Canada’s fifth-largest bank is facing pressure from investors to cut costs, as it grapples with an underperforming retail division and mounting expenses, according to sources who spoke to The Globe and Mail. Christina Kramer, head of personal and small-business banking, is expected to replace Kevin Patterson as head of technology and operations; Patterson plans to retire this year. Laura Dottori-Attanasio, current chief risk officer, will reportedly replace Kramer. (The Globe and Mail)
Talking point: The cuts—if the board approves them—will follow mass layoffs at BMO, which, in December 2019, announced 2,300 employees would lose their jobs in what amounted to the deepest cuts any Canadian bank had experienced in over 15 years. The financial institutions are the latest to join a global trend of banks shedding revenues and employees. HSBC said this week it would cut 35,000 jobs and US$4.5 billion in spending by 2022. European and U.S. banks cut 30,000 people in summer 2019, after revenues at 12 of the top banks in those markets dropped 11 per cent in the first half of that year. RBC, which reported first-quarter earnings on Friday, appears to be bucking the trend: it announced an 11 per cent rise in quarterly profit, driven largely by 35 per cent growth in its capital markets division compared to the same quarter last year and a seven per cent jump in retail banking.