IBOS member RBC has announced their financial results of Q3 2016 ended 31 July 2016, in a report released on 24 August 2016.
RBC reported a record net income of $2,895 million in the third financial quarter of 2016. This has seen an increase of $420 million or 17% from a year ago and up $322 million, or 13%, from last quarter.
After the sale of RBC’s General Insurance Company to Aviva Canada Inc., the net income of $2,660 million was up $185 million or 7% compared to last year. The results are reflected on the strong earnings in Wealth Management and, strong earnings in Capital Markets and higher earnings in Personal & Commercial Banking. RBC’s results also reflect improved credit quality, mainly due to lower provision for credit losses (PCL) in the oil and gas sector, with a ratio of 0.24%.
“RBC had a record third quarter, delivering reported earnings of over $2.8 billion and $7.9 billion for the first nine months of the year, demonstrating the strength of our diversified business model and our disciplined risk and efficiency management. Our strong capital position enabled us to repurchase $292 million of common shares in the third quarter and I’m pleased to announce a 2% increase to our quarterly dividend,” said Dave McKay, RBC President and Chief Executive Officer. “We remain focused on prudently managing risks and costs while innovating to enhance the client experience and deliver long-term shareholder value.”
Highlights of RBC’s third quarter 2016 results (compared to third quarter 2015), include:
- Net income of $2,895 million (up 17% from $2,475 million)
- Diluted earnings per share (EPS) of $1.88 (up $0.22 from $1.66)
- Return on common equity (ROE) of 18.0% (down 10 bps from 18.1%)
- Basel III CET1 ratio of 10.5% (up 40 bps from 10.1%)
Access the full report, via RBC’s website, here.