IBOS member Royal Bank of Canada (RBC) today reported a record net income of $11,469 million for the year ended 31 October 2017, up $1,011 million (10%) from the prior year.
Results were driven by strong earnings in: Personal& Commercial Banking, Wealth Management, Capital Markets and Investor & Treasury Services, partially offset by lower earnings in Insurance. Results also reflect strong credit quality.
As of 31 October 2017, RBC’s Basel III Common Equity Tier 1 (CET1) ratio was 10.9%, up 10 bps from the prior year. In addition, the bank increased its quarterly dividend twice during 2017, for an annual dividend increase of 7%.
Dave McKay, RBC President and CEO, commented:
“We had a great year in 2017, with record earnings of $11.5 billion, driven by robust growth across our businesses and a disciplined approach to risk management. We also returned a record $8.2 billion of capital in dividends and share buybacks, demonstrating our ongoing commitment to shareholders while delivering on our growth strategies.
“As we reimagine the role we play in our customers’ lives, we are accelerating our digital investments and finding new ways beyond traditional banking to add value to our clients, employees and communities.”
Earnings of $2,837 million were up $294 million or 12% from a year ago, as higher results in Personal & Commercial Banking, Capital Markets, Wealth Management, and Insurance were partially offset by lower earnings in Investor & Treasury Services. Earnings were up $41 million or 1% from Q3 2017, largely due to stronger earnings in Insurance, Personal & Commercial Banking, and Wealth Management.
Access the full financial results via RBC here.