Revenue totalled $15.07 billion, up from $12.69 billion a year ago, while its provision for credit losses amounted to $840 million, up from $720 million in the same quarter last year. On an adjusted basis, RBC says it earned $3.07 per diluted share in its latest quarter, up from an adjusted profit of $2.65 per diluted share a year earlier. The average analyst estimate had been for an adjusted profit of $3.01 per share, according to data provided by LSEG Data & Analytics.
“As our results exemplify, our premium franchises delivered diversified revenue growth, underpinned by a strong balance sheet and prudent risk management,” RBC chief executive Dave McKay said in a statement. “One of our year’s defining moments was the acquisition of HSBC Bank Canada, which marked a pivotal milestone in our client-driven growth story and strengthened our position as a competitive global financial institution.”
RBC said its personal banking business earned $1.58 billion, up from $1.37 billion a year earlier, helped by the inclusion of HSBC Canada results.
Meanwhile, the bank’s commercial banking operations earned $774 million, up from $668 million, also helped by the addition of HSBC Canada. RBC’s wealth management business earned $969 million, up from $272 million, while its insurance operations earned $162 million, up from $97 million a year ago. The bank’s capital markets business earned $985 million for the quarter, down from $987 million a year ago.
RBC’s corporate segment reported a loss of $247 million primarily due to the after-tax impact of the HSBC Canada transaction and integration costs compared with profit of $549 million for the segment a year ago.
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Scotiabank reports Q4 profit up despite continued loan pressure
Scotiabank (BNS /TSX) says it expects to see continued loan growth pressure and political uncertainty in the months ahead as it reported profits that were up from a year ago but below analyst expectations. The bank kicked off year-end results for the sector on Tuesday as it reported a fourth-quarter profit of $1.69 billion, up from $1.35 billion in the same period last year, as it set aside a smaller amount for bad loans compared with a year ago.
Profits were hit by taxes and a write-down of its holding in a Chinese bank, while its Canadian operations were affected by the softening economy, said chief executive Scott Thomson.
“The realities of a slowing economy and the impact of peak interest rates made for a challenging operating environment,” he said on a conference call with analysts. For the year as a whole, earnings grew “marginally” on modest loan growth, said Thomson, but that he expects the market to improve in the latter half of next year as interest rates continue to fall. “We anticipate additional easing through the first half of the year, which we expect will be stimulative to activity in the domestic housing and mortgage markets and buoy consumer and business confidence,” Thomson said.
