By Dave Sebastian
Royal Bank of Canada said its profit for the latest quarter rose as client activity rose and equity trading was higher, primarily in the U.S.
The Toronto-based bank on Wednesday posted a profit of 3.85 billion Canadian dollars ($3.06 billion) for the fiscal first quarter, up 10% from the same period a year ago. Earnings were C$2.66 a share.
The company set aside C$110 million for credit losses in the three months ended Jan. 31.
Return on equity, or a measure of return on total capital invested in the company's business, was 18.6%.
Net income in personal and commercial banking was C$1.79 billion, up 6% from a year ago, due to strong average volume growth in Canadian banking and lower provision for credit losses. Wealth management profit rose 4% to C$649 million due to average loan growth and higher average fee-based client assets, reflecting market appreciation and net sales, net of associated higher compensation.
Insurance net income rose 11% to C$201 million due to improved claims experience and higher favorable investment-related experience. Investor and treasury services profit fell 14% to C$123 million due to lower funding and liquidity revenue amid a less favorable interest-rate environment and higher enterprise liquidity. Capital markets net income rose 21% to C$1.07 billion due to higher equity trading, primarily in the U.S.
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires
February 24, 2021 06:43 ET (11:43 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.