* Deal adds $650 million in loan commitments
* New unit will focus on corporate, real estate banking
* Terms of deal not disclosed
(Adds background on RJ Bank)
CHARLOTTE, N.C., June 30 Raymond James
Financial Inc's (RJF.N) bank subsidiary has agreed to buy
nearly all the assets of Allied Irish Bank's (ALBK.I) Canadian
operations, the St. Petersburg, Florida-based brokerage and
investment bank said on Thursday.
Raymond James Bank will acquire $650 million in loan
commitments as part of the deal for the Toronto-based
operations of Allied Irish.
Under the deal, Raymond James Bank will create a new
Canadian finance company, expanding its corporate and real
estate banking business.
Raymond James said the deal will expand its corporate and
real estate loan portfolio by 10 percent.
Terms of the deal were not disclosed. It is expected to
close by the end of the September quarter, pending U.S. and
Canadian regulatory approvals.
The purchase is a reversal from last summer, when the
bank's credit issues overshadowed the rest of the brokerage.
At the time, company executives warned that credit issues
would remain elevated as long as the economy lagged.
But the bank's credit woes appear to be improving in recent
As of March 31, RJ Bank reported pre-tax quarterly income
of $42 million, up from $30 million a year earlier.
The company's fiscal second-quarter net charge-offs also
declined to $8.5 million, from $20.7 million a year earlier.
(Reporting by Joe Rauch. Editing by Robert MacMillan)