RBC announces local cuts
Yet another Canadian bank has announced plans to cut its operations in Barbados and the rest of the Caribbean.
The Royal Bank of Canada (RBC) has confirmed that it will be shutting its international wealth management business in the region, as well as several international advisory businesses in North America.
While RBC spokeswoman Claire Holland said it would be premature as this stage to estimate the number of employees that will be impacted, Bloomberg has reported that the total job loss could be as much as 300.
Holland also said the focus of the bank’s international growth strategy would now be on operating in major financial centres where RBC has “competitive strengths”.
The move followed RBC’s sale of its Jamaican operations earlier this year at a loss, as well as the reorganizing of its Caribbean retail banking business by cutting jobs and streamlining head office operations.
It also comes on the heels of announcement by the Bank of Nova Scotia earlier this month of its plans to downsize around 120 branches in Mexico and the Caribbean, in preference for high-growth areas.
Another Canadian-based bank, CIBC, which operates in the region as FirstCaribbean International Bank, also announced proposed changes to its operations this month, which include consolidating its back office services that support its lending, account and client information processing.
RBC, which is Canada’s largest lender with total assets of about CA$2.3 billion and retained earnings of about CA$27.5 million in fiscal year 2013, has wealth management divisions in Barbados, The Bahamas, Cayman Islands, as well as management teams in Montreal, Toronto and the United States.
However, going forward it plans to focus its RBC Wealth Management Unit on serving wealthy clients in priority markets, including Canada, the US, the British Isles and Asia – regions where the division can build on the bank’s other existing businesses.