More than 400 RBC (Royal Bank of Canada) branches in the US are converting into Pittsburgh National Corporation banks today.

PNC bought the US banking operations of RBC for $3.45 billion. Photo by Henji Milius

Although this acquisition removes RBC’s footprint in the US market, business will continue.

“RBC is launching a new RBC platform in the US - RBC Bank (Georgia) - a virtual, online bank,” said Suzanne Willer, for RBC’s corporate communications.

“RBC Bank (Ga), will continue to deliver integrated Canadian and U.S. banking capabilities to serve clients’ needs on both sides of the border.”

Wall Street Journal’s online reporters Anupreeta Das and Dan Fitzpatrick, explaining RBC’s initial market entry, said “RBC, which entered the U.S. market in 2001 with the $2.2 billion purchase of North Carolina-based Centura Banks Inc, is exiting from a business that has lost money for several straight quarters.”

“The retail bank was pummelled by the collapse of the U.S. real-estate market, forcing RBC to take a $1 billion write-down,” the report said.

Because RBC failed to turn into a profitable business, its banks are closing in the US.

“U.S. retail banking has proved to be a headache for RBC right from the start,” wrote Tara Perkins and Grant Robertson in an article for the Globe and Mail.

This Friday marks the final purchase date with PNC’s biggest single conversion in the bank’s 160-year history.  

Most of PNC’s business is done in the Southeast region of the US and Florida.

“With RBC Bank, PNC expands to more than 2,900 branches in 19 states plus the District of Columbia with access to 7,100 ATMs nationwide,” Pat McMahon of PNC’s Corporate Communications department told the dailyplanet.

By Monday morning 900,000 customers are set to transition into the PNC bank system.

The Pittsburgh-based PNC financial services group was listed as the ninth largest bank in the US last year.

---

Add this page to your favorite Social Bookmarking websites

| More...