Revenue reached $15.07 billion, up from $12.69 billion a year ago, and its provision for loan losses reached $840 million, up from $720 million in the same quarter last year. On an adjusted basis, RBC said it earned $3.07 per diluted share in its most recent quarter, up from adjusted earnings of $2.65 per diluted share last year. The average analyst estimate was for adjusted earnings of $3.01 per share, according to data provided by LSEG Data & Analytics.
“As our results demonstrate, our premium franchises have delivered diversified profit growth, supported by a strong balance sheet and prudent risk management,” RBC chief executive Dave McKay said in a statement. “One of the highlights of our year was the acquisition of HSBC Bank Canada, which marked a milestone in our customer-driven growth story and strengthened our position as a competitive global financial institution.”
RBC said its banking business earned $1.58 billion, up from $1.37 billion a year earlier, helped by the inclusion of HSBC Canada’s results.
Meanwhile, the bank’s commercial operations earned $774 million, up from $668 million, also helped by the addition of HSBC Canada. RBC’s wealth management business earned $969 million, up from $272 million, and its insurance operations earned $162 million, up from $97 million a year earlier. The bank’s capital markets business earned $985 million in the quarter, down from $987 million a year ago.
The RBC business segment reported a loss of $247 million primarily due to the after-tax impact of HSBC Canada costs and consolidation compared with a profit of $549 million for the segment last year.
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Scotiabank reports Q4 profit up despite continued loan stress
Scotiabank (BNS / TSX) says it expects to see continued pressure on loan growth and political uncertainty in the coming months as it reported a profit that was up from last year but below analyst expectations. The bank started its year-end results in the sector on Tuesday as it reported a fourth-quarter profit of $1.69 billion, up from $1.35 billion in the same period last year, as it set aside a smaller amount of bad loans compared to the year. ago.
Profits were hit by taxes and a write-down of its Chinese bank holdings, while its Canadian operations were hit by a softer economy, said chief executive Scott Thomson.
“The realities of a slowing economy and the impact of high interest rates made for a challenging operating environment,” he said on a conference call with analysts. For the rest of the year, earnings have grown “slightly” on small loan growth, Thomson said, but he expects the market to pick up in the latter half of next year as interest rates continue to fall. “We expect further reductions during the first half of the year, which we expect will encourage activity in the housing and mortgage markets as well as consumer and business confidence,” Thomson said.
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