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Royal Bank of Canada's deal for City National showed that buyers will pay up for banks that cater to the wealthy. That's why First Republic, Boston Private and Signature Bank may soon find themselves facing offers they can't refuse.
February 6 -
Royal Bank of Canada sold its U.S. retail bank a few years ago to PNC. The company is back with a targeted play: City National, a Los Angeles bank that has built its business targeting the rich and working with Hollywood.
January 22
City National Bank in Los Angeles said Thursday that its first-quarter profit climbed 14% from the same period last year, fueled by a surge in real estate construction and commercial lending.
The $32.7 billion-asset bank posted net income of $61.6 million, or $1.01 a share, missing a consensus of analysts estimates polled by Bloomberg by a penny.
First-quarter loan and lease balances rose 18%, to $20.4 billion, compared with a year earlier. Real estate construction loans climbed 99% in the first quarter from a year earlier, while commercial loan growth jumped 20% year over year. Interest income rose 9%, to $224.8 million. The net interest margin was virtually unchanged at 2.99%
Trust and investment fee income rose 4% from a year earlier, to $55.5 million. Assets under management also rose 4% to $48.4 billion.
City National announced in January that it is
