Royal Bank of Canada reported record fiscal third-quarter net income of $6.0 billion, up 11% year over year, with adjusted diluted earnings per share of $4.28, also up 11%, and total revenue climbing 9% to $18.538 billion. The results were broad-based, with Wealth Management net income jumping 32% to $1.4 billion, Capital Markets net income rising 16% to $1.5 billion on record Corporate and Investment Banking revenue, and Commercial Banking posting a record $936 million in net income, up 12%. The bank returned $4.0 billion to shareholders, split between $1.6 billion in buybacks and $2.4 billion in dividends, while return on equity climbed to 17.9%. However, CEO Dave McKay warned that newly implemented Section 338 tariffs on Canadian exports could shave roughly 40 basis points off Canadian GDP, and provisions for credit losses rose to $1.0 billion, with an additional $120 million provision tied to a former investment-grade utility borrower, as disclosed by Chief Risk Officer Graeme Hepworth. Insurance net income fell 20% to $197 million, though that decline was tied to favorable prior-year longevity reinsurance adjustments.
Royal Bank of CanadaRecord profit and EPS beat, with strong revenue growth and capital returns.
Wealth Management Inc