RBC profits exceed expectations supported by strong performance in most business sectors

Toronto —
Royal Bank of Canada reported quarterly results stronger than analysts' expectations, supported by good performance in most of its business lines and lower loan loss provisions than estimates.

The bank achieved adjusted earnings of $3.90 per share in the second fiscal quarter, surpassing the average analyst expectations of $3.77.

Net income reached $5.51 billion during the three months ending in April, compared to expectations of $5.31 billion, and an increase of 26% from the same period last year.

The performance was supported by growth in interest and fee revenues, with net interest income reaching $8.51 billion, while non-interest revenues amounted to $8.95 billion.

The capital markets unit recorded net income of $1.48 billion, exceeding expectations, while the wealth management unit achieved $1.19 billion, a strong increase from last year although slightly below expectations.

The personal banking unit in Canada, the bank's largest activity, recorded net income of $1.87 billion, higher than analysts' estimates.

On the credit front, the bank allocated $912 million for loan losses, a level lower than expected, which helped support the final results.

RBC also announced a 7% increase in quarterly dividends to $1.76 per share, along with a plan to repurchase up to 45 million common shares, equivalent to about 3% of its outstanding shares.