Officials say the bank is focused on managing costs and ensuring better efficiency
Royal Bank of Canada has said that it is bracing itself for the possible impacts of the current tumult and fluctuations in global trade and stock markets.
Earlier this week, RBC president and CEO Dave McKay stated that economies and organizations should not underestimate the effects of “rising geopolitical risks and trade tensions.”
The warning came in the wake of RBC’s release of its latest financial results, which indicated a Q2 2019 profit of $3.26 billion impelled by 5% annual growth. The bank’s retail, wealth management, and insurance units contributed to its robust showing during the quarter.
“This uncertainty is manifesting itself in downward trends in global interest rates,” McKay said in an analyst conference call, as quoted by the Financial Post.
“While there are risks to the outlook, current economic conditions in our core North American geographies remain solid, with unemployment near multi-decade lows and a continued resilience in the Canadian manufacturing sector.”
RBC chief financial officer Rod Bolger added that the growth in expenses decelerated to 2.3% year-over-year during Q2. This fell from 6.6% in the first half, giving the bank plenty of elbow room in case of a disturbance.
“We are prepared,” he assured. “Given lower interest rates and the expectation of interest-rate cuts, we are prudently focused on driving efficiencies and managing costs.”
“We continue to drive efficiencies, which create opportunities to invest in growth. We reaffirm our guidance from last quarter and expect lower expense growth in the second half of the year.”
