Royal Bank Buys Australia's Yarra Capital Management

By Robb M. Stewart

Royal Bank of Canada reached a deal to buy Yarra Capital Management, an Australian asset manager with roughly $12.4 billion in assets under management.

The bank, the Canada's biggest by market value and one of the largest in North America by assets, on Monday said it entered into an agreement to acquire Yarra Capital.

The purchase prices wasn't disclosed though Royal Bank said the transaction isn't expected to have a significant impact on its common equity Tier 1 capital ratio( or future run-rate earnings.

RBC Global Asset Management is working to expand and diversify its market share, including outside of North America. Royal Bank said it is committed to growing in Australia and the Asia-Pacific region, and the acquisition is expected to further strengthen its position as a leading global asset manager.

The move comes after Royal Bank and Bank of Montreal this year agreed to sell jointly-owned commerce platform Moneris Solutions to technology investor Francisco Partners for about 2 billion Canadian dollars ($1.4 billion), which Royal Bank estimated would result in an after-tax gain of C$475 million and result in a marginally positive impact on its CET1 ratio.

Yarra Executive Chairman Dion Hershan said the decision to combine with Royal Bank followed a long and deliberate search for a business partner.

We anticipate completion of this transaction in the first quarter of 2027.

Fellow Canadian lender Bank of Montreal early this month completed a deal to buy the Australian capital markets business of Euroz Hartleys in an effort to bolster the l metals and mining franchise of its BMO Capital Markets arm.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 09, 2026 08:56 ET (13:56 GMT)