Royal Bank of Canada reported net income of $15.8 billion for the year ended October 31, 2022, down $243 million or 2% from the prior year.
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Diluted EPS8of $11.06 remained unchanged from the prior year.
Consolidated results include total PCL of $484 million compared to $(753) million last year, primarily reflecting lower releases of provisions on performing loans in Personal ad Commercial Banking and Capital Markets due to unfavourable changes in our macroeconomic outlook in the current year.
Lower earnings in Capital Markets and Insurance were partly offset by higher results in Personal and Commercial Banking, Wealth Management and Investor and Treasury Services.
Pre-provision, pre-tax earnings of $20.6 billion were up 4% from a year ago, mainly reflecting higher net interest income driven by strong volume growth and higher spreads in Canadian Banking and Wealth Management.
These factors were partially offset by lower revenue in Capital Markets, including the impact from loan underwriting markdowns in Q3 2022, largely driven by challenging market conditions.
Results also reflected higher salaries, technology investments and discretionary costs to support strong client-driven growth.
The PCL on loans ratio of 6 bps increased 16 bps from the prior year.
The PCL on impaired loans ratio was 10 bps, flat from the prior year.
Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 12.6% supporting strong client-driven organic growth.
In addition, this year we returned $12.4 billion to our shareholders through common share buybacks and dividends.
And today, we declared a quarterly dividend of $1.32 per share reflecting an increase of $0.04 or 3%. ■
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