Royal Bank of Canada (RBC) has signed agreements to divest its operations in the Eastern Caribbean to local banks.
The move is part of its plan to focus on the core markets and shed non-core operations.
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The businesses will be acquired by 1st National Bank of St. Lucia, Antigua Commercial Bank, National Bank of Dominica, the Bank of Montserrat and Bank of Nevis.
However, the financial details of the transaction were not divulged by the company.
The scope of divestment includes RBC branches in Antigua, Dominica, Montserrat, St. Lucia, and St. Kitts and Nevis. The Canadian lender will also shed its regional businesses operating under RBC Royal Bank Holdings (EC) in Nevis, Grenada and St. Vincent and the Grenadines.
RBC Caribbean Banking head Rob Johnston said: “Consistent with our strategy of being a competitive leader in the markets where we operate, RBC is always evaluating opportunities for our business.
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By GlobalData“Earlier this year, we were approached by a consortium of indigenous banks with their proposal to acquire all RBC Eastern Caribbean operations.
“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.”
The divestment is expected to close in the coming months, subject to regulatory approval and other customary closing conditions.
Earlier this month, RBC reported a 4% year-on-year increase of its net income to C$12.9bn in fiscal year 2019. Revenue across the group also jumped 8% to C$46bn.
