RBC to provide continued employment for HSBC employees for at least six months after transaction closes
The Royal Bank of Canada (RBC) has received federal approval to proceed with its acquisition of the Hongkong and Shanghai Banking Corporation (HSBC), according to the former.
Chrystia Freeland, Canada's deputy prime minister and minister of finance, approved the deal on March 21, the two banks said.
The purchase is expected to close, subject to customary closing conditions, on March 28.
“We appreciate the thorough and thoughtful approach Canada’s regulators have taken to this sale since the HSBC Group announced its strategic decision to exit the Canadian market, including public consultations and the report by the Competition Bureau,” says Noel Quinn, group chief executive, HSBC, in a press release.
“We believed that this transaction complied with competition law requirements and had faith that Canada’s authorities would follow due process and the rule of law. Canada is fortunate in that it has many strong banks operating in a highly competitive market.”
Last month, Bloomberg reported that HSBC will introduce a "target pay variable" scheme to junior staff who previously did not have specific bonus targets set. In 2022, RBC gave staff bonuses amounting to more than $20.2 million.
RBC and HSBC Canada will work together to facilitate a smooth transition to RBC for HSBC Canada's clients and employees, says RBC.
However, RBC will be closing 25 HSBC Canada branches and rebranding dozens more after its takeover deal closes next week, according to a report from The Canadian Press posted on CP24.
As of November 2022, HSBC had 4,200 employees, according to the report.
“To allow RBC and incoming HSBC Bank Canada employees an opportunity to work together, understand talent and skills, and to explore roles within RBC's organization, RBC will provide continued employment for HSBC Bank Canada employees for a minimum period of six months after the transaction closes,” says RBC.
RBC’s global banking hub to create 1,000 jobs
Meanwhile, RBC plans to build out a global banking hub in Vancouver over the next five years.
“The hub will be supported with over 1,000 jobs across multiple disciplines including those with technology skills in digital, data science, and cyber; client-facing, multilingual advisors; fraud experts; risk managers; and client credit adjudication experts,” says the bank.
RBC will also create 100 more jobs as it increases its client operations and advice centre teams in Winnipeg in Manitoba.
In January, Mark Mason, CFO of multinational bank Citigroup, said the financial institution will be laying off 20,000 employees over the next two years as it posted its worst quarter in 15 years.
