Royal Bank of Canada Plans UK Commercial Banking Push, But Rules Out For This Business

Royal Bank of Canada RY is reportedly planning a push into the U.K.’s commercial banking market through acquisition and will look for opportunities to expand wealth management.
Chief executive Dave McKay told the Financial Times that he was keen to expand into commercial banking.
“What we have in the U.S., that we don’t have in the UK, is a strong commercial banking capability,” McKay said. “That’s really the core of City National Bank, a strong commercial private bank. We would like to replicate that model [in the UK].”
RBC’s Brewin Dolphin deal shows the bank’s ambitions in U.K. wealth management. “It vaults us to third-largest wealth manager in the UK, behind St James’s Place and Rathbones,” McKay said.
McKay said RBC could also look at smaller wealth management deals in Britain. “Once we get the [Brewin Dolphin] integration well along the way, we will look for opportunities to acquire other smaller players and put them on the platform,” he added.
However, McKay ruled out entering UK retail banking. “We have no ambition to be a digital retail bank, or a physical retail bank, outside of Canada,” he said.
Price Action: RY shares are down 0.10% at $90.72 during the premarket session on the last check Tuesday.