Beginning in 1899, Royal Bank had eyed Toronto with ambition but stiff competition, a scarcity of labour and the high costs of real estate had blunted its hopes. By 1912, Royal Bank's 39 Ontario branches paled in comparison to the 104 of the front running Toronto-based Traders Bank of Canada. The business strategy of the Traders Bank was unique in that its strength lay in its small-town Ontario network and its success was unduly dependent on the fortunes of agriculture. Consequently, outside of its eight Toronto branches and one Montreal branch, the Traders had little commercial exposure. Furthermore, the Traders Bank had only a smattering of branches in the West and none east of Montreal.
Sudbury branch, 1900
By 1912, the Traders Bank was in precarious shape forcing its management to seek out possible merger offers. The Traders' strength, its strong branch network, would substantially bolster Royal Bank's weak Ontario presence. The directors of both banks approved Royal Bank's offer to purchase the Traders Bank and in September 1912, the newly expanded Royal Bank now had the largest branch representation in Ontario and boasted a national network of 340 branches.
