International banking giant HSBC has confirmed its withdrawal from the Canadian market and the sale of its entity HSBC Bank Canada to the Royal Bank of Canada (RBC) in a $13.5 billion all-cash deal.
HSBC Bank Canada offered premium banking services to personal and commercial clients, with a particular focus on globally-connected clients.
Under the terms of the agreement, RBC will acquire 100% of the common shares of HSBC Canada, and all of HSBC Canada’s earnings from June 30, 2022 through close will accrue to RBC
This latest development greatly strengthens RBC’s already-dominant position in the Canadian retail and commercial banking markets.
In a prepared statement, RBC President and CEO Dave McKay said: “HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service. This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities. It will help us better serve global clients looking to invest and grow in Canada.”
As at September 30, 2022, HSBC Canada had $134 billion in total assets. It operated 130 branches and had an employee headcount of over 4,200.