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IBOS member bank Royal Bank of Canada (RBC) has reported a record net income of $12,431 million for the year ended 31 October 2018, up $962 million (8%) from the prior year.

RBC reported a strong earnings growth in Personal & Commercial Banking and Wealth Management reflected benefits from higher Canadian and US interest rates and solid volume growth.

Strong Capital Markets earnings were driven by a lower effective tax rate and higher revenue in Corporate and Investment Banking, and higher Insurance earnings were largely driven by favourable investment-related experience.

As of 31 October 2018, RBC’s Basel III Common Equity Tier 1 (CET1) ratio was 11.5%, up 60 bps from the prior year. In addition, RBC increased its quarterly dividend twice during 2018, for an annual dividend increase of 8%.

RBC’s 2018 full year business segment performance is characterised from the below:

  • 5% earnings growth in Personal & Commercial Banking
  • 23% earnings growth in Wealth Management
  • 7% earnings growth in Insurance
  • Investor and Treasury Services net income was flat and included improved margins, growth in client deposits and higher revenue in the Bank’s asset services business
  • 10% earnings growth in Capital Markets


RBC’s Q4 2018 highlighted earnings of $3,250 million increased $413 million (or 15%) from a year ago, driven by higher results in Personal & Commercial Banking, Capital Markets, Wealth Management, and Insurance. Investor & Treasury Services results were relatively flat. Earnings were up $141 million (5%) from Q4 2017.

Below is Q4 2018 compared to Q4 2017:

  • Net income of ¢3,250 million (increase of 15%)
  • Diluted EPS of $2.20 (increase of 17%)
  • ROE2 of 17.6% (increase of 100 bps)
  • CET1 ratio of 11.5% (Increase of 60 bps)


Below is Q4 2018, in comparison with Q3 2018:

  • Net income of $3,250 million (increase of 5%)
  • Diluted EPS of $2.20 (increase of 5%)
  • ROE2 of 17.6% (increase of 30 bps)
  • CET1 ratio of 11.5% (increase of 40 bps)


Read the full earnings release via RBC here.