RBC’s Q1 profit down from last year, but revenue up
Royal Bank of Canada’s first quarter earnings of $3.21 billion decreased from $4.1 billion in the prior year period due to higher loan loss reserves.
Diluted earnings per share were $2.29 for the quarter ended Jan. 31, down from $2.84 per diluted share in the same quarter last year, the bank said.
Revenue increased to $15.09 billion from $13.07 billion a year ago.
The bank’s loan loss reserves reached $532 million, up from $105 million a year ago.
On an adjusted basis, RBC said it earned $3.10 per diluted share in the latest quarter from adjusted earnings of $2.87 per diluted share in the previous quarter.
On average, analysts expected quarterly earnings of $2.94 per diluted share, according to estimates compiled by financial markets data firm Refinitiv.
“Our first quarter results demonstrate that we are delivering strong revenue growth from our diversified business models while carefully managing risk,” said Dave McKay, Chief Executive Officer of RBC, in a statement.
RBC said personal and commercial banking revenues were $2.13 billion, up from $1.97 billion a year ago. As well as higher effective tax rates.
The bank’s wealth management business earned $848 million, up from $821 million a year ago, while RBC’s Insurance division earned $148 million, up from $197 million a year ago. I was.
RBC’s Capital Markets division posted revenue of $1.22 billion, up from $1.12 billion in the first quarter of 2022.
This report by The Canadian Press was first published on March 1, 2023.