Jul 2014 Financial News

Sale of RBC J’ca to Sagicor completed

Jul 03, 2014

TORONTO—Royal Bank of Canada has completed the previously announced sale of RBC Royal Bank (Jamaica) Ltd and RBTT Securities Jamaica Ltd (collectively “RBC Jamaica”) to Sagicor Group Jamaica Ltd.

RBC will record a further loss on sale of its operations of approximately C$37 million before and after tax, which includes an unrealized loss on foreign currency translation (C$45 million as at April 30, 2014).

The bank said in a release: “The net loss is subject to change and will be reflected in the results for the third quarter ending July 31, 2014. RBC will release its third quarter 2014 results and host an earnings conference call on August 22, 2014.”

The price agreed is J$9.5 billion—the current book value for the Jamaican business.

In an interview earlier this year, Sagicor Group CEO Richard Byles said the transaction was being financed from internal sources.

The sale, when concluded, is expected to nearly quadruple the assets of subsidiary Sagicor Bank Jamaica Limited, from J$21 billion to around J$78 billion, and grow its small network of six branches to 19.

Sagicor Bank is currently the second smallest of seven in Jamaica's commercial banking arena, with three per cent of industry assets.

The price agreed is J$9.5 billion—the current book value for the Jamaican business.
In an interview earlier this year, Sagicor Group CEO Richard Byles said the transaction was being financed from internal sources.


Source:
Trinidad Guardian, A28
Thursday July 3, 2014