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(Reuters) -Royal Bank of Canada will look to expand its foothold in capital markets and wealth management globally, CEO Dave McKay said on Thursday, setting the stage for fiercer competition with its peers on Wall Street.

While RBC has scaled these businesses, its market share is "relatively small" and it still has room to grow, McKay said at the top Canadian bank's first investor day in seven years.

Capital markets have become a vital revenue stream for banks in recent years. Buoyed by an equities rally and a strong economy, more companies are pursuing takeovers and raising capital via stock and bond offerings.

"We're actively pursuing an ambition to become a leading global financial services partner," the CEO said.

The expansion could intensify competition between RBC and its rival heavyweights on Wall Street such as JPMorgan Chase and Goldman Sachs.

RBC will also look to increase its market share across all businesses in Canada, aligning with its strategy of strengthening presence in its home market.

While Canadian banks often seek growth south of the border, RBC has also invested in its domestic market, spending $10 billion to buy HSBC's Canadian unit last year.

The bank will target a return on equity of more than 16% in the medium term, it said. Artificial intelligence may help fuel some efficiency, according to McKay.

"We have an ambition to deliver more value and personalized experiences… and become more cost-efficient while doing so," McKay said.

However, uncertainties caused by tariffs could slow some of the bank's momentum, he said.

"Commercial client sentiment has weakened as companies in some sectors are deferring investments until they have greater certainty on tariff impacts to their businesses," he said.