Explaining its "difficult" decision, the Canada-based group said activities in the island will be moved to Jersey and other centres.

(Updates with numbers of staff in Guernsey.)

RBC Wealth Management is quitting Guernsey following a business review, pulling operations from the island into rival Channel Island Jersey as well as other centres.

The firm, part of Royal Bank of Canada, said in a statement yesterday that it expects the full closure, transition of client business and operations to take up to two years to complete. Some activities will move sooner, it said. There are 89 RBC Wealth Management employees in the Guernsey offices, a spokesperson told WealthBriefing when asked about the matter.

“The impact of the closure on individuals will be determined by their role. RBC is committed to ensuring that employees are kept well-informed and treated fairly and respectfully as the firm closes its activity,” RBC Wealth Management said, without elaborating on numbers. It described the exit from Guernsey as a “difficult decision.”

“RBC remains committed to its operations in Jersey and across Europe in its strong capital markets, global asset management and wealth management businesses in the region, as demonstrated by its recent acquisition of Brewin Dolphin,” it said. 

The move highlights how cost continues to weigh on banks as they ponder the most efficient way to run their global business.

In early December last year, RBC said its wealth management arm chalked up 20 per cent earnings growth for the 12 months to 31 October 2022, mainly caused by higher net interest income driven by average volume growth of 19 per cent in loans and 11 per cent in deposits largely in US wealth management, and higher interest rates.