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.
- 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.