Former Fifth Third Bank CEO Greg Carmichael will join Royal Bank of Canada subsidiary City National Bank as the board’s executive chair beginning Oct. 2, RBC announced Thursday.
Carmichael will report directly to RBC CEO Dave McKay. Kelly Coffey, City National’s CEO, will report to Carmichael.
"I'm honoured to join City National at this important time for the company as it plans for its next phase," Carmichael said in a statement. "With great people, outstanding client relationships, and backed by the strength and breadth of RBC, City National has exciting potential.”
Los Angeles-based City National, which RBC acquired in 2015, reported a $38 million loss for its May-to-July quarter and is facing pressure to reduce costs.
Carmichael served as CEO of Fifth Third from 2015 to 2022 and retired from the bank’s board in March. But less than a week later, the Federal Deposit Insurance Corp. tapped him to lead the bridge bank that was set up to resolve the failed Signature Bank.
At City National, Carmichael replaces Doug Guzman, who has served as the bank’s interim board chair since March 2022. Guzman, group head of wealth management and insurance at RBC, will remain on City National’s board, according to RBC’s statement.
Speaking at an industry conference this week, RBC CFO Nadine Ahn said City National did not prioritize building its U.S. deposits. This exacerbated the bank’s struggle amid growing interest rates and in the aftermath of the failures of Signature and Silicon Valley Bank.
"But it's a hard slog for deposits in the U.S.," Ahn said, according to American Banker. "You have seen liquidity come out of the system to a greater extent than you have in Canada. And the pressure that's putting on the ability to extend credit is quite substantial. You're seeing banks sell off loan portfolios."
The $96 billion-asset bank is part of RBC’s long-term growth strategy in the U.S., the Canadian bank’s “second home market”, McKay said in a statement.
"Greg brings a client-centered and digital-first mindset, underpinned by exceptional operational expertise, that will be key to driving performance,” McKay added.
