RBC’s VAR doubled in pursuit of trading windfall
Stressed VAR also surged as the bank switched stress periods
Royal Banks of Canada’s (RBC) risk-of-loss to its trading portfolio averaged C$149 million ($113 million) over the three months to end-July, up from just C$73 million the prior quarter, reflecting a surge in market volatility that contributed to record profits at its capital markets division.
The Canadian giant booked C$949 million in earnings through its trading arm last quarter, a 45% increase year on year. The bank said higher fixed-income trading revenues, due to credit spread tightening
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