December
12, 2019 (Toronto, Canada)
— Royal
Bank of Canada (RY on TSX and NYSE) today announced it has entered
into definitive agreements to sell all banking operations in the
Eastern Caribbean to a consortium of indigenous banks within the
region. The transaction is subject to regulatory approval and other
customary closing conditions, 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, RBC is always evaluating opportunities for our business.
Earlier this year, we were approached by a consortium of indigenous
banks with their proposal to acquire all RBC Eastern Caribbean
operations,” said Rob Johnston, Head, RBC Caribbean Banking. “After
a review of our operations and strategy, we determined this
opportunity was a good decision for the long-term future success of
RBC Caribbean, and also, that it aligned with our vision to help our
clients thrive and communities prosper,” he said.

The
sale encompasses the branches of Royal Bank of Canada in Antigua,
Dominica, Montserrat, St. Lucia, and St. Kitts and Nevis, as well as
regional businesses operating under RBC Royal Bank Holdings (EC)
Limited in
Nevis, Grenada and St. Vincent and the Grenadines. Collectively,
these operations are referred to as “RBC Eastern Caribbean”. The
consortium of five financial entities purchasing includes: 1st
National Bank of St. Lucia, Antigua Commercial Bank Ltd., National
Bank of Dominica Ltd., the Bank of Montserrat and Bank of Nevis Ltd.

Johnathan
Johannes, Managing Director, 1st
National Bank of St. Lucia, shared, “We formed the consortium for
the express purpose of expanding the scale of the locally owned
financial entities in the Eastern Caribbean Currency Union. This
transaction gives us the size and scale to play a more active role in
the development of our respective countries. We see this transaction
as the first step in achieving even greater synergies, efficiencies
and cross-territory marketing opportunities.”

“RBC
has operated in the Caribbean for more 100 years – longer than we
have been in many parts of Canada. We remain committed to the future
of the Caribbean and to a vision of digital innovation that
transcends traditional services,” said Johnson. “This transaction
will allow us to realign and focus our strategy on Caribbean markets
where we can achieve that vision most successfully."

“Self-determination
is the highest level of empowerment – and the indigenous banks
acquiring this business will now have an increased opportunity to
influence the development of their communities,” said Johnston.

Johannes
added, “And speaking on behalf of the local banks, we embrace and
eagerly anticipate that opportunity.”

The
consortium was advised by PwC (JA), led by Wilfred Baghaloo, who
added “this transaction demonstrates that Caribbean countries and
businesses have the capacity and capability to come together when
the circumstances are right.”

Financial
terms of the transaction were not disclosed. RBC will release its
first quarter 2020 results and host an earnings conference call
on February 21, 2020.

ABOUT
RBC IN THE CARIBBEAN

With
more than 100 years of dedicated service to the region, RBC has
maintained a presence in 17 countries, with 52 branches and over
3,200 employees serving more than one million clients. As one of the
Caribbean’s leading diversified financial services companies, RBC
provides personal and commercial banking, wealth management,
corporate and investment banking, insurance and trust and asset
management services to a wide range of clients, including
individuals, small businesses, general commercial entities, regional
and multi-national corporations and governments. For more
information, please visit rbc.com/caribbean.

ABOUT
RBC

Royal
Bank of Canada is a global financial institution with a
purpose-driven, principles-led approach to delivering leading
performance. Our success comes from the 85,000+ employees who bring
our vision, values and strategy to life so we can help our clients
thrive and communities prosper. As Canada’s biggest bank, and one
of the largest in the world based on market capitalization, we have a
diversified business model with a focus on innovation and providing
exceptional experiences to our 17 million clients in Canada, the U.S.
and 34 other countries. Learn more at rbc.com.

We
are proud to support a broad range of community initiatives through
donations, community investments and employee volunteer activities.
See how at https://www.rbc.com/community-social-impact/index.html

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