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RBC reports $3.2B profit, record earnings in capital markets business

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Mortgage deferral ‘cliff’ is coming
Justin Havre, with RE/MAX joins Global News Morning Calgary to discuss options for those who deferred their mortgage when the pandemic started. – Aug 1, 2020

Royal Bank of Canada topped expectations as it reported a profit of $3.20 billion for its latest quarter compared with $3.26 billion a year earlier.

The bank says the result came as it posted record earnings in its capital markets business as well as solid earnings in insurance, offset by lower results in its personal and commercial banking, wealth management and investor and treasury services businesses.

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Mortgage deferral deadline looming

The profit amounted to $2.20 per diluted share for the quarter ended July 31, down from $2.22 per diluted share a year ago. Revenue totalled $12.92 billion, up from $11.54 billion in the same quarter last year.

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On an adjusted basis, RBC says it earned $2.23 per diluted share in its latest quarter compared with an adjusted profit of $2.26 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.81 per share, according to financial markets data firm Refinitiv.

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