RBC sells Eastern Caribbean banks to consortium

A RBC branch on Park Street, Port of Spain.
A RBC branch on Park Street, Port of Spain.

Royal Bank of Canada has signed a deal to sell its banking operations in the Eastern Caribbean to a consortium of indigenous banks in the region, the international financial services group announced on Thursday.

The agreement includes branches in Antigua and Barbuda, Dominica, Grenada, Montserrat, St Lucia, and St Kitts and Nevis and St Vincent and the Grenadines.

The terms of the deal or the consortium were not disclosed in the RBC statement. However, The Canadian Press reports the acquiring consortium of five financial entities 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.

The Canadian Press also reports that the operations in Nevis, Grenada and St Vincent and the Grenadines are currently held under RBC Royal Bank Holdings (EC) Limited.

Rob Johnston, head of RBC Caribbean Banking, said the company was approached by the consortium with the proposal earlier this year.

“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 in a statement.

Eastern Caribbean governments have rebuffed efforts by regional financial giants, such as TT's Republic Bank group which has been in talks with another Canadian banking group, Scotiabank, to acquire its branches in similar territories. Guyana has also refused to grant Republic Bank prefer to take over Scotiabank's branches there expressing concerns the TT group would monopolise the financial services sector.

Antigua and Barbuda PM Gaston Browne has openly said he preferred indigenous firms to acquire the holdings foreign companies have in local institutions.

RBC's network includes TT where it has downsized branches and staff as it promotes full-time online banking.

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