Royal Bank of Canada RY-T has cut close to 1 per cent of its capital market staff in the United States as part of its annual performance review, a person familiar with the matter said on Thursday.
Canada’s biggest bank has let go roughly 30 junior staff from the U.S. capital markets team, said the person who was not authorized talk about the cuts publicly.
A U.S.-based RBC spokesperson said in an email that “minimal cuts” were made to the U.S. investment banking business, in line with “normal attrition.”
RBC’s capital markets business reported a 58 per cent drop in net income in the third quarter to $479 million, primarily due to the impact of loan underwriting markdowns of $385 million in the United States.
RBC’s U.S. business includes retail banking, capital markets, wealth management and treasury services and wealth management.
Bank of Montreal has also laid off staff in its U.S. capital markets division, a spokesperson said earlier this month, without giving details.
Rapid interest rate hikes by the U.S. Federal Reserve to tame runaway inflation have rattled global financial markets, curbing companies’ appetite for deals and making them wary of stock and debt offerings.
In July, Goldman Sachs Group Inc. GS-N warned it may slow hiring and cut expenses as the economic outlook worsens.