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This transaction further confirms National Bank Correspondent Network's
leadership position by adding 260 market intermediaries, $35 billion of
assets under administration and 130,000 end-clients to its book of
business
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The acquisition marks another major step in National Bank's expansion of
its wealth management platform across Canada
MONTREAL, Nov. 12, 2013 /CNW Telbec/ - Following receipt of all required
regulatory approvals, National Bank of Canada ("National Bank" or the
"Bank") (TSX: NA) today announced the completion of its acquisition of
TD's institutional services business known as TD Waterhouse
Institutional Services (TDWIS). This business will be integrated into
National Bank's Correspondent Network ("NBCN"), which is Canada's
largest provider of custodial, trading, clearing, settlement and record
keeping services to independent registered portfolio managers and
introducing brokers.
Building on its large existing client base, NBCN will be servicing over
400 independent market intermediaries across the country who
collectively manage or administer $85 billion for almost one-half
million Canadian investors once the TDWIS business is brought on board.
This acquisition greatly extends NBCN's reach, further confirming its
status as the clear leader in this growing and important segment of the
securities industry.
"This transaction is another major step in the implementation of
National Bank's strategy of expanding across Canada by broadening the
footprint of our wealth management platform" said Luc Paiement, Executive Vice President, Wealth Management,
Co-President and Co-CEO of National Bank Financial. "It will add considerable scale to our operations and, in the process,
bring a number of appreciable benefits to all National Bank wealth
management clients in the form of new products and services".
"In the last few months we have met with many of our new clients, and
are very pleased with the trust and confidence they have shown by
joining us. We are committed to delivering to them the same industry
leading service and support we have been providing NBCN's clients with
for the past 20 years." said Patrick Primerano, Co-CEO of NBCN. "We are proud that all 64 TDWIS employees to whom we made offers have
accepted them, and we look forward to welcoming them into our NBCN team
of professionals."
This transaction is accretive to National Bank's bottom line, adding
$0.12 of earnings per share for fiscal 2014 and $0.14 for fiscal 2015,
assuming the full benefit of the acquisition is realized in fiscal
2014. As a result of the acquisition, National Bank's Basel III Common
Equity Tier 1 ratio will be reduced by approximately 40 basis points as
at National Bank's quarter ending January 31, 2014. Client conversion
is expected to be completed in the 8 months following the closing of
the transaction, and a transition services agreement will be in place
in the interim.
About National Bank of Canada
With $187 billion in assets as at July 31, 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
At the service of its clients for more than 20 years, National Bank
Correspondent Network has become Canada's largest provider of
custodial, trading, clearing, settlement and record keeping services to
independent registered portfolio managers and introducing brokers by
continually redefining the industry through innovative product
development, expert client care and leading technology. NBCN's team is
dedicated to giving its clients the very best 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