RBC to Hire More Bankers as Lender Completes City National Dealby
RBC to add more than 100 bankers in first half, CEO McKay says
City National to open office near RBC's in lower Manhattan
Royal Bank of Canada will hire more than 100 bankers and open another New York office as it seeks to expand newly acquired lender City National Corp., Chief Executive Officer David McKay said.
“We’re really going to significantly increase the hiring," McKay, 51, said Monday in a telephone interview from Los Angeles after the $5 billion deal was completed. “The growth plan here doesn’t require a lot of physical footprint, this is about people and growing excellent private bankers and commercial bankers."
Canada’s second-largest lender paid $2.6 billion in cash and 41.6 million in RBC shares for the Los Angeles-based bank with ties to Hollywood and the entertainment industry, adding 3,600 employees and increasing client assets in wealth and asset management to $336 billion. McKay plans to draw on City National’s private and commercial banking expertise to sell products to Royal Bank’s wealthy U.S. clientele. The Toronto-based firm’s wealth and capital-markets offices in the U.S., and eventually London, will be leveraged to "aggressively" expand City National’s reach, McKay said.
“We’re focusing on where we have the largest impact, which markets, which customer clusters we want to go after," McKay said. “We’re just itching to get going on this.”
Royal Bank will hire more than 100 more advisers in the first half of 2016 and open a City National office on Vesey Street in Manhattan near the Canadian lender’s existing RBC Capital Markets offices, McKay said. City National will be able to tap into Royal Bank’s C$1 trillion ($763 billion) balance sheet to take on larger commercial clients, he said.
“City National has an opportunity to use our capital-markets franchise to really help serve City National’s growing commercial franchise," McKay said. “We’ve been just waiting to offer those services to clients who have asked for it."