Network changes follow multi-billion-dollar deal
Royal Bank of Canada (RBC) has confirmed the closure of 25 HSBC Bank Canada branches following its $13.5 billion takeover, set to close next week.
The move is part of RBC's plan to optimize its branch network, company spokesperson Christine Stewart told The Canadian Press. She added that some shuttering HSBC sites are near existing RBC branches.
Customers were notified about the changes in early March. The remaining HSBC properties will reopen as RBC branches on April 1, the day after the takeover deal is expected to close on March 28.
Initially announced in November 2022, the HSBC acquisition marks a significant expansion for RBC. At that time, HSBC had around 800,000 clients, 130 branches, 4,200 employees, and a 2% market share in Canada with $130 billion in assets.
Industry experts previously expressed concerns that the deal could reduce consumer choice, as HSBC often offered more competitive borrowing costs than its rivals. Mortgage rates at the major banks were usually 20 to 80 basis points higher than HSBC's offerings.
"They were an everyday low-price lender, which is extremely valuable in the Canadian market," mortgage strategist Robert McLister said.
Read next: What's the current outlook for first-time homebuyers in Canada?
Ahead of the branch conversions, HSBC notified customers that their products, services, and balances would transition automatically to equivalent offerings from RBC. Additionally, customers were informed about the issuance of new RBC credit cards and the migration of their banking and credit card statements to RBC accounts.
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