Royal Bank of Canada announced Monday that it would acquire the North American private banking business of Credit Suisse, which said in April it would leave that market.
With $1.3 billion of assets under management, the accounts would double the size of Royal Bank of Canada's U.S. private banking business, said Michael Lagopoulos, senior vice president of Royal Bank of Canada Global Private Banking.
Plans call for the consolidation of the two private banking groups' locations in Miami, New York, and Toronto, and the closing of the Swiss bank's Los Angeles and San Francisco offices. The majority of the clients there are U.S. or Latin American nationals.
The exact cost of the deal, expected to close Sept. 30 pending regulatory approval and other conditions, is unknown because payments for pieces of the business will be made over two years, Mr. Lagopoulos said. He added that Royal Bank expects to retain about 20 of the 95 Credit Suisse employees, who are eligible for bonuses if they stay.