RBC noticed income develop in third quarter of 2023 however warns of job cuts

RBC loved strong progress in its backside line final quarter, however its management sees hassle forward.

From Could by means of July 2023, which RBC considers the 12 months’s third quarter, the Canadian agency noticed its internet revenue rise to $3.87 billion (all figures are in Canadian {dollars}, except in any other case famous). That is an 8% improve over the third quarter of 2022.

However in a name with buyers on Thursday, RBC CEO Dave McKay additionally expressed misgivings about subsequent quarter.

“Our base case forecasts a softer financial outlook,” McKay stated. “We count on slowing progress and decrease inflation because of the lagging affect of financial coverage, mixed with a slowdown in China and elevated local weather in geopolitical dangers.”

To adapt to this local weather, RBC plans to chop jobs. McKay stated the agency lowered its headcount by about 1% final quarter, however will nonetheless want to cut back it by one other 1% to 2% in This autumn. At an organization with over 97,000 staff, that might imply the lack of about 1,900 jobs.

“We have heightened our deal with expense management,” McKay stated. “We count on to additional cut back FTE [full-time equivalent] by roughly 1% to 2% subsequent quarter, by means of attrition and focused reductions.”

In different methods, RBC has elevated its headcount in latest months — notably within the U.S. Earlier this week, RBC Wealth Administration recruited an advisory team in Atlanta with US$5.5 billion in client assets. Additionally in August, the agency reeled in a US$1.1 billion team in Columbus, Ohio. And in April, RBC snapped up an advisory group managing US$1 billion in Newport Seaside, California.

Learn extra: RBC makes biggest hire ever with $5.5 billion team from UBS

So it was with a mixture of concern and optimism that McKay described RBC’s American operations.

“We’re effectively positioned to profit from our diversified U.S. enterprise combine, together with our high 10 capital markets and wealth administration platforms,” McKay stated.

For a more in-depth take a look at how RBC did within the third quarter of 2023, scroll by means of the cardshow under (all numbers are in Canadian {dollars}). To see how RBC did within the second quarter, click here. And for the agency’s ends in the third quarter of 2022, click here.