RBC makes management changes following HSBC takeover

TORONTO — Royal Bank of Canada is making changes to its leadership team and splitting its personal and commercial banking division into two groups following its acquisition of HSBC Bank Canada earlier this year.

The bank said on Thursday that the changes, which will come into effect on September 1, will allow it to better leverage the scale of its operations and speed up decision-making.

With the acquisition of HSBC Canada in late March, RBC added about 780,000 customers and 4,500 employees, bringing its total customer base to more than 15 million.

The leadership shakeup comes just over a decade after CEO Dave McKay took over, raising questions about when he might step down from the top job.

However, McKay said in a statement that he was energized by the prospect of working with the new management team “in the years to come.”

“Their unique skills, experiences and perspectives will prove invaluable as we move forward,” he said.

The bank announced that Doug Guzman, currently head of RBC Wealth Management and Insurance, will become vice chairman of RBC.

Neil McLaughlin, currently Group Head of Personal and Commercial Banking, will become Group Head of RBC Wealth Management.

Erica Nielsen, currently vice president of personal finance products, will become group head of RBC Personal Banking, while Sean Amato-Gauci, currently vice president of corporate financial services, will become group head of RBC Commercial Banking.

The bank also announced that Jennifer Publicover has been named group head of RBC Insurance, joining the group’s leadership team. Publicover has been CEO of RBC Insurance since 2023.

Jefferies analyst John Aiken said the changes underline the bank’s strength, but the role of the chief financial officer remains uncertain.

“We are surprised by the lack of resolution regarding the bank’s CFO position following announcements in which Katherine Gibson continues to maintain that she is ‘interim,’” he wrote in the note.

RBC fired former Chief Financial Officer Nadine Ahn in April following an investigation into her alleged personal relationship with another employee and appointed Gibson to the position on an interim basis.

Aiken said the management changes could increase speculation about the CEO succession, but he did not expect any immediate announcements about McKay’s departure.

This report by The Canadian Press was first published July 11, 2024.

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