RBC reports $6B Q3 profit, sees more investment
Royal Bank of Canada reported a strong third-quarter profit of $6 billion despite ongoing trade tensions between Canada and the U.S. CEO Dave McKay expressed optimism that the Canadian economy remains resilient due to diversified trade relationships and a low effective tariff rate.
Why it matters
The report provides insight into how major financial institutions are navigating the economic impact of recent US-Canada trade disputes.
TORONTO - The head of Royal Bank of Canada says the domestic economy will likely pull through the latest round of ratcheted-up trade tensions between Canada and the U.S. thanks to a low effective tariff rate, healthy foreign investment and fresh trade deals. Dave McKay said on the bank’s third-quarter earnings call Thursday that Canada’s economy has performed well after absorbing multiple shocks over the past 18 months. The trade dispute between Canada and the U.S. escalated after U.S. President Donald Trump imposed 50 per cent tariffs on about $28 billion worth of Canadian products over the weekend. On Tuesday, Ottawa announced a suite of retaliatory tariffs on U.S. goods set to take effect Sept. 8, along with a new $7.5-billion tariff-relief package for businesses and workers. “While Canada and the U.S.
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