Financial Results
RBC's Net Income Rises, Buoyed By Wealth Results
The Royal Bank of Canada releases its financial results, noting that wealth management net income rose strongly in the reporting period.
Royal Bank of Canada yesterday reported net income of C$4 billion ($2.92 billion) for the quarter ending on April 30, 2024, up by $270 million or 7 per cent from the same period a year ago, with record earnings in capital markets as well as higher results in wealth management.
Record earnings in capital markets as well as higher results in personal and commercial banking, wealth management and insurance were partially offset by lower results in corporate support, the Toronto-listed bank said in a statement.
In wealth management, net income of C$769 million increased by $50 million or 7 per cent since a year ago, primarily due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. Compared with last quarter, net income increased by C$163 million or 27 per cent, the bank added.
Last March, RBC also completed the acquisition of HSBC Bank Canada, the inclusion of which dented net income by C$51 million. The results also reflected the impact of specified items relating to the acquisition of HSBC Canada (HSBC Canada transaction). Pre-provision, pre-tax earnings of C$5.8 billion were up $801 million or 16 per cent from last year, mainly due to higher revenue in RBC’s capital markets business, higher net interest income reflecting higher spreads and solid volume growth, and higher fee-based client assets reflecting market appreciation and net sales.
Compared with last quarter, net income was up 10 per cent, reflecting higher results in wealth management, corporate support and capital markets, partially offset by lower results in insurance and personal and commercial banking.
RBC also declared a quarterly dividend of C$1.42 per share reflecting an increase of C$0.04, or 3 per cent.
The lender said it had a Common Equity Tier 1 ratio – a standard in international measure of "shock absorber" capital – of 12.8 per cent.
