Key Points
TORONTO, Oct 31 (Reuters) - Royal Bank of Canada (RY.TO) has injected about $2.95 billion into its U.S. unit City National Bank (CNB) so far this year to bolster its capital, making one of the biggest annual infusions of funds since acquiring the Los Angeles-based bank in 2015...
City National disclosed the numbers in a regulatory report in the United States late on Monday, which also showed that it posted a net loss attributable to the bank of $1.59 billion for the first three quarters of the year...
RBC, Canada's top lender, said in September that it had infused fresh capital into City National, without elaborating, as it struggled amid the U.S. regional banking crisis...
"The necessity of RBC's intervention is a negative read-through, highlighting CNB's struggles to navigate through a tough operating environment," KBW analyst Mike Rizvanovic said.. Rizvanovic estimates roughly $7 billion of low-yielding debt securities were transferred from City National to RBC, and he said the return on invested capital should "improve meaningfully" following the move...
RBC CEO Dave McKay has previously acknowledged that a higher cost of doing business was reducing the profitability of U.S. regional banks and said in August that City National was "not immune to these factors."..
You might be interested in
RBC pumps capital into Californian bank unit City National
30, Sep, 23Royal Bank of Canada (RBC) (RY.TO) on Friday said it had injected capital into its Los Angeles-based subsidiary City National to boost the unit's liquidity and pay down a higher cost of borrowing.
National Bank of Canada's fourth-quarter profit jumps on capital markets strength
03, Dec, 23National Bank of Canada (NA.TO) reported a rise in fourth-quarter profit on Friday, as a strong performance at its capital markets unit helped offset the hit from bigger provisions.
Logitech raises sales forecast for first half of 2024
25, Jul, 23Logitech International (LOGN.S) on Tuesday raised its sales outlook for the first half of its 2024 financial year, in the first set of results since longstanding CEO Bracken Darrell quit the computer peripherals maker last month.
Goldman Sachs profit plunges on impact from fintech sale, real estate bets
17, Oct, 23International Business News: Goldman Sachs reported a decrease in profit for the third quarter due to a write-down on its GreenSky fintech business and real estate investments. Th
Adani Group set to refinance $3.5 billion debt taken for ACC-Ambuja buy
20, Oct, 23New 3 yr facility from a mega consortium of 18 banks will simplify debt structure, improve credit rating, boost cement sector growth plans while saving upto quarter of a billion dollars. Largest refinancing in APAC this year.
Big US banks to fare well in annual health checks despite spring turmoil
26, Jun, 23Big U.S. lenders are expected to show they have ample capital to weather any fresh turmoil in the banking sector during this week's Federal Reserve health checks, although resulting investor payouts are likely to dip slightly, analysts said.
Goldman profit slides to three-year low on consumer losses
19, Jul, 23The bank also took $615 million in credit losses including writedowns related to its consumer loans and business
Fresh inflows of NRI deposits double in April-October
25, Dec, 23Relatively higher interest rates happen to be one of the driving factors, said Madan Sabnavis, chief economist, Bank of Baroda. FCNR(B) returns offered by the State Bank of India were more than 5%, compared with less than 3% returns offered by American Banks.