Here are some key takeaways from the article about Canadian finance in 2024:
Bank Mergers and Acquisitions
- RBC closed its $13.5 billion acquisition of HSBC Canada in March, taking on approximately 780,000 customers, 4,500 employees, and $108.5 billion in assets.
- The acquisition eliminated a dynamic player in the mortgage space, but banks maintain that rate competition remains fierce.
Bank Profits and Market Capitalization
- RBC’s market capitalization rose by almost 30% to $246 billion as of the last Friday of the year.
- Royal Bank is now Canada’s largest company by market cap, ahead of Shopify at around $199 billion and TD Bank Group at $133 billion.
Regulatory Developments
- The federal government moved forward with regulations capping the maximum legal interest rate lenders can charge at 35% on an annual percentage rate (previously 48%).
- New restrictions will be placed on payday loans as part of these regulations.
Banking Scandals and Controversies
- TD Bank Group was fined for its role in allowing criminals to launder more than $965 million in illicit drug profits through its branches.
- RBC’s former chief financial officer Nadine Ahn sued the bank for wrongful dismissal, revealing personal details about her relationships with colleagues.
Environmental, Social, and Governance (ESG) Issues
- Canada’s five biggest banks provided approximately US$104 billion in fossil fuel funding in 2023, a decline from previous years.
- RBC committed to tripling its renewable energy funding to $15 billion by 2030.