The Marchant’s Bank of Halifax, the predecesor to the Royal Bank of Canada was the first foreign bank to establish an office in Cuba after its independence on March 8, 1899. As a matter of fact, its Cuban agency was The Merchant’s Bank of Halifax first overseas operation. The bank saw the opportunity not only to promote and finance trade between the newly independent nation and Canada but in capturing part of the highly expected Cuban-American trade.  In 1901 The Marchant’s Bank of Halifax changed its name to the Royal Bank of Canada when its offices were moved from Halifax to Montreal. Its operations in Cuba grew a few years later with the acquisition of Banco de Oriente in Santiago de Cuba in 1903 and Banco de Comercio de La Habana in 1904. Between 1904 and 1908 The Royal Bank of Canada opened ten branch offices in Cuba, number that by 1923 had grown to sixty five. Royal Bank quickly became the preeminent foreign bank in Cuba as it was not until 1906 when the Bank of Nova Scotia entered the island but it never developed a branch system and it was not until after 1914 that National City Bank reached the level of business that Royal Bank had developed due to its early start in 1899.

The sugar industry boom years during WWI and the Dance of the Million fever influenced many to join the party including Royal Bank. That was when Royal Bank established the Cuban Canadian Sugar Co. and acquired Central Rio Cauto. Royal Bank was not exempt from the sugar price debacle of 1920 when the price of sugar dropped from 22.5¢ in May to 3.6¢ in December of that year. Loans made to sugar mills became non-performing obliging the bank to foreclose and take possession of the assets that served as collateral to the loans, de facto getting involved in the sugar manufacturing business. Large sugar enterprises like Cia. Azucarera Borjita S. A. owner of Central Borjita became subsidiaries of the bank. In 1922 the Sugar Plantations Operating Co. was created to assume ownership and oversee the newly acquired assets. In 1923 the Sugar Plantations Operating Co. acquired Central Portugalete in Palmira, Las Villas and managed until 1927 when it was sold to Azucarera Luzárraga S. A. making it one of the quickest assets acquired to be sold.

According to Guillermo Jiménez in his book Las Empresas de Cuba 1958 , as a result of the sugar price crisis of 1920 the Royal Bank acquired the assets of Cia. Azucarera Central Adela S. A. owned by brothers Marcos and Juan Zárraga Ortiz. However, its owners would maintain the administration of the sugar mill. Jimenez also states that during the late 1930's The Royal Bank of Canada owned nine sugar mills operated by Sugar Plantations Operating Co. including two operated by Antilla Sugar Estates, a subsidiary of Sugar Plantations Operating Co. In 1958 it still maintained minority interest in the three sugar mills it sold to Salustiano Garcia Diaz, namely Central Báguanos, Central Tacajó, Central Algodones, it is reasonable to believe these participations had to be written off when the sugar mills were nationalized by the Fidel Castro Regime in 1960. The nine sugar mills mentioned by Jiménez were:

1. Central Algodones - Was sold in 1948 to Salustiuano Garcia Diaz together with Central Báguanos and Central Tacajó.

2. Central Almeida aka Báltony - acquired from Federico Almeida renamed Compañia Azucarera Oriental

3. Central Báguanos - Was established in Holguín in 1919 by Sánchez Aballi in partnership with brothers of Asturias descent Martín and Melchor Palomo Beceiro and Gabriel Mouriño. Due to the sugar price crisis of 1921 its ownership was transferred to Cia. Azucarera de Báguanos and was acquired by Antilla Sugar Co., a subsidiary of the  Punta Alegre Sugar Co. In 1926 it was one of the two sugar mills together with Central Tacajó owned by a new company called Antilla Sugar Estates. Due to its bankruptcy in 1931, ownership of Antilla Sugar Estates was assumed by Sugar Plantations Operating Co. In 1948 Sugar Plantation Operating Co. sold the two sugar mills owned by Antilla Sugar Estates plus Central Algodones to Salustiano Garcia Diaz who was its owner in 1960 when nationalized by the Fidel Castro Regime and renamed Central Lopez-Peña.

4. Central Tacajó - Was established in 1917 by the Dumois family. In 1924 it was acquired by Antilla Sugar Co. a subsidiary of the Punta Alegre Sugar Co. In 1926 its ownership together with that of Central Báguanos were transferred to the Antilla Sugar Estates which went bankrupt in 1931 and was acquired by Sugar Plantation Operating Co. In 1948 Sugar Plantation Operating Co. sold the two sugar mills owned by Antilla Sugar Estates plus Central Algodones to Salustiano Garcia Diaz who was its owner in 1960 when nationalized by the Fidel Castro Regime.

5. Central Borjita - From 1920 to 1925 was owned by Francisco Almeida when it was acquired by Sugar Plantations Operating Co. in a transaction that involved Jacinto Pedroso Hernández.[1]

6. Central Fe - Was established ca. 1863 by Ariosa & Gutierrrez Hoyo and then by Guillermo Gutierrez y de Ariosa and acquired in the 1880s by José Maria Espinosa Font who was a Senator from 1909 to 1913 and Communications Secretary under the presidency of Gerardo Machado and owned it until 1918. It was acquired from Salamanca Sugar Co. and renamed Compañia Azucarera Fe. In 1944 was sold to Julian de Zulueta Besson who owned it under the Azucarera Camajuaní S. A. name.

7. Central Rio Cauto - Was established in 1913 by American James McLaughlin, then owned by Rio Cauto Sugar Co. acquired in 1919 by the Cuban Canadian Sugar Co. a subsidiary of the Royal Bank of Canada. In 1949 it was sold to Spaniard from Asturias Melchor Palomo Beceiro who was also co-owner of Central Báguanos and Benito Remedios Laganey.

8. Central Ciego de Avila- acquired from Cia. Azucarera Ciego de Avila, was dismantled. 

9. Central Galope -acquired from Cia. Azucarera Pinareña renamed Cia. Azucarera Manacas, was dismantled.

When the Sugar Plantations Operating Co. was established, the idea was that when the price of sugar rebounded, the sugar mills it had to acquire would be sold. Although some would be sold along the way, little did they know the last sale would not occur until 1950.

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[1] Member of a long established family of bankers and lawyers, in 1917 Jacinto Pedroso Hernández had established Banco Pedroso, liquidated in 1932 before another with the same name was established in 1934. Pedroso Hernández was accused of fraud involving the purchase transaction of Central Borjita and of setting on fire Central Santa Catalina in 1931. The new Banco Pedroso established in 1934 was run by his heirs and was in the family until it was nationalized by the Fidel Castro regime in 1960.