Stockwatch – Royal Bank of Canada says cuts will see its wealth-management arm shed its Caribbean business.
Stockwatch – Royal Bank of Canada (TSE:RY, Mkt cap 119.29B, P/E 14.21, Div/yield 0.75/3.63, EPS 5.82, Shares 1.44B) has announced it will be cutting jobs as it goes about refocusing its wealth-management division, although it wouldn’t be drawn on the number of people who will lose their jobs.
The Globe and Mail reports that the Toronto-based financial institution says the cuts follow a strategic review of its wealth-management arm, which will see it shed the division’s Caribbean business.
Analysts claim the changes will have a knock-on effect on some private banking groups in Canada and the United States that have an international focus.
RBC is not alone in its struggles in the Caribbean, with a number of Canadian banks experiencing an uphill battle with their divisions in the region.
Three Canadian lenders with substantial operations in the Caribbean, Royal Bank of Canada, Canadian Imperial Bank of Commerce and Bank of Nova Scotia, have all recorded write-downs from their units in the region in the last 12 months.
RBC, however, moved to temper any suggestions that there will be significant job losses as a result of the Caribbean wrap-up.
“Our long-term vision is a scalable and more focused wealth management business serving high net worth and ultra-high net worth clients from our key operational hubs in Canada, the U.S., the British Isles and Asia,” the bank said.
RBC’s move to exit the client-wealth-management business in the Caribbean comes hot on the heels of a deal to sell its Jamaican banking operations to Sagicor Group Jamaica.
Upon signing that agreement, RBC claimed it would continue to invest in the Caribbean but would focus on regions there where it has a bigger market share.
Stockwatch – Royal Bank of Canada’s net income grew by 5.21%, year over year, to $1.59 per share during the most recent quarter.
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