Skip to Content
Global News Select

Royal Bank of Canada 1Q Profit Rises

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


(END) Dow Jones Newswires

February 24, 2021 06:43 ET (11:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.