RBC tops expectations on strength in capital markets, commercial banking

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Photo by Cole Burston/BloombergCanada’s largest bank beat analysts’ third-quarter earnings expectations on higher profits in its capital markets, wealth management and commercial banking business segments.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountRoyal Bank of Canada‘s net income for the three months ending July 31 was $6 billion, up $610 million or 11 per cent compared to the same quarter last year, resulting in net earnings per share of $4.23.Its adjusted net income — which removes the impact of non-recurring items — was $6.1 billion, up 10 per cent compared to last year, resulting in adjusted earnings per share of $4.28, which beat analysts’ expectations of about $4.07.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“RBC continues to raise the bar,” said RBC chief executive Dave McKay said in a statement on Thursday. “In a faster-moving, more complex economy, we remain focused on building the bank to meet clients wherever they need us, with the capabilities, advice and insights to help them succeed.”RBC also announced a dividend of $1.76 per share — unchanged from the previous quarter and payable on November 24.Earnings in the bank’s wealth management and capital markets segments increased by 32 per cent to $1.44 billion and 16 per cent to $1.54 billion respectively, while its commercial banking segment rose by 12 per cent to $936 million. Earnings in the bank’s personal banking segment decreased by one per cent to $1.9 billion.The lender’s provision for credit losses (PCLs), or the amount of money that the bank kept aside to tackle loans that may potentially go bad, increased by $119 million to $1 billion when compared to the same quarter last year. This was due to higher provisions in the capital markets and personal banking segments. Compared to the previous quarter, PCLs rose by 10 per cent or $88 million.Earlier this month the bank announced the sale of payment processor Moneris Solutions Corp., which it jointly owned with the Bank of Montreal. Once the sale of the company that helps businesses accept card and digital payments is completed, RBC expects to earn about $475 million after tax.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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