Royal Bank of Canada Reports Strong Q3 Results

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Royal Bank of Canada (RBC) has announced its fiscal third-quarter results, surpassing expectations with both profit and revenue growth. Despite higher provisions for credit losses, RBC’s largest businesses drove strong growth during the period.

Financial Performance

  • Net income for the three months ending July 31 reached 3.9 billion Canadian dollars ($2.9 billion), or C$2.73 a share. This compares to C$3.58 billion, or C$2.51 a share, in the same period last year.
  • Adjusted earnings rose by over 11% to C$2.84 a share, exceeding analysts’ expectations of C$2.72 a share.
  • Total revenue increased to C$14.49 billion, up from C$12.13 billion, beating analyst expectations of C$12.82 billion.
  • Return on equity remained steady at 14.6%.

Growth in Core Businesses

RBC experienced growth across all of its core businesses, demonstrating the strength and resilience of its operations.

Capital Markets Segment

  • Net income in RBC’s capital markets segment rose by 57% to C$938 million.
  • The increase was primarily driven by higher revenue in corporate and investment banking.

Personal and Commercial Banking

  • RBC’s largest segment, personal and commercial banking, saw a 5% increase in net income to C$2.13 billion.
  • The growth was mainly attributed to higher net interest income, as well as increased deposits and loans.

Provision for Credit Losses

RBC allocated C$616 million for credit losses, compared to C$340 million in the previous period. This provision allows for potential bad or uncollected debt.

Strong Capital Position

RBC’s Tier 1 common equity ratio, which measures the bank’s capital against its riskier assets, improved by 100 basis points to reach 14.1%.

For inquiries or more information, please contact RBC Investor Relations.

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