The Globe and Mail reports in its Thursday, Dec. 1, edition that rival banks are targeting HSBC Bank Canada's talent and corporate clients as the takeover by Royal Bank of Canada waits for approval. The Globe's Andrew Willis and James Bradshaw write that the Big Six banks got a look at HSBC Canada's operations during a two-month sales process that ended Tuesday with RBC's announcement of a $13.5-billion acquisition. Headhunters and executives at rival lenders say the five banks that missed out on the big win are now fighting for a consolation prize, in the form of HSBC employees and client relationships. RBC paid a premium price for the Canadian arm of HSBC Holdings because the division earns dependable profits -- $717-million in net income last year -- on the back of affluent individual clients, along with its ability to link corporate Canada to HSBC's global network. When it comes to retail operations, RBC's Neil McLaughlin said the sales process revealed that HSBC Canada's mortgage holders tend to be wealthier than RBC's clients. He said RBC also found out 90 per cent of HSBC Canada's customer relationship managers have been with the bank for five years or more, building deep ties with the bank's 770,000 clients.
© 2023 Canjex Publishing Ltd. All rights reserved.