Tuesday, March 28

RBC Beats Estimates as Investment-Banking Revenue Hits Record


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(Bloomberg) — Royal Bank of Canada is still benefiting from the pandemic-era boom in capital markets.

RBC Capital Markets’ revenue rose to C$2.81 billion ($2.19 billion) in the fiscal first quarter, up 3.8% from a year earlier, the Toronto-based bank said Thursday. That compares with 1% growth in the third quarter and a decline in the fourth quarter. Overall profit topped analysts’ estimates.

Royal Bank’s capital-markets division has posted strong results throughout the pandemic, first from a boom in trading during the early days of the Covid-19 crisis, then from record dealmaking over the past year. Last quarter, the bank posted record investment-banking revenue.

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“RBC’s first-quarter performance reflects the significant momentum we continue to build while facing change and uncertainty in the current operating environment,” Chief Executive Officer Dave McKay said in a statement.

Royal Bank shares have risen 4.7% this year, compared with a 5.6% gain for the S&P/TSX Commercial Banks Index.

Also in the results:

Net income rose 6.4% to C$4.1 billion, or C$2.84 a share. Excluding some items, profit was C$2.87 a share. Analysts estimated C$2.72, on average. Net loans and acceptances in the lender’s Canadian banking business rose 2.3% in the quarter from the previous three months.

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