 2012 to increase its equipment-financing and capital-finance operations.
PNC will provide more services to existing clients as they expand and isn’t looking to compete with large Canadian firms, said George Hoffman, senior vice president of the global treasury management group.
“There has to be some kind of tie-back to the U.S. market,” Hoffman said in an interview.
The bank will be hiring and seeking other opportunities in Canada, he said.
“We do see additional fees that we can generate from the transactional services,” Hoffman said.
PNC’s principal Canada office is in Toronto, and it has locations in Calgary, Montreal and Vancouver. PNC Canada deposits aren’t insured by the Canada Deposit Insurance Corp., PNC said in the statement.
To contact the reporter on this story: Elizabeth Dexheimer in New York at firstname.lastname@example.org