© Reuters. FILE PHOTO: A sign for the Royal Bank of Canada in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
By Divya Rajagopal
TORONTO (Reuters) – Royal Bank of Canada (RBC) cut about 10 jobs in its U.S. investment banking division last week, a spokesperson for the bank said in an email on Thursday.
The cuts, which represent 1% of its U.S. investment banking division, were in line with “normal attrition” and the staff laid off are part of U.S. capital markets division, the spokesperson said.
RBC is Canada’s biggest bank and its capital markets business reported a 58% drop in net income in the third quarter to C$479 million ($350 million), primarily because of the impact of loan underwriting markdowns of C$385 million in the United States.
RBC’s U.S. business includes retail banking, capital markets, wealth management and treasury services and wealth management.
Bank of Montreal has also laid off staff in its U.S. capital markets division, a spokesperson for the bank said earlier this month, without giving details.
Rapid interest rate hikes by the U.S. Federal Reserve to tame runaway inflation have rattled global financial markets, curbing companies’ appetite for deals and making them wary of stock and debt offerings.
In July, Goldman Sachs Group Inc (NYSE:) warned it may slow hiring and cut expenses as the economic outlook worsens.
($1 = 1.3697 Canadian dollars)
(The story corrects job cut number to 10 from 30)