RBC Targets 20% Revenue Share in Europe's Capital Markets
Royal Bank of Canada (RBC) is making a significant push into Europe's capital markets, betting on growth opportunities in Britain and other European countries. According to Derek Neldner, head of capital markets at RBC, the region accounts for 18% of the bank's total revenue, and he expects this figure to reach up to 20% in the coming years.
The bank is expanding its products and services in Europe, including cross-border financing, which has become increasingly popular among Canadian companies looking to diversify their funding sources. RBC has been hiring senior bankers from top investment banks such as Goldman Sachs and Citigroup, and has grown its capital-markets team in the region by 16% over the past five years.
The bank's focus on Europe is part of a broader strategy to break into the top ten list of global capital markets players, dominated by US-based lenders. RBC sees opportunities in sectors such as industrials, healthcare, and technology, and is expanding its investment-banking teams to specialize in these areas.