The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third quarter on Thursday.

CEO Dave McKay projected a slowdown in growth and decreased inflation due to the delayed effects of monetary policy, along with a deceleration in China's economy and elevated geopolitical and climate risks.

In May, McKay had announced plans to curtail hiring after overshooting their staffing targets. RBC stated that the count of full-time employees dropped by 1% from the previous quarter and anticipates an additional reduction in workforce by about 1% to 2%. From July 31^st, the bank employed 93,753 full-time workers. John Aiken, Barclays analyst, praised the bank's effective expense management and improved overall efficiency ratio, acknowledging their impressive earnings performance.

On the other hand, the Toronto-Dominion Bank fell short of analysts' profit projections for the quarter. This was attributed to increased expenses, provisions for potential bad loans, and weaknesses in its U.S. operations.

TD set aside C$766 million, a significant rise from the C$351 million set aside a year ago. Meanwhile, RBC allocated C$616 million for credit losses, up from C$340 million, reflecting challenges faced by consumers in meeting financial obligations due to high living costs.

To tackle persistent inflation, the Bank of Canada has raised interest rates 10 times since March of the preceding year, leading to improved profitability for banks' consumer businesses through higher earnings from loans.

This has contributed to 5% earnings increase in RBC's retail division. Conversely, TD witnessed a 1% decline in income from its Canadian personal and commercial banking segment and a 9% drop in its U.S. retail unit's earnings.

Source Credit: https://www.reuters.com/markets/royal-bank-canadas-profit-rises-strength-lending-business-2023-08-24/

The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third quarter on Thursday.

CEO Dave McKay projected a slowdown in growth and decreased inflation due to the delayed effects of monetary policy, along with a deceleration in China's economy and elevated geopolitical and climate risks.

In May, McKay had announced plans to curtail hiring after overshooting their staffing targets. RBC stated that the count of full-time employees dropped by 1% from the previous quarter and anticipates an additional reduction in workforce by about 1% to 2%. From July 31^st, the bank employed 93,753 full-time workers. John Aiken, Barclays analyst, praised the bank's effective expense management and improved overall efficiency ratio, acknowledging their impressive earnings performance.

On the other hand, the Toronto-Dominion Bank fell short of analysts' profit projections for the quarter. This was attributed to increased expenses, provisions for potential bad loans, and weaknesses in its U.S. operations.

TD set aside C$766 million, a significant rise from the C$351 million set aside a year ago. Meanwhile, RBC allocated C$616 million for credit losses, up from C$340 million, reflecting challenges faced by consumers in meeting financial obligations due to high living costs.

To tackle persistent inflation, the Bank of Canada has raised interest rates 10 times since March of the preceding year, leading to improved profitability for banks' consumer businesses through higher earnings from loans.

This has contributed to 5% earnings increase in RBC's retail division. Conversely, TD witnessed a 1% decline in income from its Canadian personal and commercial banking segment and a 9% drop in its U.S. retail unit's earnings.

Source Credit: https://www.reuters.com/markets/royal-bank-canadas-profit-rises-strength-lending-business-2023-08-24/

The Royal Bank of Canada is reportedly planning to reduce its workforce by approximately 1,800 jobs as part of cost-cutting measures, on account of the anticipated upcoming economic landscape. This decision comes after the country's largest bank surpassed analysts' predictions for the third quarter on Thursday.

CEO Dave McKay projected a slowdown in growth and decreased inflation due to the delayed effects of monetary policy, along with a deceleration in China's economy and elevated geopolitical and climate risks.

In May, McKay had announced plans to curtail hiring after overshooting their staffing targets. RBC stated that the count of full-time employees dropped by 1% from the previous quarter and anticipates an additional reduction in workforce by about 1% to 2%. From July 31^st, the bank employed 93,753 full-time workers. John Aiken, Barclays analyst, praised the bank's effective expense management and improved overall efficiency ratio, acknowledging their impressive earnings performance.

On the other hand, the Toronto-Dominion Bank fell short of analysts' profit projections for the quarter. This was attributed to increased expenses, provisions for potential bad loans, and weaknesses in its U.S. operations.

TD set aside C$766 million, a significant rise from the C$351 million set aside a year ago. Meanwhile, RBC allocated C$616 million for credit losses, up from C$340 million, reflecting challenges faced by consumers in meeting financial obligations due to high living costs.

To tackle persistent inflation, the Bank of Canada has raised interest rates 10 times since March of the preceding year, leading to improved profitability for banks' consumer businesses through higher earnings from loans.

This has contributed to 5% earnings increase in RBC's retail division. Conversely, TD witnessed a 1% decline in income from its Canadian personal and commercial banking segment and a 9% drop in its U.S. retail unit's earnings.

Source Credit: https://www.reuters.com/markets/royal-bank-canadas-profit-rises-strength-lending-business-2023-08-24/