Royal Bank of Canada Reviews Asia Wealth Business After Changes

(Bloomberg) -- Royal Bank of Canada has undertaken a strategic review of its Asian wealth operations following management changes in the region, Chief Executive Officer David McKay said.

McKay declined to say whether the Toronto-based bank is seeking a buyer for the business, though previous retreats in international wealth management have come after reviews were initiated.

“We always do strategic reviews, particularly given that we’ve got a new team there and we’re looking at implementing some new ideas," McKay, 53, said Friday in a telephone interview from Toronto. “We’ve got a strong client base in two key markets -- Hong Kong and Singapore -- and it’s just part of the normal planning process."

In June, Royal Bank appointed Peter Corry to head the region’s wealth-management business, which includes Hong Kong and Singapore offices that serve wealthy and ultra-rich clients. About 17 percent of Royal Bank’s C$879 billion ($671 billion) of wealth assets under administration are from the U.K., Channel Islands and Asia, according to financial supplements.

Reuters, citing four unidentified people familiar with the matter, reported earlier Friday that the firm had placed its Asian wealth business under review, which could result in a sale.

“We’re committed to the market irrespective of some of the news that’s out there today," McKay said, adding the bank wanted to see how the management changes “play out.”

Royal Bank has retreated from wealth management in some international markets in the past four years to focus on expanding in the U.S. and maintaining its share in Canada. The lender sold its Swiss private bank in 2015 after earlier shutting its Caribbean wealth-management business. It also closed some international advisory and private-banking groups in the U.S. and exited Latin America.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net.

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net, David Scanlan at dscanlan@bloomberg.net, Steven Crabill, Steve Dickson

©2017 Bloomberg L.P.