The Canadian parent of RBC Bank is seeking buyers for the Raleigh-based lender, Bloomberg News reported, citing unnamed sources.
Royal Bank of Canada has hired investment bank JPMorgan Chase to provide advice on a potential sale, Bloomberg reported.
The recession and real-estate slump hurt financial results at RBC Bank, spurring speculation that Royal Bank might seek to sell the division and ditch its U.S. strategy.
Last month, Royal Bank reported record quarterly results, thanks partly to narrower losses at RBC Bank. RBC Bank CEO Jim Westlake said he's optimistic that the business will return to making money later this year.
Westlake's boss, Royal Bank CEO Gordon Nixon, has said previously that he wanted to improve RBC Bank's performance before considering all options, including a possible sale or expansion through further acquisitions.
RBC Bank, with about 430 branches, employs 500 people in the Triangle, mostly at its headquarters office tower in downtown Raleigh.
The company entered the United States in 2001 with its $2.1 billion purchase of Centura Banks, based in Rocky Mount. It later relocated to Raleigh and increased its marketing efforts -- including putting its name on Raleigh's sports arena.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
RBC Sends American Jobs to India
Sun, 05/08/2011 - 14:18 — survivorleagueRBC has sent 100's of American jobs to India the last couple years. I say, 'See ya later'! Keep jobs here in America! Don't believe me? Do a google search on 'IGATE RBC', and you will see!
RE: COME ON OVER BB&T
Thu, 04/07/2011 - 14:30 — DaveM28Why move your bank to Raleigh when you can put in a better place like Charlotte? Besides, BB&T wouldn't want a bank like RBC. If anything someone like TDBank or JPMorgan would buy it to expand their footprint in the Carolinas.
because 'charlotte, nc' has
Thu, 04/07/2011 - 14:40 — JoeTarheelbecause 'charlotte, nc' has done such a great job managing their banks? one of them no longer exists and the other will eventually move its headquarters to New York City. is that why its a 'better place'? unless you mean a bunch of incompetent, unemployed bankers, then yes, perhaps it is better in that respect.
Well, apparently "Raleigh,
Thu, 04/07/2011 - 19:39 — DaveM28Well, apparently "Raleigh, NC" can't manage what they have... how many quarterly profits has RBC Bank had in the last few years? The parent company wants to drop it because it's a LOSING venture. BofA has stated time and again it's not moving. Looks like Raleigh is just losing another HQ... First Progress (thanks Charlotte) and now RBC Bank. Looks like Red Hat will have another building to choose from soon enough.
Dave. you moron
Fri, 04/08/2011 - 00:52 — JoeTarheelThe difference, is 'Raleigh' does not make the decisions as it relates to RBC, the Canadians do..
The insecure Napoleon complex egomaniacs in "charlotte, NC" (yes its still part of North Carolina) never seemed to understand their their incompetent sole focus of 'being big for bigness sake' was not a strategy but a reflection of the insecurites of Hugh McColl and the "town" of charlotte, NC. As a result, the egomaniacs managed to destroy a very good Winston-Salem based bank in Wachovia while simultaneously destroying a crappy bank in First Union PLUS they have basically tee'd up Nationsbank/Bank of America to move their HQ to NYC.
Congrats 'charlotte usa'. Good job.
Let's face it, as much as charlotte is obsessed with being 'big time', it just kills the boosters that Raleigh continues to be ranked higher that them in virtually every major publication.
Come on over BB&T
Thu, 04/07/2011 - 13:40 — JoeTarheelBB&T,
Please take RBC out of the hands of the incompetent Canadians and while you are at it, please move your HQ over to Raleigh.