Royal Bank of Canada and Dexia BIL of Luxembourg are combining their institutional investor services in a joint venture that involves $1.8-trillion (U.S.) in client assets and 3,500 employees.
The equally owned venture is to be named RBC Dexia Investor Services, the companies said Thursday, and will rank among the world's top 10 global asset custodians.
RBC Dexia IS, a holding company, will have its headquarters in London and Marc Hoffmann, CEO of Dexia BIL and member of Dexia's executive board, will be chairman of RBC Dexia.
The CEO of the new company will be Jose Placido, currently executive vice-president of RBC Global Services.
"RBC Dexia IS clients will benefit from the size, product breadth and high touch client service of two well-respected and well-financed global banks," Mr. Hoffmann said in a release.
Mr. Placido added: "We will focus on achieving long-term growth by providing institutional investors with an integrated proposition of global custody, fund and pension administration, transfer agency and related services."
Dexia BIL, or Dexia Banque Internationale a Luxembourg, is a member of Dexia, the European banking group world leader in public finance and second-largest commercial bank in Belgium. Dexia Group, with 24,000 employees, has operations in more than 20 countries worldwide.
Founded in 1856, Dexia BIL is one of the leading banks in the Luxembourg financial centre and also the oldest bank in the Grand Duchy. It provides commercial, private banking, asset management and investor services.
The new entity's operations will be conducted mainly by RBC Dexia Investor Services Bank in Luxembourg and RBC Dexia Investor Services Trust in Canada and their respective subsidiaries and branches around the world.
Royal Bank is the sixth-largest bank in North America, as measured by total assets, and Dexia is one of the largest financial institutions in the euro zone, as measured by market capitalization.
The Canadian company employs about 60,000 people through offices in North America and some 30 countries around the world.