PARIS and TORONTO, July 3,
2023 /PRNewswire/ -- Today CACEIS, subsidiary of the Crédit
Agricole group and Santander, and Royal Bank of Canada (RBC) announced completion of the sale
by RBC and purchase by CACEIS of the European asset servicing
activities of RBC Investor Services and its associated Malaysian
centre of excellence.
This transaction, which has received all required regulatory and
antitrust approvals, combines two strong asset servicing operations
in Europe.
With this transaction, CACEIS gains broader international
coverage and an expanded offering for all its clients. Covering the
entire value chain, CACEIS is strengthening its leading position in
European asset servicing.
CACEIS' acquisition of the business of the UK branch of RBC
Investor Services Trust and RBC Investor Services business in
Jersey is expected to take place in the coming months, subject to
the receipt of the necessary regulatory approvals.
The results of the sold operations have a de minimis impact to
RBC's common equity Tier 1 (CET1) ratio and earnings per share
(EPS).
The transaction excludes RBC Investor Services' Canadian
operations.
Jean-Pierre Michalowski, CEO
of CACEIS, commented: "This deal further strengthens
CACEIS' leadership position as a front-running asset servicing
player. I believe that the staff who are joining us are proud to be
part of our group. Together we will construct the benchmark for the
sector in Europe. With motivated
individuals all working collectively to serve our clients, we are
on the right track."
Francis Jackson, CEO of RBC
Investor Services, added: "We are incredibly proud of
the business we have built in Europe and pleased that both clients and
employees of our business will benefit from being part of what is
expected to become one of the largest asset servicing providers in
Europe. We believe the
complementary services, combined scale and joint expertise of RBC's
Investor Services' European business and CACEIS will bring more
opportunity for employees and greater value for clients."
About CACEIS
CACEIS is the asset servicing banking group of Crédit Agricole
S.A. and Santander dedicated to asset managers, insurance
companies, pension funds, banks, private equity and real estate
funds, brokers and corporate clients. Through offices across
Europe, North and South America, and Asia, CACEIS offers a broad range of services
covering execution, clearing, forex, securities lending, custody,
depositary and fund administration, transfer agency, fund
distribution support, middle office outsourcing and issuer
services. With assets under custody of €4.1 trillion and assets
under administration of €2.2 trillion, CACEIS is a European leader
in asset servicing and one of the major players worldwide (figures
as of 31 December 2022).
www.caceis.com
About RBC
Royal Bank of Canada is a
global financial institution with a purpose-driven, principles-led
approach to delivering leading performance. Our success comes from
the 98,000+ employees who leverage their imaginations and insights
to bring our vision, values and strategy to life so we can help our
clients thrive and communities prosper. As Canada's biggest bank and one of the largest
in the world, based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn
more at rbc.com.
We are proud to support a broad range of community initiatives
through donations, community investments and employee volunteer
activities. See how at rbc.com/community-social-impact.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of certain securities laws, including the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995 and any applicable Canadian
securities legislation, with respect to RBC's and CACEIS' financial
performance, beliefs, plans and expectations. Forward-looking
statements in this press release may include, but are not limited
to, statements with respect to plans for the combined operations of
CACEIS and RBC Investor Services, the anticipated timing of CACEIS'
acquisition of the business of the UK branch of RBC Investor
Services Trust and RBC Investor Services business in Jersey, the
financial, operational and capital impacts of the transaction, our
strategies or future actions, and our objectives and commitments.
The forward-looking information contained in this press release is
presented for the purpose of assisting the holders of our
securities and financial analysts in understanding the transaction
and may not be appropriate for other purposes. Forward looking
statements are typically identified by words such as "believe",
"expect", "foresee", "forecast", "anticipate", "intend",
"estimate", "goal", "commit", "target", "objective", "plan" and
"project" and similar expressions of future or conditional verbs
such as "will", "may", "might", "should", "could" or
"would".
By their very nature, forward-looking statements require us
to make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not be
correct and that our actual results may differ materially from such
predictions, forecasts, projections, expectations or
conclusions.
We caution readers not to place undue reliance on these
statements as a number of risk factors could cause our actual
results to differ materially from the expectations expressed in
such forward-looking statements. These factors – many of which are
beyond our control and the effects of which can be difficult to
predict – include, but are not limited to: the possibility that the
anticipated benefits from the transaction, such as delivering scale
and covering the entire value chain, are not realized in the time
frame anticipated or at all as a result of changes in general
economic and market conditions, interest and exchange rates,
monetary policy, laws and regulations (including changes to capital
requirements) and their enforcement, and the degree of competition
in the geographic and business areas in which RBC Investor Services
and CACEIS currently operate; the risk that any announcements
relating to the combination could have adverse effects on the
market price of the common stock of RBC; the possibility that the
business of RBC Investor Services and CACEIS may not perform as
expected or in a manner consistent with historical performance; the
ability to promptly and effectively integrate RBC Investor
Services; our ability to achieve our capital targets; our ability
to cross-sell more products to customers; reputational risks and
the reaction of RBC Investor Services' customers and employees to
the transaction; diversion of management time on
integration-related issues; increased exposure to exchange rate
fluctuations; material adverse changes in economic and industry
conditions; general competitive, economic, political and market
conditions; and other risks discussed in the risk sections of RBC's
2022 Annual Report and the Risk management section of RBC's Q2 2023
Report to Shareholders, all of which outline certain key factors
and risks that may affect our future results and our ability to
anticipate and effectively manage risks arising from all of the
foregoing factors.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. When relying on our forward-looking statements to make
decisions with respect to us, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Material economic assumptions underlying the
forward-looking statements contained in this press release are set
out in the Economic, market and regulatory review and outlook
section and for each business segment under the Strategic
priorities and Outlook sections in RBC's 2022 Annual Report, as
updated by the Economic, market and regulatory review and outlook
section of RBC's Q2 2023 Report to Shareholders.
Any forward-looking statements contained in this document
represent the views of RBC and CACEIS only as of the date hereof.
Except as required by law, neither RBC nor CACEIS undertakes to
update any forward-looking statement, whether written or oral, that
may be made from time to time by us or on our behalf.
CONTACT: RBC, Europe:
Janita Hung, +44 7548 311 208,
janita.hung@rbc.com; Canada:
Ylana Kurtz, 416 348 2330,
ylana.kurtz@rbc.com; RBC Investor Relations, Asim Imran, 416 955 7804, asim.imran@rbc.com;
CACEIS, Claude Michaux, +352 47 67
27 92, claude.michaux@caceis.com
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