By Adriano Marchese
Royal Bank of Canada on Wednesday reported a 34% rise in third-quarter profit, benefiting from strong performances from its personal and commercial banking and capital markets businesses in the period.
For the period ended July 31, the Canadian financial services company, the largest bank in Canada by market capitalization, said earnings per share were 2.97 Canadian dollars ($2.36), up from C$2.20 in the comparable quarter a year ago. This is above analyst expectations of C$2.63 a share.
Net income rose 34% to C$4.3 billion.
Notably, net income from its personal and commercial banking segment--its largest--rose 55%, contributing C$2.11 billion in the quarter, while capital markets rose C$180 million to C$1.13 billion.
Return on equity--a measure of return on total capital invested in its business--was 19.6% in the period, an increase of 390 basis points.
Common equity tier 1 rose 160 basis points in the quarter to 13.6%.
The company said the board of directors declared a quarterly dividend of C$1.08 a share, payable on Nov. 24.
Write to Adriano Marchese at email@example.com
(END) Dow Jones Newswires
August 25, 2021 06:48 ET (10:48 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.