Royal Bank of Canada's (RY.TO) stock sagged nearly 4 percent on Friday, as the bank reported a disappointing quarterly profit and said weak market conditions would likely continue to weigh on its markets-related revenue. Speaking on a conference call, executives said low interest rates and market volatility meant wealth management returns could suffer, and said the bank could be hard pressed to meet trading revenue expectations of C$700 million to C$900 million a quarter going forward. "If trading revenues continue to be as volatile and illiquid as they are right now, it's going to be very difficult to meet those objectives," said Gord Nixon, the bank's chief executive, who mentioned the forecast in May. Royal, Canada's largest bank, has a proportionally much larger capital markets division than its domestic peers, and has targeted growth in that area in Europe.
Shares of RY fell by 2.77% or $-1.42/share to $49.85. In the past year, the shares have traded as low as $46.04 and as high as $63.59. On average, 905017 shares of RY exchange hands on a given day and today's volume is recorded at 1044939.
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