RBC, which has vowed to focus more on areas where it can achieve critical mass of business, has agreed to sell a Caribbean business unit.

Europe-based SMP Partners Group has agreed to acquire Royal Bank of Canada’s trust, custody and fund administration businesses in the Caribbean.

The size of the financial transaction wasn’t disclosed in a statement issued yesterday by SMP Partners Group and Royal Bank of Canada.
 
“This acquisition will establish our presence in the Caribbean region and further extend our global network,” Steve McGowan, SMP Partners group chairman, said. 
 
SMP Partners is wholly owned by its management and headquartered in the Isle of Man. It provides trust, fund and corporate administration with offices in the Isle of Man, Switzerland, Hong Kong and Dubai.

The disposal of the business by RBC comes in the wake of its announcement last year that it is focusing on certain core activity where it believes it can achieve critical mass. Similar moves are being made by a number of other banks, such as HSBC, which have shrunk their number of booking centres and cut back some operations.

In 2014 RBC announced that it was building a more focused and scalable wealth management business.
 
The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in a few months.