HSBC sells Canadian banking operations to Royal Bank of Canada for $10.1b

The bank expects to generate an estimated pre-tax gain of $5.7b.

HSBC is selling its Canadian banking operations to the Royal Bank of Canada or RBC for $10.1b (CA$13.5b), according to a press announcement.

From the deal, HSBC expects to generate an estimated pre-tax gain of around $5.7b, and will see a boost of 130 basis points in its common equity tier 1 ratio.

The deal is subject to regulatory and government approvals.

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“HSBC Canada is a high performing and profitable bank, with strong leadership and exceptional people. I am grateful to the whole team for their hard work in supporting our clients over many years,” said Noel Quinn, HSBC Group Chief Executive.

“The deal makes strategic sense for both parties, and RBC will take the business to the next level. We look forward to working closely with RBC’s leadership team to ensure a smooth transition for our clients and colleagues,” Quinn added.