If you’re a bank making a $1.94-billion quarterly profit, you shouldn’t have much to worry about. And that’s mostly true for Royal Bank of Canada.
Yet, the bank’s bond trading results last quarter are a bit of a head scratcher.
Despite “very strong” fixed-income profits at rival banks, RBC somehow missed the boat. The root of the problem: Europe. “We basically didn’t make any money there,” Mark Standish, co-CEO of RBC’s capital markets arm, said on a conference call last week.