Seeking Alpha

RBC agrees to sell Jamaican operations

  • Royal Bank of Canada (RY -0.8%) will book an estimated loss of C$60M on the sale which is expected to be finalized in the coming months.
  • "Consistent with our strategy of being a competitive leader in the markets where we operate, we determined after a careful and thorough review that the best decision for the long-term future success of RBC Jamaica was to sell it."
  • Press release
Comments (4)
  • dunnhaupt
    , contributor
    Comments (983) | Send Message
     
    The Caribbean has traditionally been the territory of the Bank of Nova Scotia which established its first branch in Kingston, Jamaica, in 1889 -- 125 years ago! It must have been difficult for another Canadian bank to make inroads on the island.
    29 Jan 2014, 11:37 AM Reply Like
  • Agent Graves
    , contributor
    Comments (146) | Send Message
     
    The Royal Bank had branches in the Caribbean before they had one in Toronto.
    "RBC’s roots began when a group of merchants from Halifax, Nova Scotia who were engaged in the thriving sea-going trade between Halifax and the West Indies formed the Merchant's Bank in 1864. The bank's first venture south was Bermuda in 1882, followed by Cuba in 1899. By 1914, the Bank's international network included Puerto Rico, Bahamas, Trinidad, Jamaica, Dominican Republic, Barbados, British Honduras (now Belize) and Grenada."

     

    Funny story: When Che Guevara seized all of the banks in Cuba during the revolution, the RBC played hardball and were the only bank to get paid a settlement.
    29 Jan 2014, 11:42 AM Reply Like
  • canb888
    , contributor
    Comments (472) | Send Message
     
    One more example where Canadian banks get beaten up when they go to the US or International. Oligopoly domestic market is so good that they are not competitive outside Canada. But RY is okay as 68% of it's revenues are in Canada, and the rests are 50/50 between USA and International where return is much lower consistently compared to their return in their Canadian business.
    29 Jan 2014, 12:33 PM Reply Like
  • romilar
    , contributor
    Comments (708) | Send Message
     
    Just waiting for the right opportunity to put this stock back in my portfolio. I am likewise keeping close watch on POT for an add on ....Rom
    29 Jan 2014, 10:45 PM Reply Like
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