Categories Earnings, Finance

Royal Bank of Canada’s Q1 earnings top estimates

Royal Bank of Canada (RY) reported better-than-expected revenue and earnings for the first quarter of 2019. Total revenue of CAD11.5 billion was up 6% from the same period last year.

Net income available to common shareholders rose 5% year-over-year to CAD3.09 billion and diluted EPS grew 7% to CAD2.15. Adjusted EPS was CAD2.19.

Net interest income grew 9% to CAD4.8 billion while non-interest income rose 6% to CAD6.7 billion. Return on equity dropped 70 basis points to 16.7% while common equity Tier 1 ratio rose 40 basis points to 11.4%.

The quarterly results were helped by underlying earnings growth in segments like Personal & Commercial Banking and Insurance while other divisions like Wealth Management and Capital Markets were negatively impacted by tough market conditions. The results also included investments in technology initiatives and higher provisions for credit losses.

Royal Bank of Canada Q4 earnings beat as higher interest rate lifts margins

Profits in Personal & Commercial Banking grew 3% year-over-year, driven by strong client-driven volume growth and higher deposit spreads from higher Canadian interest rates. Net income in Insurance jumped 31%, helped by favorable life retrocession contract renegotiations and lower claims costs.

In Wealth Management, profits remained flat. In the Investor & Treasury Services and Capital Markets segments, profits declined 26% and 13% respectively, due to factors such as lower funding and liquidity revenue, higher costs, and lower revenue due to challenging market conditions and lower issuance activity.

Royal Bank of Canada shares closed the last trading session lower. The stock has gained over 13% thus far this year.


Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight