Royal Bank of Canada beat profit expectations in its fiscal third quarter amid a sharp drop in provisions for credit losses and as its trading desks flexed their muscle.
Net income for the three months ending July 31 was $3.20 billion from $3.26 billion a year earlier. On an adjusted basis, RBC earned $2.23 per share; analysts, on average, expected the bank to earn $1.85.
The bank set aside $675 million in the period for loans that could go bad, approximately 76 per cent less than the $2.83 billion that RBC provisioned in the prior quarter as the COVID-19 pandemic took hold.
RBC's capital markets business was the star performer in the bank’s third quarter, as profit in that unit soared 45 per cent year-over-year to $949 million. RBC credited the growth primarily to gains in fixed-income trading operations.
The lender's other core units didn't fare nearly as well.
RBC's bread and butter personal and commercial banking operations saw profit slide 18 per cent, while earnings from wealth management dropped 12 per cent.
"We continue to navigate these uncertain times from a position of strength and stability," said President and CEO Dave McKay in a release Wednesday.
"Our robust capital and liquidity position, diversified business model, prudent approach to risk management, and technology capabilities provide the foundation to enable our people to continue supporting clients, providing advice and creating more value today and over the long-term."
https://news.google.com/__i/rss/rd/articles/CBMiaWh0dHBzOi8vd3d3LmJubmJsb29tYmVyZy5jYS9yYmMtYmVhdHMtcTMtZXN0aW1hdGVzLWFzLWNhcGl0YWwtbWFya2V0cy1wcm9maXQtc29hcnMtNDUtdG8tcmVjb3JkLTEuMTQ4NTA1OdIBAA?oc=5
2020-08-26 10:30:24Z
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