IBOS member Royal Bank of Canada (RBC) today (23 August) reported a net income of $2,796 million for Q3 2017, ended 31 July 2017.
Excluding an after-tax gain of $235 million from the sale of RBC’s home and auto insurance manufacturing business in the prior year, net income was up $136 million (5%). Results reflect strong earnings growth in Wealth Management, Insurance excluding the prior year gain on sale, and Investor & Treasury Services, as well as solid earnings in Personal & Commercial Banking.
Compared to Q2 2017, net income was relatively unchanged. Credit quality remains strong, with a provision for credit losses (PCL) ratio of 0.23%. RBC also remains well-capitalised with a Common Equity Tier 1 (CET1) ratio of 10.9%. Additionally, today RBC announced an increased to its quarterly dividend of $0.04 (5%) to $0.91 per share.
Dave McKay, RBC President and Chief Executive Officer, commented:
“RBC had a solid third quarter and strong results for the first nine months of the year, and we are proud to have been ranked highest in overall customer satisfaction for the second year in a row. I am also pleased to announce a 5% increased to our quarterly dividend as part of our commitment to deliver long-term shareholder value.
“We are driving sustainable growth by further investing in our people, digital capabilities, and key markets, while leveraging our strengths in data and technology to exceed our clients’ expectations.”
Below are RBC’s financial highlights of YTD 2017, compared to YTD 2016:
- Net income of $8,632 million (up 9% from 2016)
- Diluted EPS of $5.67 (up 11% from 2016)
- ROE of 17.2% (up 70 bps from 2016)
Read the full Q3 2017 report as a PDF via RBC here.