RBC, Canada's Largest Bank, Anticipates Economic Downturn and Implements Job Reductions
Royal Bank of Canada (RBC) has warned of a softer economy ahead, citing slowing wage growth, lower job postings, and an increase in unemployment. As a result, RBC plans to cut approximately 1,800 jobs. Despite beating analysts' estimates for the third quarter, RBC's CEO, Dave McKay, forecasts slowing growth and lower inflation due to various factors including monetary policy, a slowdown in China, and climate and geopolitical risks. Meanwhile, Toronto-Dominion Bank (TD) missed analysts' estimates for quarterly profit due to higher expenses, rainy day funds, and weakness in its US business. Both banks have underperformed in the stock market this year.