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PNC Financial Services Picks Up RBC

In a statement released Monday, banking giant ""PNC Financial Services Group"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional revealed that it had acquired troubled Canadian firm ""RBC Bank"":http://www.rbcbankusa.com/ for $3.45 billion in cash and stock, absorbing $25 billion in assets and taking over 400 branches across the southern United States.

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""The addition of ""RBC Bank"":http://www.rbcbankusa.com/ provides ""PNC"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional a great opportunity to enter attractive southeast markets in a way that will create value for our shareholders,"" says James Rohr, ""PNC's"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional chairman and CEO.

According to ""_Bloomberg News_"":http://www.bloomberg.com/news/2011-06-19/pnc-financial-said-to-pay-3-45-billion-for-royal-bank-of-canada-u-s-unit.html, ""PNC"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional anticipates $322 million in merger-related expenses, coupled with the addition of $19 billion in deposits and $16 in loans. Additionally, ""PNC"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional expects to whittle down nearly $230 million, or 27 percent, of non-interest expenses for the bank after implementing administrative and operational changes.

Owning $27.6 billion in assets, the U.S. branch for ""RBC Bank"":http://www.rbcbankusa.com/ posted losses over the past several years as the real estate market soured, according to ""_The Mobile Press-Register_"":http://blog.al.com/press-register-business/2011/04/reports_canadian_parent_trying.html. Its international operations suffered over the course of 10 quarters before getting out of the red at the start of 2011.

Gordon Nixon, ""RBC Bank's"":http://www.rbcbankusa.com/ president and CEO, said that the deal allows the institution to attend to the development of ""RBC Wealth Management"":http://www.rbcwm-usa.com/DRP_1.0/Public_Site/Home/DRP_1.0VDynamicHome/1,5034,,00.html and ""RBC Capital Markets"":https://www.rbccm.com/, its other two business operations.

Present at over 2,500 branches, ""PNC"":https://www.pnc.com/webapp/unsec/Homepage.do?siteArea=/pnccorp/PNC/Home/Corporate%20and%20Institutional maintains retail operations in 15 states and the District of Columbia, according to the Web site.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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