Strong market and economic fundamentals in B.C. propelled RBC’s mortgage and commercial loan growth rates
Royal Bank of Canada’s noticeably larger mortgage and commercial loan growth rates over the past year can be largely attributed to the stellar market and economic performance of British Columbia.
Nationwide, outstanding balances of commercial loans went up by 22% compared to the same time least year, which is “unheard of” for the bank, RBC’s new B.C. regional president Martin Thibodeau told Business in Vancouver.
“It’s significant, usually, when you are up 8% or 9%. That’s a big year.”
Read more: B.C. clamps down on condo flipping and tax evasion
RBC also far exceeded its January-April 2018 target for mortgages by $400 million, with $363 million coming from the B.C. market.
“Looking at the real estate side [for mortgage loans], it’s the best start we’ve had in 15 years in terms of growth,” Thibodeau stated.
“If you look at the fundamentals of B.C., it is a place people want to come and live, retire and immigrate,” the exec added. “That’s not about to stop any time soon. It may slow down a bit for different reasons but I don’t think it will fundamentally [change].”
