Analyst Asks, Might RBC Mimic TD?

Could Royal Bank of Canada be poised to change its U.S. banking strategy and follow in the footsteps of Toronto-Dominion Bank?

One Canadian banking analyst seems to think so. Robert Wessel of National Bank Financial Inc. said Monday that Royal Bank could sell or swap its U.S. banking arm, RBC Centura Banks Inc. of Rocky Mount, N.C., if it meant getting a controlling stake in a larger U.S. banking company.

In an interview, Mr. Wessel said that Royal Bank has about $1.8 billion of excess common equity, and that some of that capital, along with Centura, could be used to buy a 51% stake in a larger company. In March, Toronto-Dominion bought a 51% stake in Banknorth Group …