RBC's quarterly profit exceeds market forecast

Royal Bank of Canada announces a 15% increase in third-quarter net income of $ 3.25 billion, surpbading badysts' expectations of a new record annual profit of $ 12.4 billion of dollars.

The Toronto bank's results for the three-month period ended October 31 were driven by strong performance in personal and commercial banking, capital markets, wealth management and insurance.

"Our mix of businesses and diversified geographies has generated strong revenue growth, while we manage risk conservatively and generate return on equity," said Dave McKay, President and Chief Executive Officer. RBC, in a statement.

"In the future, we remain focused on our investments in people and technology, and we offer more personalized perspectives and connectivity to deliver greater value to both our customers and our customers." shareholders. "

The bank's fourth-quarter profit was $ 2.20 per diluted share, compared to $ 1.88 per share the previous year.

On the basis of adjusted liquidity, the bank reported having earned $ 2.24 per share, up from $ 1.92 for the same period in 2017. Analysts had expected an average earnings per share of 2.12 USD, according to Thomson Reuters Eikon.

During the quarter, the bank's personal and commercial banking division reported net income of $ 1.54 billion, up 10% from last year. This increase is largely due to the improvement in interest rate spreads related to Canadian interest rates. RBC also posted average volume growth of 5%. Canadian banks, driven by growth in residential mortgages, commercial loans and deposit products.

The bank's net income from its capital markets arm rose 14% to $ 666 million, mainly due to a lower effective tax rate following US President Donald Trump's tax reforms.

Net income for RBC's Wealth Management division increased 13% to $ 553 million, while the Insurance Division's net income increased 20% to $ 553 million. was $ 318 million.

However, the bank's net income of $ 155 million was relatively stable compared to the previous year.

Provisions for credit losses, or bad debt funds, for the quarter were $ 353 million, up from $ 234 million in the fourth quarter of RBC in 2017.

For its full year, Canada's largest market-cap lender reported net income of $ 12.4 billion, up about 8% from $ 11.5 billion in 2017.

This represents diluted earnings per share of $ 8.36 on an annual basis, compared with $ 7.56 in fiscal 2017.

In the 12 months to October 31, RBC Personal and Commercial Banking grew 5% to $ 6.03 billion. Its wealth management division, which includes the Los Angeles-based City National Bank, has also been a good badet to the bank, with a 23% growth in its profits, which reached $ 2.27 billion for the bank. Fiscal year 2018.

Its main measure of financial health, known as the Tier 1 Common Equity Ratio (CET1), is 11.5%, up from 10.9 a year ago and 11.1 in the prior quarter.