RBC DEXIA INVESTOR SERVICES will rank among top 10 global custodians
LUXEMBOURG and TORONTO, June 9, 2005 ' Dexia and Royal Bank of Canada
(RBC) today announced they have reached an agreement to combine their institutional
investor services businesses in an equally owned joint venture to be named RBC
Dexia Investor Services (RBC Dexia IS), pending regulatory and other approvals.
The new company, with approximately US$1.8 trillion in client assets under custody
(representing combined parent AUC), will rank among the world's top 10
global custodians and will offer a complete range of investor services to institutions
around the world.
Under the terms of the joint venture agreement, RBC and Dexia, through its
wholly owned subsidiary Dexia Banque Internationale à Luxembourg (Dexia
BIL), will each own an equal share of the new company, resulting in net tangible
equity of EUR500 million. RBC Dexia IS, a holding company that will be headquartered
in London, U.K., will provide strategic direction and management oversight to
the operating companies.
Marc Hoffmann, CEO of Dexia BIL and member of the Dexia Executive Board, will
be Chairman of RBC Dexia IS. The CEO of the new company will be José
Placido, currently Executive Vice-President of RBC Global Services, who is responsible
for institutional investor services. Operations will be conducted mainly by
RBC Dexia Investor Services Bank in Luxembourg and RBC Dexia Investor Services
Trust in Canada and their respective subsidiaries and branches around the world.
RBC Dexia IS will benefit from the reputation of its parent companies, both
respected financial services enterprises with strong credit ratings (Moody's
Aa2 senior debt for both organizations). RBC is a leading financial services
provider in Canada and sixth-largest bank in North America, as measured by total
assets, and Dexia is one of the largest financial institutions in the euro zone,
as measured by market capitalization.
'RBC Dexia IS clients will benefit from the size, product breadth and
high touch client service of two well-respected and well-financed global banks,'
The combination of a leading global custodian known for best-in-class client
service with a leading European player in global custody, fund administration
and transfer agency services creates a unique proposition for sophisticated
institutional investors worldwide.
'We are excited by what RBC Dexia IS can provide for our current and
future clients,' Placido added. 'We will focus on achieving long-term
growth by providing institutional investors with an integrated proposition of
global custody, fund and pension administration, transfer agency and related
services. Our local presence on four continents will provide the scale and expertise
to meet the needs of global asset managers.'
The transaction is expected to close by early 2006. The new structure will
have 3,500 employees and operations in 15 countries. 'During the transition
period, we will maintain consistent, uninterrupted service to our clients,'
'RBC Dexia IS is expected to continue producing growth and value for
both parent companies by using greater scale to attract new business, improve
operational efficiency and generate synergies resulting from cross-selling,'
'Both RBC and Dexia are committed to this business and look forward
to seeing RBC Dexia IS succeed as a strong global competitor,' said Gordon
M. Nixon, President and CEO of RBC Financial Group. 'We believe this
joint venture is the best way for us to ensure that we can continue to grow
to meet the complex needs of our clients effectively.'
'We have been very supportive since the idea originated,' said Pierre Richard,
President and CEO of Dexia Group. 'We consider the strong commitment of both
parent groups to institutional investor services as an essential condition for
RBC Dexia Investors Services' long term growth.'
About Dexia and Dexia BIL
Dexia Banque Internationale à Luxembourg (Dexia BIL) is a member of Dexia,
the European banking group world leader in public finance and second largest
commercial bank in Belgium. Dexia Group, with 24,000 employees, has operations
in more than 20 countries worldwide. Dexia BIL provides commercial, private
banking, asset management and investor services.
Founded in 1856, Dexia BIL is not only one of today's leading banks
in the Luxembourg financial centre; it is also the oldest bank in the Grand
Duchy. Since it was founded, it has played an active role in shaping the development
of Luxembourg's economy. For more information, please visit www.dexia.com
and www.dexia-bil.lu .
About Dexia Fund Services
As a business line of Dexia BIL, Dexia Fund Services (DFS) is a key provider
in Europe and Asia in the fields of global custody, trustee and administration
of investment funds, pension funds and managed accounts. Its wholly owned subsidiary
First European Transfer Agent (FETA) offers transfer agency and distribution
support to a wide array of mutual funds promoters and distributors.
DFS provides global investment fund servicing -ranging from core services such
as fund accounting and global custody services, to related added value services
(e.g. securities lending, cash management, universal ordering, performance measurement
and attribution) designed to reduce risks while improving efficiency and performance.
FETA has developed a fully integrated business system that delivers complete
solutions, and has the biggest pool of third party retail Tranfer Agent-related
expertise in Europe.
Dexia Fund Services and FETA have operational centers in Luxembourg, Dublin,
Paris, Brussels, Zürich, Madrid, Barcelona, Milan, Amsterdam, Singapore,
Hong Kong and the Cayman Islands.
For more details please visit www.dexiafundservices.com
Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC as a prefix for its
businesses and operating subsidiaries, which operate under the master brand
name of RBC Financial Group. Royal Bank of Canada is Canada's largest
bank as measured by assets, and is one of North America's leading diversified
financial services companies. It provides personal and commercial banking, wealth
management services, insurance, corporate and investment banking, and transaction
processing services on a global basis. The company employs approximately 60,000
people who serve more than 12 million personal, business and public sector clients
through offices in North America and some 30 countries around the world. For
more information, please visit www.rbc.com.
About RBC Global Services
RBC Global Services offers specialized transaction processing services to business,
commercial, corporate, and institutional clients in domestic and select international
markets. Key businesses include: global custody, investment administration,
correspondent banking, cash management, payments and trade finance. With more
than US$1.4 trillion in client assets under custody, it is a leading provider
of securities services worldwide and Canada's largest custodian. It is
also a leading provider of treasury management services providing a full suite
of electronic cash management services. RBC Global Services facilitates a high
volume of domestic and international payment services for clients around the
world, and is the largest processor of Canadian dollar payments in Canada. It
has specialists in London, Dubai, Singapore, Beijing, Sydney, Mexico City, New
York and across Canada.
Françoise Lefebvre / 00 33 1 43928020 firstname.lastname@example.org
Ulrike Pommée / 0032 2 222 4401 / email@example.com / firstname.lastname@example.org
Beja Rodeck, RBC Financial Group, 416-974-5506, email@example.com
Helen Jed, RBC Global Services, 44-20-76534463, firstname.lastname@example.org
Thomas Guittet / + 33 1 43 92 80 34 / email@example.com
Peter De Baere / + 32 2 213 57 46 / firstname.lastname@example.org
Nabanita Merchant, RBC Financial Group, 416-955-7803
Dave Mun, RBC Financial Group, 416-955-7808
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed to be forward-looking
statements under certain securities laws, including the “safe harbor”
provisions of the United States Private Securities Litigation Reform Act of
1995, and Dexia and RBC intend that such forward-looking statements be subject
to the safe-harbor created thereby.
By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that predictions,
forecasts, projections and other forward-looking statements will not be achieved.
We caution readers not to place undue reliance on these statements as a number
of important factors could cause our actual results to differ materially from
the beliefs, plans, objectives, expectations, anticipations, estimates and intentions
expressed in such forward-looking statements. These factors include, but are
not limited to, the strength of the Canadian and United States economies and
the economies of other countries in which we conduct business; the impact of
the movement of the Canadian dollar relative to other currencies, particularly
the US dollar; the effects of changes in monetary policy, including changes
in interest rate policies of the Bank of Canada and the Board of Governors of
the Federal Reserve System in the United States; the effects of competition
in the markets in which we operate; the impact of changes in the laws and regulations
regulating financial services and enforcement thereof (including banking, insurance
and securities); judicial or regulatory judgments and legal proceedings; our
ability to obtain accurate and complete information from or on behalf of our
customers and counterparties; our ability to successfully realign our organizational
structure, resources and processes; our ability to complete strategic acquisitions
and to integrate our acquisitions successfully; the changes in accounting policies
and methods we use to report our financial condition, including uncertainties
associated with critical accounting assumptions and estimates; operational and
infrastructure risks; and other factors that may affect future results including
changes in trade policies, timely development and introduction of new products
and services, changes in tax laws, technological changes, unexpected changes
in consumer spending and saving habits; the possible impact on our businesses
of international conflicts and other developments including those relating to
the war on terrorism; and our anticipation of and success in managing the foregoing
risks. We caution that the foregoing list of important factors is not exhaustive.
Dexia and RBC assume no obligation to update the forward-looking statements
contained in this press release.