MONTREAL, Aug. 1, 2013 /CNW Telbec/ - National Bank of Canada ("National
Bank") and The Toronto-Dominion Bank ("TD"), through subsidiaries, have
entered into an agreement providing for the acquisition by National
Bank of TD's institutional services business known as TD Waterhouse
Institutional Services.
Like National Bank's Correspondent Network ("NBCN"), TD Waterhouse
Institutional Services is a leader in the provision of back-office
solutions, including custody, trading, clearing, settlement and record
keeping, for independent Canadian based registered portfolio managers
and introducing brokers.
The purchase price for the acquisition is $250 million, subject to a
price adjustment mechanism based on asset retention. The transaction is
expected to increase National Bank's 2014 and 2015 recurring EPS by
$0.12 and $0.14, respectively, assuming full benefit of the acquisition
in fiscal year 2014. National Bank estimates the transaction will
reduce its Common Equity Tier 1 ratio under Basel III rules by
approximately 40 basis points. National Bank expects its Common Equity
Tier 1 ratio to remain above 8% following closing of the transaction.
Closing is expected to occur later this year, subject to receipt of
required regulatory approvals and other transaction terms and
conditions.
"Our Correspondent Network is today a leader in Canada's wealth
management landscape as a provider of services which support over 140
independent market intermediary portfolio managers, brokers and
dealers, who collectively serve over 350,000 client accounts and manage
client assets of over $50 billion. Through this acquisition, we will
extend our reach by adding over 260 additional market intermediaries
who serve over 130,000 client accounts and manage approximately $34
billion in assets," said Luc Paiement, Co-President and Co-Chief
Executive Officer, National Bank Financial and Executive Vice-President
-Wealth Management.
"I am confident our clients and our employees will continue to prosper
under the stewardship of National Bank," said Mushtak Najarali, Senior
Vice President, TD Waterhouse Institutional Services. "TD Waterhouse
Institutional Services was established in 1987 and since that time has
grown to become a leading provider of complete back-office solutions
and support services for registered independent portfolio managers and
introducing brokers across Canada. This acquisition will also provide
National Bank an outstanding team of employees who have served our
clients with professional excellence and outstanding commitment."
Conference call
The conference call regarding this acquisition will take place on
Thursday, August 1, 2013 at 1:30 p.m. EDT.
-
Access via telephone in a listen-only mode: 1-866-862-3930 or
416-695-7806 (access code is 8792518#).
-
Live Internet broadcast of the conference call will also be accessible
at www.nbc.ca/investorrelations.
Rebroadcast of conference call
The conference call recording will be available until September 2, 2013
by dialing 1-800-408-3053 or 905-694-9451 (access code is 5345523#).
About National Bank of Canada
With $185 billion in assets as at April 30, 2013, National Bank of
Canada (www.nbc.ca), together with its subsidiaries, forms one of Canada's leading
integrated financial groups, and was named among the 20 strongest banks
in the world by Bloomberg Markets magazine. The Bank has close to
20,000 employees and is widely recognized as a top employer. Its
securities are listed on the Toronto Stock Exchange (TSX: NA). Follow
the Bank's activities via social media and learn more about its
extensive community involvement at clearfacts.ca and commitment.nationalbank.ca.
About National Bank Correspondent Network
With more than 20 years of continuous service, National Bank
Correspondent Network is an important provider of wholesale securities
processing in Canada and continually redefines the industry through
innovative product development, expert client care and leading
technology. National Bank Correspondent Network provides execution,
clearing, custody, prime brokerage and administrative services to
Independent Securities firms and Portfolio Managers. The team is
dedicated to giving our clients the very best of service and the
breadth of investment choices necessary to build a successful practice.
Forward‐Looking Statements
Certain statements included in this press release constitute
forward-looking statements meant for its interpretation and shouldn't
be used for other purposes. These forward‐looking statements are made
as of the date of this document. There is a strong possibility that
express or implied projections contained in these forward-looking
statements will not materialize or will not be accurate. The Bank
recommends that readers not place undue reliance on these statements,
as a number of factors, many of which are beyond the Bank's control,
could cause actual future results, conditions, actions or events to
differ significantly from the targets, expectations, estimates or
intentions expressed in the forward-looking statements. These factors
include, without limitation, the ability to attract and retain key
employees who will support the acquired institutional services
business, including certain senior management of the acquired
institutional services business; the ability to complete the conversion
of the client records, systems and operations supporting the acquired
business within anticipated time periods and costs; the retention of
substantially all of the clients of the acquired institutional services
business following the closing; together with general factors such as
credit risk, market risk, liquidity risk, operational risk, regulatory
risk, and reputation risk, (all of which are described in greater
detail in the Risk Management section that begins on page 57 of the
Bank's 2012 Annual Report available at www.sedar.com); the general economic environment and financial market conditions in
Canada, changes in the accounting policies the Bank uses to report its
financial condition, including uncertainties associated with
assumptions and critical accounting estimates; tax laws in Canada; and
changes to capital and liquidity guidelines and to the manner in which
they are to be presented and interpreted.
The Bank assumes no obligation to update or revise these forward-looking
statements to reflect new events or circumstances and cautions readers
not to place undue reliance on them.
SOURCE: National Bank of Canada
