IBOS member Royal Bank of Canada (RBC) reported a record net income of $12,871 million for the year ended 31 October 2019, up $440 million or 4% from the prior year, with diluted EPS growth of 5%.
These results reflected strong earnings growth in Personal & Commercial Banking and Wealth Management, as RBC continued to leverage its scale and unique client value proposition to drive strong client-driven volumes. Solid results in Insurance were mainly driven by the impact of new longevity reinsurance contracts. These were partially offset by lower earnings in Investor & Treasury Services, primarily due to lower funding and liquidity revenue and severance and related costs associated with repositioning of the business, and in Capital Markets, due to a challenging market environment. RBC’s results also reflect an increase due to foreign exchange translation.
In Personal & Commercial Banking, net income of $1,618 million increased $80 million or 5% from a year ago, mainly due to average volume growth of 6% in loans and 10% in deposits in Canadian Banking, benefiting from solid housing activity, RBC’s growing client-facing sales force as well as a favourable interest rate environment.
90-day Active Mobile users increased 16% from a year ago to 4.5 million, resulting in a 20% increase in mobile sessions. Digital adoption increased to 52%. In September 2019, RBC announced the launch of the RBC Insight Edge™ platform for its business banking clients across Canada. RBC Insight Edge™ is a first-of-its-kind Canadian platform that RBC advisers will use to provide clients with relevant insights about their industry performance, customers, and markets. RBC Insight Edge™ leverages the Bank’s expertise in information management and insight development, which is safeguarded by rigorous privacy standards to help business owners and managers turn insights into actions that improve client loyalty and productivity and drive growth.
Read the full Q4 2019 and 2019 Full Year results via RBC here.