Royal Bank of Canada, or RBC, has moved to purchase City National Bank (CYN), known as “the bank to the stars” thanks to its ties to Hollywood, for some $5.4 billion.
“City National serves high net worth and commercial client segments in select high-growth markets, and represents a unique opportunity to complement and enhance our existing U.S. businesses and product offering,” said RBC Chief Executive Dave McKay, in a statement on Thursday.
City National has total assets of $32.6 billion and offices in five states, while RBC’s current wealth management operations in the United States some $280 billion in assets under administration and about 2,000 advisors. RBC Wealth includes RIA custody and broker-dealer clearing businesses.
“City National’s private banking and wealth management capabilities will enable us to offer a broader product suite to the 340,000 U.S. households served by our U.S. Wealth Management unit,” McKay explained.
Following the closing of the deal, RBC plans to combine its U.S. Wealth Management unit with City National. These operations will be led by City National Chairman and CEO Russell Goldsmith, who has served as City National’s CEO since 1995.