'We can't wait to close this': HSBC takeover will bring significant cost savings, says RBC chief

Dave McKay says bank aims to consolidate work on both sides of border to save money

Royal Bank of Canada chief executive Dave McKay says he is eager for his bank’s takeover of HSBC’s Canadian operations to close so they can begin an integration that he expects will lead to significant cost savings.

“Creating a global centre of business in Vancouver … was really important to us because we’re looking at consolidating work from the U.S. into Canada to save on costs,” McKay told a bank CEO conference held by RBC Capital Markets on Jan. 9.

The deal to buy HSBC Canada, first announced in November 2022, represents the largest acquisition in Royal Bank’s history, and gives it the chance to expand its domestic operations with HSBC’s $120 billion in assets, including wealth management, personal and commercial banking. HSBC Canada is also known for its low-mortgage rate offerings, and questions about whether they will survive in the wake of the acquisition still linger.

While regulatory approval of the transaction was delayed, RBC now “can’t wait to close this and get on with it,” McKay said, calling the deal good for Canada, HSBC employees and HSBC clients.

More to come …

• Email: dpaglinawan@postmedia.com

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