Royal Bank of Canada beat expectations as it reported it earned $4.3 billion in its latest quarter, up from $3.2 billion in the same quarter last year.
The bank said Wednesday the profit amounted to $2.97 per diluted share for the quarter ended July 31, up from $2.20 per diluted share a year earlier.
Revenue totalled $12.8 billion, down from $12.9 billion last year.
The results came as the bank reversed $540 million of its provisions for credit losses in the quarter compared with the $675 million it set aside in the same quarter last year.
RBC says its adjusted earnings per share totalled $3 per diluted share for the quarter compared with an adjusted profit of $2.23 per diluted share a year earlier.
Analysts on average had expected a profit of $2.71 per share, according to financial market data firm Refinitiv.
“Our diversified businesses and disciplined approach to risk and cost management underpinned our results, supported by the significant investments we’ve made in technology and talent to fuel our momentum and deliver differentiated value to those we serve,” RBC CEO Dave McKay said in a statement.
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“We remain cautiously optimistic about the macroeconomic outlook and focused on supporting clients and communities through the ongoing recovery.”
RBC said its personal and commercial banking business earned $2.11 billion, up from $1.37 billion a year ago, helped by a reversal in its provisions for credit losses.
Wealth management reported a profit of $738 million compared with $562 million in the same quarter last year, while RBC’s insurance business earned $234 million, up from $216 million a year ago.
RBC’s capital markets arm earned $1.13 billion, up from $949 million in the same quarter last year, helped by the reversal in its provisions for credit losses and record corporate and investment banking revenue.
Investor and treasury services saw net income of $88 million, up from $76 million a year ago.
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