RBC Looking at China, Middle East to Diversify, CEO McKay Says

(Bloomberg) — Royal Bank of Canada is looking at China and the Middle East as it diversifies its markets in the face of the geopolitical turmoil sparked by US President Donald Trump’s tariff policies and threats to take over Greenland.

“Our strategy has not included China, up until now,” and “now we have to review that,” Chief Executive Officer David McKay told Bloomberg Television in Davos on Wednesday. “I cannot say how we would go about it, but if the trade continues to diversify and Canadian corporates invest in China, then we will have to be a part of it.”

McKay’s comments follow warnings by Canada’s Prime Minster Mark Carney of a historic “rupture” in his country’s ties with the US in a “new world order” as he signaled a strategic partnership with China during a trip to Beijing last week.

The Toronto-based lender’s current focus is the Middle East, McKay added.

“One of the themes of Davos is the Middle East is a great place to invest,” he said. There are “significant commitments on both sides” in terms of trade, he added.

At the same time, the US remains RBC’s “second home market,” where it continues to invest and lend. “It is a big part of our strategy,” he added.

RBC reported record annual earnings last fiscal year, helped by its capital-markets and wealth-management divisions. Shares have rallied more than 30% since the start of 2025.

–With assistance from Lisa Abramowicz and Annmarie Hordern.

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