TORONTO — Royal Bank of Canada is making changes to its executive suite and splitting its personal and commercial banking division into two groups following its acquisition of HSBC Bank Canada earlier this year.
The bank said Thursday that the changes, effective Sept. 1, better position it to take advantage of its scale and speed up decision making.
RBC added some 780,000 customers and 4,500 employees with the acquisition of HSBC Canada at the end of March, brining its total customer base to over 15 million.
The leadership shuffle also comes a little over a decade after chief executive Dave McKay took on the role, raising some questions over when he might step away from the top job.
But McKay said in a statement that he's energized by the opportunity to work with the new leadership roster "in the coming years."
"The unique skills, experiences and perspectives they bring to the table will be invaluable as we embark on our next phase of growth," he said.
The bank says Doug Guzman, currently group head of RBC Wealth Management and Insurance, will become RBC's deputy chair.
Neil McLaughlin, currently group head of Personal and Commercial Banking, will become group head of RBC Wealth Management.
Erica Nielsen, currently executive vice-president of personal financing products, will become group head of RBC Personal Banking, while Sean Amato-Gauci, currently executive vice-president of business financial services, will become group head of RBC Commercial Banking.
The bank also says Jennifer Publicover has been named group head of RBC Insurance, and will join the group executive leadership team. Publicover has been CEO of RBC Insurance since 2023.
Jefferies analyst John Aiken said the changes highlight the bank's bench strength, but that the CFO role remains a question.
"We are surprised that there was no resolution on the bank’s CFO position in conjunction with the announcements with Katherine Gibson still retaining the 'interim' tag," he said in a note.
RBC fired former CFO Nadine Ahn in April following an investigation into a personal relationship she allegedly had with another employee and named Gibson to the role on an interim basis.
Aiken said the executive shuffles may increase speculation on CEO succession, but he doesn't anticipate any immediate announcements on McKay's departure.
This report by The Canadian Press was first published July 11, 2024.
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