Canada’s banking major Royal Bank of Canada (RBC), as part of its third-quarter financial results announcement, has unveiled its plans to axe around 1,800 jobs in the next quarter.

The bank has already reduced around 1% of its full-time equivalent (FTE) employees since the last quarter and plans to trim around 1 to 2% more jobs in the coming quarter.

RBC reported a net income of C$3.9bn, or C$2.73 per diluted share, for the third quarter ended 31 July 2023, an 8% rise compared to C$3.6bn, or C$2.51 per diluted share, for the same quarter in 2022.

The company reported total revenues of C$14.5bn for the third quarter (Q3) of 2023, a 19% increase compared to C$12.13bn for the same period in the previous year.

The bank has reported an income before tax of C$4.6bn for Q3 2023, a 2% rise compared to C$4.5bn for the respective quarter in 2022.

RBC said that its high net interest income, driven by higher interest rates and strong volume growth in Canadian Banking, was partially offset by higher staff-related expenses.

The expenses were primarily due to high salaries, variable and stock-based compensation, and professional fees, along with ongoing technology investments and costs.

Royal Bank of Canada president and CEO Dave McKay said: “Despite a complex operating environment, our Q3 results exemplify RBC’s ability to consistently deliver solid revenue and volume growth underpinned by prudent risk management.

“We remain focused on executing our cost reduction strategy while leveraging our strong balance sheet and diversified business model to support our growth and bring long-term value to our clients, communities and shareholders.”

RBC’s Personal and Commercial Banking business reported a net income of C$2.13bn for Q3 2023, a 5% increase compared to C$2.02bn for the respective quarter a year ago.

The Canadian lender’s Wealth Management unit reported a net income of C$674m for Q3 2023, an 18% decrease compared to C$821m for the same period in 2022.

The bank’s Insurance business reported a net income of C$227m for Q3 2023, a 22% increase compared to C$186m for the corresponding quarter in the previous year.

RBC’s Capital Markets unit reported a net income of C$938m for Q3 2023, a 57% rise compared to C$599m for the same quarter in 2022.