Royal Bank of Canada to Acquire Abacus Financial Services Group Limited

JERSEY and TORONTO, November 30 /PRNewswire/ -- Royal Bank of Canada (TSX: RY ; NYSE: RY) and the shareholders of Abacus Financial Services Group Limited (Abacus) today announced that Royal Bank of Canada (RBC) has acquired Abacus. The terms of the transaction were not disclosed.

The transaction has been approved by Abacus shareholders and all relevant regulators. Both sides have begun working toward seamlessly integrating the operations of the companies with an immediate focus on creating value for our clients and our shareholders.

"Abacus' talent, expertise and reputation for client service makes this an excellent fit on strategic, cultural and economic factors," said Michael Lagopoulos, President and CEO, Global Private Banking, RBC. The acquisition is expected to be virtually neutral to RBC earnings in 2006 and slightly accretive in 2007.

Abacus has offices in six locations: London, Jersey, Guernsey, Edinburgh, Cheltenham and Amsterdam. As a result of this transaction, assets under administration of RBC's Global Private Banking business has increased by US$41 billion. The deal provides RBC's Global Private Banking business with a greater presence in the British Isles with a total of more than 1,200 employees. Around the world, RBC's Global Private Banking business has a total of 30 offices in 21 countries with almost 2,000 employees serving the wealth management needs of international high net worth individuals and select institutional clients.

Paul Patterson, head of Global Private Banking for RBC in the British Isles, will oversee the integration of the combined group. Huw Bolle-Jones, the Group Chief Executive of Abacus, will take responsibility for the merged British Isles trust and fiduciary services of the combined private client businesses.

RBC has had operations in the British Isles since 1910. "Our focus in this critical market is to grow our business through the delivery of team-based wealth management solutions, broadening relationships with our existing clients and expanding our sales teams and client base," Patterson said. "As two leading organizations, Abacus and RBC will combine their best practices, knowledge, and expertise to form an innovative and client-oriented organization."

Abacus was established in 1967, originally as part of the Channel Islands firm of Coopers & Lybrand. Abacus became an independent member of Coopers & Lybrand International in 1994 following a management buy-out by the fiduciary and wealth management services partners. The firm became wholly independent in 1998 following the merger between Coopers & Lybrand and Price Waterhouse.

"RBC's acquisition of Abacus will provide Abacus clients with access to the services and strength of a full service global financial institution combined with a full range of wealth management solutions, including banking, investment management, investment advisory and custody," Bolle-Jones said.

With the acquisition of Abacus, RBC strengthens its position in wealth management services in the U.K. and Channel Islands, with greater presence in continental Europe. Serving wealthy private and institutional clients, Royal Bank of Canada provides a full range of wealth management services, including international trust and structured solutions, discretionary investment management and advisory services, and international banking and credit solutions. RBC also provides global share plan administration, employee benefit trusts, international pension plans and global custody and fund administration services for select institutional clients in jurisdictions where it has unique expertise.

About Royal Bank of Canada Global Private Banking

Global Private Banking is Royal Bank of Canada's international wealth management operation, including private banking, trust services, discretionary investment management, global custody and international full-service brokerage. Royal Bank of Canada Global Private Banking locations are selected for the flexibility and security they provide our clients and for the integrity of their financial and regulatory systems. With a network of offices in over 27 key financial centres around the world, RBC's Global Private Banking provides international financial services for private and corporate clients resident in more than 150 countries. For more information, please visit www.rbcprivatebanking.com.

About RBC

Royal Bank of Canada (TSX, NYSE: RY) uses the initials RBC as a prefix for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group. Royal Bank of Canada is Canada's largest financial institution as measured by market capitalization and assets, and is one of North America's leading diversified financial services companies. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. The company employs approximately 60,000 people who serve more than 14 million personal, business and public sector clients through offices in North America and some 30 countries around the world. For more information, please visit www.rbc.com.

About Abacus

The Abacus Financial Services Group was established in the Channel Islands in 1967 and has offices in London, Cheltenham, Edinburgh and Amsterdam as well as Jersey and Guernsey. The Group was originally part of one of the world's leading accountancy practices, Coopers & Lybrand, a predecessor firm to PricewaterhouseCoopers. It specialises in the provision of wealth management services to an international client base and in the administration of employee benefit plans. The Group employs around 400 people and has more than pnds stlg 23 billion assets under management.

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