Latest news with #NiveditaBalu
Yahoo
29-05-2025
- Business
- Yahoo
Canada's RBC asks staff to return to office four days a week
By Nivedita Balu TORONTO (Reuters) -Royal Bank of Canada has asked employees to be in office four times a week starting in September, according to a memo seen by Reuters, prompting disapproval among some staff discussing the changes in internal chat groups. The memos from various business heads were sent to staff on Thursday shortly after the bank reported second-quarter earnings that were lower than analysts' expectations due to a rise in loan loss provisions to prepare for uncertain times. The memo said the rule does not apply for roles that are fully remote or are already in full-time office arrangements. "RBC is a relationship-driven bank and in-person, human connection is core to our winning culture. We set the expectation in 2023 that we'd come together in the office for the majority of the time, with the flexibility to work remotely one to two days a week," a spokesperson said. A company-wide internal chat group that discussed the change in policy raised questions such as additional travel time and expenses related to transport, a source told Reuters. The Canadian lender's decision comes shortly after U.S. bank JPMorgan Chase, in January asked its employees who are on hybrid work schedules to return to the office five days a week starting in March. RBC has over 94,000 full-time employees across global offices, as of April 30. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Canada's RBC asks staff to return to office four days a week
By Nivedita Balu TORONTO (Reuters) -Royal Bank of Canada has asked employees to be in office four times a week starting in September, according to a memo seen by Reuters, prompting disapproval among some staff discussing the changes in internal chat groups. The memos from various business heads were sent to staff on Thursday shortly after the bank reported second-quarter earnings that were lower than analysts' expectations due to a rise in loan loss provisions to prepare for uncertain times. The memo said the rule does not apply for roles that are fully remote or are already in full-time office arrangements. "RBC is a relationship-driven bank and in-person, human connection is core to our winning culture. We set the expectation in 2023 that we'd come together in the office for the majority of the time, with the flexibility to work remotely one to two days a week," a spokesperson said. A company-wide internal chat group that discussed the change in policy raised questions such as additional travel time and expenses related to transport, a source told Reuters. The Canadian lender's decision comes shortly after U.S. bank JPMorgan Chase, in January asked its employees who are on hybrid work schedules to return to the office five days a week starting in March. RBC has over 94,000 full-time employees across global offices, as of April 30. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Canada's No.1 lender RBC posts rare profit miss, CIBC beats
By Nivedita Balu and Arasu Kannagi Basil (Reuters) - Royal Bank of Canada missed analysts' quarterly profit estimates on Thursday as it set aside larger than expected sums of money for potential loan defaults in an uncertain economy brought on by U.S. tariffs. The miss is RBC's first in two years and contrasts with peer Canadian Imperial Bank of Commerce, which topped estimates as its earnings from the capital markets unit rose 20%. Shares of RBC, Canada's largest bank, were down about 3.3% in Toronto while those of CIBC were marginally lower. All Canadian banks have set aside large funds to cover potential loan defaults, as the changing economic outlook is expected to be challenging for borrowers. U.S. President Donald Trump's trade policies have created tremendous uncertainty for Canada's economy. Investors hope newly elected Prime Minister Mark Carney will establish pro-business policies and initiate more positive trade talks. "We cannot say for certain where global trade policies will settle but are cautiously optimistic about the path forward," RBC's CEO Dave McKay said. Executives told analysts a U.S. trade court blocking most of Trump's tariffs in a sweeping ruling on Wednesday maintains that uncertainty in various elements, including allocating capital from mortgages right through to M&A. "We are not shaking the overall uncertainty level because of that ruling last night but it helps for renegotiation of USMCA that we expect to happen in the coming six months," McKay said. He added that RBC was not projecting a recession in Canada or the United States, but the uncertainty was dampening confidence in certain parts of the North American economy, including housing. Canaccord Genuity analyst Matthew Lee noted that RBC was playing it "extra safe" as the lender implemented a downside "trade disruption scenario" to its credit model. RBC's provision for credit losses jumped 55% to C$1.42 billion in the second quarter, higher than analysts' estimate of C$1.13 billion, according to LSEG data. Adjusted profit rose 8% to C$4.53 billion ($3.28 billion). On a per share basis, RBC earned C$3.12, missing the estimated C$3.19. CIBC's provisions rose C$91 million to C$605 million. Earnings of C$2.05 per share surpassed analysts' average estimate of C$1.89. ($1 = 1.3821 Canadian dollars)
Yahoo
28-05-2025
- Business
- Yahoo
Definity's Travelers Canada deal could prompt consolidation as need for scale key, CEO says
By Nivedita Balu TORONTO (Reuters) -Canadian property and casualty insurer Definity Financial's $2.4 billion purchase of Travelers Cos' Canadian business could spur a wave of consolidation in Canada's insurance sector, its CEO said. The deal announced Tuesday will establish Definity as the fourth-largest property and casualty insurer in Canada and helped shares hit a record high on Wednesday. "In Canada, you need size and scale to keep investing in technology and AI and data and be relevant to your brokers and customers," CEO Rowan Saunders said in an interview. Saunders said the P&C insurance industry in Canada is a lot more fragmented and competitive than the banking industry, which is dominated by six big banks. Several foreign players operate in Canada, offering competitive products as insurance becomes a necessity in wildfire-prone regions in the western part of the country and floods become more regular occurrences due to climate change. "This might be a tipping point where a number of these international players will be paying attention to this deal and saying: 'If Travelers, at C$1.6 billion (in annual premiums), didn't think they had enough scale ... how would these companies that are much smaller than that do the same?'" "I think that could be a decision or a question that's asked around boardrooms, which might be a catalyst for ongoing consolidation in our industry." Scaling up will help insurers invest in technology systems, artificial intelligence, data and build efficient supply chain systems to deal with increasing claims from rising catastrophic events or personal claims. Saunders said deal talks began in New York last May where he discussed with Travelers' CEO Alan Schnitzer the importance of scale in Canada. Definity's purchase of Travelers' Canadian personal insurance and the majority of its commercial insurance business will add roughly C$1 billion in annual premiums to its personal lines business and C$600 million in annual premiums to its commercial unit. Definity's shares were up 13% on Wednesday at C$78.62. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
RBC sets up new AI team for capital markets unit
By Nivedita Balu TORONTO (Reuters) -Royal Bank of Canada's capital markets wing has established a new artificial intelligence and digital innovation team as it bets on AI to boost future growth, the Canadian lender told Reuters on Wednesday. The team, with hubs in New York, Toronto and London, will report to newly appointed Chief Strategy and Innovation Officer Lindsay Patrick. RBC also appointed Bobby Grubert as head of AI and Digital Innovation, reporting to Patrick. Grubert worked on Aiden, RBC's first generative AI solution, and RBC Elements, its data-powered research capability. The new team will be formed by appointing talent from across RBC's global market business, the lender said. RBC in March said it expects to earn up to about C$1 billion ($722.02 million) from its AI investments, emphasizing the pivotal role the technology will play in the largest Canadian bank's next growth phase. CEO Dave McKay told investors in March that the bank's technology has received positive responses from the likes of chipmaker Nvidia's CEO, Jensen Huang, and that the lender is betting on AI to speed up training, streamline processes and more. RBC's capital markets head, Derek Neldner, noted that the unit has been scaling and leveraging Aiden, RBC's GenAI solution developed in partnership with research institute Borealis, for electronic trading, automation of front-to-back operations and data-driven research and insights. AI is becoming a key tool for banks globally, which are using it to streamline customer communications, process documents, spot fraudulent activity and automate other mundane tasks. Rival Bank of Montreal also named a chief AI and data officer, while other banks have said they are making investments to boost their capabilities. ($1 = 1.3850 Canadian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
