IBOS member Royal Bank of Canada (RBC) today, 24 May 2018, reported a net income of $3,060 million for Q2 2018 ended 30 April 2018.
RBC’s net income is up $251 million (9%) from Q2 2017, with double-digit diluted earnings per share (EPS) growth of 11%. Results reflect strong earnings growth in Wealth Management, Personal & Commercial Banking, and Investor & Treasury Services, and solid earnings in Insurance. Its Capital Markets performance was also stable, amidst less favourable market conditions.
RBC’s strong credit quality also contributed to results, with provision for credit losses (PCL) on impaired loans ratio of 22 basis points (bps) reflecting a benign credit environment.
Compared to Q4 2017, net income was up $48 million (2%), though market-related revenue moderated from strong first quarter levels. Continued margin expansion and strong loan growth on both sides of the border helped to offset the impact of a less favourable market environment and fewer days in the current quarter.
Below are the financial highlights of Q2 2018, in comparison to Q2 2017:
- Net income of $3,060 million (an increase of 9%)
- Diluted EPS of $2.06 (an increase of 11%)
- Return on Equity (ROE)(3) of 18.1% (an increase of 9% bps)
- Common Equity Tier 1 (CET1) (4) ratio of 10.9% (an increase of 30% bps)
Read the full financial report, via RBC, here.