UPDATE 1-RBC eyes more U.S. expansion after City National deal

Fri Jun 17, 2016 11:39am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Would consider small acquisitions to accelerate growth

* CEO says primary strategy is to grow organically

* Sees City National profit more than doubling by 2020 (Adds comments from RBC CFO on conference call)

By Matt Scuffham

TORONTO, June 17 (Reuters) - Royal Bank of Canada plans further expansion in the United States following its $5 billion acquisition of Los Angeles-based City National in November, Chief Executive Dave McKay said on Friday.

McKay said acquiring City National gave the bank an "enormous opportunity" to grow in the U.S. and it could look at further acquisitions to supplement organic growth.

"We would consider strategic options to make small acquisitions that could help accelerate growth in the United States and provide a good payback to shareholders in a reasonable period of time," he said.

RBC sees the United States as a key growth market, offering opportunities to expand its wealth management and capital markets businesses at a faster rate than in Canada, where it already has a dominant position.

"We have invested in the California economy, which is the size of the Canadian economy, so there's enormous opportunity to grow here and clearly organic opportunity to expand into other cities using RBC's wealth management and capital markets strength to take City National there," he said.   Continued...