Royal Bank of Canada is prepared to make acquisitions valued up to C$5 billion as it seeks to expand its wealth-management unit, RBC CEO, Janice Fukakusa, said.
"We’re not betting the bank, so they would be bite-sized (deals)," said Fukakusa at a financial-services conference in New York.
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RBC is looking to add capacity in asset management on the equity side "given where the fixed-income cycle is", Fukakusa said.
"The size is anywhere from the US $500 million range up to US $2 billion, so they’re pretty manageable acquisitions," Fukakusa added.
RBC has been actively expanding its wealth management business through takeovers such as the acquisition of UK wealth manager BlueBay Asset Management in 2010 for approximately US$1.5 billion.
"We’re looking at expanding some of our product capability and distribution capability in markets where we have a lower presence," Fukakusa added.
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By GlobalDataPBI reported on the 12 of June about speculation RBC where bidding for UK based asset management firm Scotish Widow Investment Partnership, which is owned by Lloyds Banking group.
According to RBC’s financial statements, wealth management added 11% to the Toronto-based lender’s profit during the first six months of 2013.
