National Bank of Canada announces sale of its U.S. secured-based lending business to PNC Financial Services Group
Montreal, 15 November 2001 -
National Bank of Canada (TSE : NA) announced today that it has reached a definitive agreement to sell, at an overall premium of 6% before restructuring costs, its secured-based lending operations to PNC Financial Services Group, one of the largest diversified financial services organization in the U.S., headquartered in Pittsburgh, PA.
This transaction will see PNC acquiring approximately US $1.6 billion in loans outstanding. National Bank of Canada will also enter into an 18-month servicing agreement with PNC for the remaining portfolio. As a result, National Bank of Canada is exiting the US secured-based lending market.
"In accordance with our strategic priorities, this transaction enables National Bank to concentrate on its core competencies of retail banking, wealth management and the SME market in Canada. Changes in the US economic marketplace, dominated by larger specialists and full service regional banks have encouraged us to refocus our attention and efforts to our fields of expertise", said Réal Raymond, President and Chief Operating Officer of the National Bank of Canada.
The transaction is expected to close during the first fiscal quarter of 2002. Excluding the transaction gain, the sale of the US secured-based lending business will be neutral on National Bank's 2002 earnings.
The agreement also provides for National Bank to continue to finance its Canadian commercial and corporate clients in the US.
Conference Call information
Rebroadcast of Conference Call
- An analyst conference call will take place this afternoon, November 15, 2001 at 5:30 p.m. ET.
- Access via telephone #: 416-695-5806 / 1-800-273-9672.
- Retail investors and media can join the conference call in a listen-only mode.
- A live Internet broadcast of the conference call will also be accessible via the Internet at www.nbc.ca/investorrelations.
- The presentation material to be referenced during the call will be posted on National Bank's website prior to the beginning of the conference call.
- The archived conference call recording will be available to investors, until November 22, 2001, by dialing the following number: (416) 695-5800 or 1-800-408-3053 and entering the password 972988.
- An archived version of the webcast will also be available after the call ends on the Bank's website at www.nbc.ca/investorrelations.
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank has assets of over $75 billion and, together with its subsidiaries, it employs over 16,6 00 people. The Bank's shares are listed on the Toronto Stock Exchange.
The PNC Financial Services Group, Inc., headquartered in Pittsburgh, is one of the largest diversified US financial services organizations, providing regional community banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services.
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