PNC Financial Services Group Inc (PNC.N) agreed on Sunday to purchase Royal Bank of Canada's (RY.TO) U.S. retail bank operations for $3.45 billion, helping it expand in markets in the U.S. Southeast, two people familiar with the matter said on Sunday. The deal helps RBC offload a business it has struggled to make profitable and sees the largest Canadian bank by assets retreat from the U.S. retail banking market even as some of its national rivals are expanding in this country. For Pittsburgh-based PNC, the deal helps add some 420 branches in markets such as Florida, Alabama and Georgia. The purchase price represents a $112 million discount to the book value of the unit, one of the sources said. PNC is also buying a $165 million credit card portfolio from RBC, the source added.
The PNC Financial Services Group, Inc. (PNC) is a diversified financial services company in the United States. Shares of PNC fell by 2.82% or $-1.68/share to $57.79. In the past year, the shares have traded as low as $49.43 and as high as $65.19. On average, 3443380 shares of PNC exchange hands on a given day and today's volume is recorded at 10302764.
Royal Bank of Canada (RBC) is a diversified financial services company and provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services. Shares of RY traded higher by 1.46% or $0.8/share to $55.54. In the past year, the shares have traded as low as $46.04 and as high as $63.59. On average, 687925 shares of RY exchange hands on a given day and today's volume is recorded at 932137.
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