(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.
“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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