Royal Bank of Canada (RBC) has closed its European government-bond trading business due to low returns from the region.
Gillian McArdle, a spokeswoman for RBC Capital Markets, said: "This tactical adjustment in our product offering is consistent with our strategy of being active in the markets in which we add the most value to our clients."
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The five traders on the desk were informed of the decision, according to media reports.
In May, the company said that the trading revenue across the bank fell 26% to C$566 million (US$549.6 million) in the three months ending 30 April from a year earlier.
Gordon Nixon, CEO of RBC, said: "The ‘prolonged recession’ in Europe affected the firm’s bottom line during the quarter.
"Trading was particularly soft in the latter part of the quarter, due to persistent weakness, particularly in Europe," Nixon said.
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