Royal Bank of Canada (RBC) has agreed to sell two Jamaican subsidiaries, RBC Royal Bank (Jamaica) and RBTT Securities Jamaica to Sagicor Group Jamaica for an undisclosed sum.
The deal, which is subject to regulatory approvals, is anticipated to be completed in the coming months.
The financial terms of the deal were not yet disclosed.
RBC expects the deal to allow it to expand its Caribbean business to focus on regions where it has significant market share.
The transaction, which will amount to the book value of the collective Jamaican operation, is expected to incur an estimated loss of C$60 million, that stems from writing down goodwill and other intangibles acquired when purchasing RBTT in 2008.
Suresh Sookoo, CEO of RBC Caribbean, said: "Consistent with our strategy of being a competitive leader in the markets where we operate, we determined after a careful and thorough review that the best decision for the long-term future success of RBC Jamaica was to sell it to Sagicor.
"Sagicor is a well established financial franchise in Jamaica with the size, scale and complementary capabilities that RBC Jamaica does not currently possess," he added.
Dave McKay, group head, personal & commercial banking, RBC, said: "We are focused on strengthening our business performance, service and competitiveness in markets where we can be a leading competitor over the long term."