PNC Financial Agrees to Buy 420 Branch RBC U.S. Unit for $3.5B
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PNC Financial Agrees to Buy 420 Branch RBC U.S. Unit for $3.5B

PNC Financial has agreed to buy the U.S. banking division of the Royal Bank of Canada for $3.5 billion. It marks a retreat for the bank even as other Canadian banks look to expand south of the border.

PNC Financial has agreed to buy the U.S. banking division of the Royal Bank of Canada for $3.5 billion. It marks a retreat for the bank even as other Canadian banks look to expand south of the border.

RBC U.S., based in Raleigh, NC has more than 420 branches  concentrated in the Southeast. It has $27 billion in assets. Financially, RBC U.S. has a Texas Ratio of 34.11%, which is above the national average of 22.56%. Based on FDIC data from the quarter ending March 31, 2011 it also has a return of equity of -5.96%. RBC U.S. suffered from the mortgage mess that has afflicted many banks across the country and its parent bank in Canada was eager to divest the business. For PNC, it offers a way to expand into a region it has little presence.

For those of you who have accounts at RBC U.S. the deal is expected to be completed in March 2012.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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