TORONTO (Reuters) - Royal Bank of Canada (RY.TO) said on Tuesday it was forming a new business segment that would provide custodial, advisory, financing and other services to institutional clients.
The business will help safeguard assets, maximize liquidity and manage risk across different jurisdictions for large clients such as financial institutions, sovereign wealth funds, insurance companies, asset managers, hedge funds and pension funds.
Canada’s largest bank said the new investor and treasury services segment will include RBC investor services, global financial institutions and treasury services.
“These changes reflect our goal to grow our investor and custody franchise, which is attractive because of its low risk profile and stable revenue streams,” RBC’s Chief Executive Gordon Nixon said in a statement.
The Toronto-based bank said it was also forming a personal and commercial banking segment that going forward will combine results from its erstwhile Canadian and international banking businesses.
RBC said it would continue to provide selected financial data for Canadian banking, Caribbean and U.S. banking consistent with its current disclosure.
Dave McKay, who currently heads RBC’s Canadian Banking arm, will now be responsible for the entire personal and commercial banking segment.
“By bringing together all of our retail banking businesses, we can leverage our domestic banking expertise internationally,” Nixon said.
RBC’s new business segments for financial reporting purposes will be investor and treasury services; personal and commercial banking; capital markets; wealth management; and insurance. The changes are effective October 31, the bank said.
Reporting by Euan Rocha; Editing by Maureen Bavdek