On Wednesday, Royal Bank of Canada is laying off 450 staff in its head offices in the Toronto area.
Royal Bank of Canada says in a statement that it is also making hundreds of other changes including transfers and promotions, as well as creating new roles and teams. The bank has about 80,000 full-time and part time employees.
James Shanahan, a senior equity research analyst covering the financial services industry for Edward Jones, said Canadian banks are reacting to a troublesome income and loan-growth environment.
“Consumers and businesses in Canada just simply aren’t borrowing as much as they had in previous years,” he said, adding that with slowing loan growth comes slowing growth in revenue and earnings.
“I think what they’re doing here is they’re generally looking for opportunities to reduce expenses as a way to drive earnings growth going forward,” Shanahan said.
Royal Bank Canada reported a second quarter profit rising 9 percent to $2.81 billion on revenue of $10.31 compared with the prior year, when its revenues grew from $9.53 billion, according to the release in May.
The profit added up to $1.85 per share, up year-over-year from $1.66 per share.
On Wednesday’s Toronto Stock Exchange, RBC shares plunged by 48 cents to close at $93.28.