Royal Bank of Canada (RBC) has kicked off an
integrated marketing campaign across the country to promote its
aggresively priced home-equity loan product.
RBC is running outdoor billboard ads supported
by radio and newspaper advertising to promote its home-equity loan
rate of 0.5% above prime compared to 1% above prime charged by the
majority of its rivals.
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Only Bank of Montreal currently matches RBC’s
home-equity rate; Scotiabank, CIBC and Toronto Dominion charge 1%
above the country’s prime rate of 3%.
Last year, RBC’s head of Canadian banking,
Dave McKay, told RBI that RBC’s home equity line of credit, or
HELOC, was one of the most successful products the lender had ever
launched.
Good start to the year
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By GlobalDataRBC kicked off the current fiscal year looking
to grow its domestic lending volume 25% more than its peers.
For the three months to 30 April, RBC posted a
net profit of C$1.51bn($1.54bn), up 13% from the year ago
quarter.
Net profit at RBC’s domestic operations,
headed up by McKay, rose by 16% to C$851m.
But RBC missed analyst forecasts for the sixth
quarter in seven, not helped by another poor set of results from
its international business unit. It lost C$23m, marginally ahead of
the C$27m loss of the previous year.
