Royal Bank of Canada has appointed Michael Armstrong as chief executive officer of its U.S. wealth management division.MARK BLINCH/Reuters
Royal Bank of Canada has appointed Michael Armstrong as chief executive officer of its U.S. wealth management division, completing a makeover of the division's top ranks as RBC embarks upon an ambitious U.S. expansion strategy that aims to double the profit generated from the region.
He replaces John Taft, who retires from RBC at the end of this month.
Mr. Armstrong comes from Jefferies & Co., where he served as global head of wealth management. Previously, he held senior positions at Morgan Stanley, overseeing its wealth management global capital markets business and heading its private wealth management division.
At RBC, he will lead 4,700 employees from RBC Wealth Management-U.S.'s head office in Minneapolis.
Mr. Armstrong's arrival marks the third major move within RBC's U.S. wealth management operations within the past six months. Mr. Armstrong will report to Russell Goldsmith, CEO of City National Bank, who now oversees wealth management in the U.S. after RBC purchased the Los Angeles-based private and commercial bank in November for $5-billion (U.S.).
In March, RBC appointed Tom Sagissor as president of its U.S. wealth management division.
The moves come as RBC turns to the U.S. for growth opportunities, given the country's relatively strong economic activity and the prospect there for rising interest rates (a definite plus for many financial firms, including City National).
Dave McKay, RBC's CEO, often refers to the U.S. as the bank's second home market, and he has identified expansion there as one of the lender's three key strategies – and arguably the most ambitious following the City National acquisition.
"The acquisition of City National Bank, a highly regarded private and commercial bank, was the largest strategic move in our history and positions us well for growth in some of the most dynamic U.S. centres," Mr. McKay said at RBC's shareholder meeting in April.
He noted that City National generated more than $100-million (Canadian) of additional profit in its first quarter, adding to the $1-billion in profit that RBC generated in the U.S last year. Mr. McKay believes that RBC can double its U.S. annual profit within five to seven years.
David Berman