RBC completes acquisition of RBTT
Deal creates new Caribbean banking leader
PORT OF SPAIN/TORONTO, June 16, 2008 — Royal Bank
of Canada (RY on the TSX and NYSE) today announced it has
completed its acquisition of the RBTT Financial Group (RBTT)
for a purchase price of approximately TT$13.7 billion (US$2.2
billion). This historic transaction creates one of the most
expansive banking networks in the Caribbean, with a presence
in 18 countries and territories across the region. With more
than US$13.7 billion in assets, the combined operations will
have 130 branches across the Caribbean, with 7,000 employees
serving more than 1.6 million clients.
"The completion of this transaction affirms RBC's position
in the Caribbean region and advances our strategy to continue
to grow our banking operations outside Canada," said
Jim Westlake, RBC's head of International Banking and Insurance.
"RBTT's network complements our Caribbean retail banking
RBC's expanded Caribbean retail banking operations will ultimately
be headquartered in Trinidad and Tobago.
"The combination of these two organizations is all about
growth and expansion, which creates new opportunities for
our stakeholders," said Peter July, RBTT Group Chairman.
"It has brought enhanced value to our shareholders who,
in addition to receiving a premium for their RBTT shares,
can now invest in one of the most stable and successful banking
entities in the world."
In the coming months, Suresh Sookoo, RBTT Group CEO and Ross
McDonald, RBC's current head of Caribbean banking, will share
responsibility for leading a smooth transition. Senior management
from both organizations will be integrated, and Sookoo will
become CEO of RBC's Caribbean retail banking operations, following
the successful integration of the two operations.
"We are excited about the opportunities the transaction
provides clients and employees of both companies," McDonald
"This deal creates a significantly larger organization
that is better positioned to serve all our customers, who
will benefit from expanded market coverage, the increased
lending capacity of the combined banks, and an expanded range
of products," Sookoo added.
The acquisition marks RBC's return to Trinidad and Tobago,
where it had maintained operations from 1902 to 1987. RBC
has been working with the regulatory agencies to explore the
possibility of issuing depositary receipts backed by RBC common
shares on the Trinidad and Tobago Stock Exchange.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name of RBC. We are Canada's
largest bank as measured by assets and market capitalization
and one of North America's leading diversified financial services
companies. We provide personal and commercial banking, wealth
management services, insurance, corporate and investment banking
and transaction processing services on a global basis. Our
corporate support team enables business growth with expert
professional advice and state-of-the art processes and technology.
We employ approximately 75,000 full- and part-time employees
who serve more than 16 million personal, business, public
sector and institutional clients throughout offices in Canada,
the U.S. and 45 other countries around the world. For more
information, please visit www.rbc.com.
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(416) 974-5506, toll-free 1-888-880-2173, firstname.lastname@example.org
(242) 356-8516, email@example.com
RBTT Financial Group
Port of Spain
(868) 623-1322 ext. 2449, firstname.lastname@example.org
For general investor relations information please visit:
(868) 623-1322 ext. 2449, email@example.com
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be
deemed to be forward-looking statements under certain securities
laws, including the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act
of 1995 and in any applicable Canadian securities legislation,
and Royal Bank of Canada (RBC) and RBTT Financial Holdings
Ltd. (RBTT) intend that such forward-looking statements be
subject to the safe-harbor created thereby. The words "may,"
"could," "should," "would,"
"suspect," "outlook," "believe,"
"plan," "strategy," "opportunity,"
"anticipate," "estimate," "expect,"
"intend," "forecast," "objective"
and words and expressions of similar import are intended to
identify forward-looking statements.
By their very nature, forward-looking statements involve
numerous assumptions, and inherent risks and uncertainties,
both general and specific, and risks exist that predictions,
forecasts, projections and other forward-looking statements,
including statements about growth in the Caribbean and the
potential issuance of the deposit receipts, will not be achieved.
We caution readers not to place undue reliance on these statements
as a number of important factors could cause our actual results
to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed
in such forward-looking statements. These factors include,
but are not limited to the possibility that the anticipated
benefits of the transaction are not realized as a result of
such things as the strength of the economy and competitive
factors in the areas where RBTT does business; the impact
of changes in the laws and regulations regulating financial
services and enforcement thereof (including banking, insurance
and securities); judicial judgments and legal proceedings;
RBC's ability to integrate RBTT with RBC successfully; reputational
risks, and other factors that may affect future results of
RBC and RBTT, including changes in trade policies, timely
development and introduction of new products and services,
changes in tax laws, and technological and regulatory changes. We caution that the foregoing list of important factors
is not exhaustive. Additional information about these and
other factors can be found in our Q2 2008 Report to Shareholders
and in our 2007 Annual Report to Shareholders.
Except as required by law, Royal Bank of Canada and RBTT
assume no obligation to update the forward-looking statements
contained in this press release.