RBC Bets on AI for Growth Amid Trade Uncertainty

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Royal Bank of Canada (RBC, RY.TO) is set to generate C$700 million to C$1 billion from its AI investments by 2027, CEO Dave McKay revealed at the bank’s first investor day since 2018. The revenue will come from business growth and technology cost savings, underscoring AI’s crucial role in RBC’s expansion strategy.

AI-Driven Innovation

McKay highlighted how generative AI can enhance employee capabilities, improve customer service, and automate key processes. RBC is utilizing Nvidia (NVDA.O) chips to create AI-powered avatars capable of engaging personal banking clients and offering product insights.

Growth Targets & Market Expansion

Despite trade uncertainties and potential tariff disruptions, RBC remains committed to achieving a 16% return on equity by 2027. The bank aims to:

  • Expand globally in capital markets and wealth management

  • Increase its U.S. market share, competing with Wall Street giants like JP Morgan

  • Strengthen personal banking and wealth segments in Canada

Challenges Ahead

RBC executives acknowledged that tariff-related uncertainties may slow corporate investment. However, they emphasized that long-term growth strategies remain unchanged.

RBC’s stock was down 0.9% in Toronto during afternoon trading.

Foxconn to Host EV Seminar in Japan to Attract Automakers

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Foxconn (2317.TW) is set to hold an electric vehicle (EV) strategy seminar in Japan on April 9, aiming to strengthen ties with Japanese automakers and suppliers, sources revealed. The event follows Foxconn’s recent deal with Mitsubishi Motors, marking its first EV manufacturing contract with a Japanese brand.

Foxconn’s EV Push

Foxconn, widely known for producing iPhones for Apple and AI servers for Nvidia, has been expanding into the EV market under its Contract Design and Manufacturing Service (CDMS) model. The upcoming seminar aims to deepen understanding of its EV strategy among automakers and suppliers, one source stated.

Jun Seki, Foxconn’s Chief EV Strategy Officer and former Nissan executive, is expected to speak at the event.

Mitsubishi Deal & Industry Impact

Foxconn recently secured an EV manufacturing contract for Mitsubishi Motors, with production aimed at Oceania markets, including Australia, New Zealand, and Taiwan. The deal signals a major shift in Japan’s auto industry, which faces rising competition from Chinese EV makers like BYD.

The Mitsubishi contract represents a significant breakthrough for Foxconn’s five-year-old EV initiative, which had previously struggled with failed deals involving Geely and Lordstown Motors. Analysts suggest the agreement validates Foxconn’s EV manufacturing capabilities and enhances its reputation in the automotive industry.

Ukraine’s State Railway Partially Restores Online Services After Cyberattack

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Ukraine’s state railway operator, Ukrzaliznytsia, has partially restored its online services following a large-scale cyberattack that disrupted both passenger and freight transport systems. The attack, first reported on Sunday, caused a major IT failure, forcing passengers to buy tickets on-site or onboard trains.

Restoration Efforts Underway

Ukrzaliznytsia announced via Telegram that online ticket sales have resumed in a backup format, allowing passengers to purchase and refund tickets. However, the system is currently under heavy load, leading to potential temporary technical issues. The company urged passengers to only use the service for urgent travel needs.

Impact and Response

Despite ongoing technical challenges, the first 12,000 tickets have already been purchased since services were restored. Ukrzaliznytsia continues to work on fully stabilizing its digital infrastructure in the wake of the cyberattack.