After a two-year wait and a fight with critics, Canada’s biggest bank swallowed its seventh-largest rival. Royal Bank of Canada announced on 28 March 2024 that it had completed the acquisition of HSBC Bank Canada, a C$13.5 billion purchase, about $9.96 billion at the time. HSBC, selling from London, said the completion would bring a gain it estimated at $4.9 billion for the first quarter of 2024.
For RBC chief executive Dave McKay, the day ranked with any in the bank’s long life. “Today marks one of the most exciting times of our 155-year history and a pivotal milestone in our long-term growth story as we welcome 4,500 employees and 780,000 clients from HSBC Canada,” he said, adding: “This once-in-a-generation opportunity will show Canadians how our combined organization will deliver an enhanced banking experience, create better value for clients and strengthen our communities. I want to thank everyone involved in the monumental team effort to bring this deal to life and I look forward to the possibilities this acquisition will deliver.”
The strategic logic ran through the quote: “RBC’s acquisition of HSBC Canada expands the depth and breadth of our international banking capabilities and builds our ability to connect Canadians to the global economy,” said Neil McLaughlin, group head of Personal & Commercial Banking. “Through this combination, RBC is now exceptionally positioned as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities.”
The deal had not gone quietly. The merger, the largest in RBC’s history, drew opposition from environmental campaigners, anti-monopoly advocates and conservatives alike, warned about concentrating an already tight industry and the risk of higher fees for consumers. No Canadian bank had attempted anything of this scale since the early 1990s, when regulators blocked RBC’s bid for Bank of Montreal.
To win approval, RBC had laid out commitments in December 2023: creating new Canadian jobs, continuing to donate 1% of pre-tax net income to communities, and financing new housing construction across Canada. In Vancouver, it also promised a new Global Banking Hub to rise over the following five years, supported by more than 1,000 jobs across multiple disciplines.
Mechanics came next. With the closing done, conversion activities began, and HSBC Canada’s branches and offices were set to open their doors on the Monday after, 1 April 2024, as RBC locations. The buyer, already Canada’s biggest bank and one of the world’s largest by market value, counted more than 17 million clients across Canada, the United States and 27 other countries, served by over 94,000 employees before the 4,500 arrivals from HSBC Canada.
