RBC unit City National Bank cuts nearly 100 jobs after financial losses

City National Bank, the American unit of Royal Bank of Canada, has cut around 100 jobs after recent financial losses, management changes and a regulatory fine of $65 million.

“We regularly review our staffing plans and models to ensure they align with our strategic priorities and allow us to best serve our clients and communities,” a spokesperson for City National said in a statement.

The job cuts came on the heels of several layoffs announcements by US banking giants including Wells Fargo, Bank of America, and Citigroup as dealmaking dried up and demand from borrowers softened last year.

The Office of the Comptroller of the Currency (OCC) had imposed a fine on City National last month, citing the lender had engaged in unsafe or unsound practices, including failure to establish effective risk management and internal controls.

The OCC had issued a cease-and-desist order requiring the bank to take broad and comprehensive corrective actions to improve its strategic plan.

Last November, City National Bank appointed Howard Hammond as its new chief executive officer and Chris Doll as the chief financial officer.

RBC had injected about $2.95 billion into the US unit in October to bolster its capital, as a part of management actions to improve profitability at City National. – Reuters