Royal Bank of Canada beat analyst estimates in the third quarter, powered by strength in capital markets and wealth management. The bank reported profit of $6.02 billion, up from $5.41 billion a year earlier, with earnings of $4.23 per diluted share, up from $3.75. On an adjusted basis, earnings were $4.28 per share, compared with $3.84, while analysts had expected $4.08 per share and $18.14 billion in revenue. Revenue came in at $18.54 billion, up from $16.99 billion, and provisions for credit losses rose to $1 billion from $881 million. Jefferies analysts said the results reinforce their view that RBC's diversified business mix drives its premium return on equity, noting the bank's ROE rebounded to 18.1% against a peer average of 16%. Shares were down 1.9% in Toronto and 1.8% in New York.
Royal Bank of CanadaRBC beat profit estimates with strong capital markets and wealth management, and ROE rebounded to 18.1%.
Jefferies Financial Group Inc