Topic: How To Invest

The Successful Investor Hotline – Friday, August 30, 2024

Article Excerpt

ROYAL BANK OF CANADA, $162.98, Toronto symbol RY, is a buy. On March 28, 2024, Royal completed its purchase of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion. HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally. It also provides banking and wealth management services to about 780,000 retail clients. In all, it had total assets of $134 billion. Royal is now converting most of those HSBC branches to its own banner. HSBC clients will also receive new accounts and credit cards. In all, the bank expects it will cost $1.5 billion to integrate the new operations. So far, eliminating overlapping operations have cut $120 million from Royal’s annual costs. It still expects to realize annual cost savings of $740 million by the end of the second year. Meantime, in its fiscal 2024 third quarter, ended July 31, 2024, Royal’s revenue rose 12.7%, to $14.63 billion from $12.98 billion a year…