Topic: How To Invest

The Successful Investor Hotline – Thursday, March 28, 2024

Article Excerpt

ROYAL BANK OF CANADA, $136.62, Toronto symbol RY, is a buy. The bank expects to complete its $13.5-billion purchase of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) next week. To put that amount in context, Royal’s market cap (the total value of all outstanding shares) is $191.1 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 plans to convert most of those HSBC branches to its own banner. HSBC clients will also receive new accounts and credit cards. In all, the bank now expects it will cost $1.5 billion to integrate the new operations. However, it expects to realize annual cost savings of $740 million by the end of the second year. Excluding HSBC integration costs and other unusual items, Royal will probably earn $11.31 a share in the fiscal…