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Royal Bank of Canada
Royal Bank of Canada

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RBC eyed Ally Canada from the get-go

RBC couldn’t get its hands on ING Bank of Canada this summer, but chief executive officer Gord Nixon said that’s no problem because the Canadian arm of Ally Financial is “the one that we really wanted.”

To win the auction, RBC had to offer a net purchase price of $1.4-billion.

RBC already has an auto lending business, but Dave McKay, RBC’s head of Canadian banking, acknowledged on a conference call that his bank’s market share was “solid number two or three” with receivables worth $14-billion. By adding $9-billion of receivables from Ally, RBC will become the leading auto lender in Canada.