Royal Bank drops U.S. banking from strategic goals!
TORONTO, Ontario, Canada - December 3, 2010 - Royal Bank of Canada dropped references to the U.S. from its strategic goals for next year, a sign that Canada’s largest lender may be putting less emphasis on its money-losing U.S. consumer bank.
In its 2010 annual report released today, the Toronto-based bank stated it wanted “globally, to be a leading provider of capital markets and wealth-management solutions.” In annual reports for the previous eight years, the goals included being a leading provider of banking in the U.S.
The language change comes after Royal Bank posted 10 consecutive quarterly losses in its international banking division, which includes Raleigh, North Carolina-based RBC Bank.
“This may be an indication that they’re either going to look to exit completely out of the U.S., or at least not put any more assets in that direction,” said Barry Schwartz, who helps manage about $375-million including Royal Bank shares at Baskin Financial Services, Inc. in Toronto.