Royal Bank of Canada topped expectations as it reported its first-quarter profit rose compared with a year ago, helped by strength in its personal and commercial banking and wealth management operations.
The bank said Thursday it earned net income of $4.1 billion or $2.84 per diluted share for the quarter ended Jan. 31, up from $3.8 billion or $2.66 per diluted share in the same quarter a year earlier.
Revenue totalled nearly $13.1 billion, up from $12.9 billion a year earlier.
Provisions for credit losses amounted to $105 million for the quarter compared with $110 million in the same quarter last year.
On an adjusted basis, RBC says it earned $2.87 per diluted share for the quarter, up from an adjusted profit of $2.69 per diluted share a year ago.
The average analyst estimate had been for an adjusted profit of $2.73 per share, according to financial markets data firm Refinitiv.
“RBC’s first-quarter performance reflects the significant momentum we continue to build while facing change and uncertainty in the current operating environment,” RBC chief Dave McKay said in a statement.
“Looking forward, we remain focused on our purpose-led approach to delivering the advice, products and services our clients need in a changing world, while also accelerating our commitments to enable a sustainable and inclusive future.”
RBC’s personal and commercial banking business reported a profit of $1.97 billion, up from $1.79 billion a year earlier, helped by strength in its Canadian banking business including residential mortgage growth.
RBC’s wealth management arm earned $795 million, up from $641 million, while its capital markets business earned $1.03 billion, down from nearly $1.07 billion a year ago.
The bank’s investor and treasury services operations earned $118 million, down from $123 million a year ago, while RBC’s insurance operations earned $197 million, down from $201 million in the same quarter a year earlier.