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Royal Bank of Canada reported record net income

Staff writer |
Royal Bank of Canada reported record net income of $2,304 million for the quarter ended July 31, 2013, up $64 million or 3% from the prior year and up $368 million or 19% from last quarter.

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Royal Bank also announced an increase to the quarterly dividend of $0.04 or 6%, to $0.67 per share. Excluding specified items, net income was $2,214 million, up $236 million or 12% from last year and up $247 million or 13% from last quarter.

Personal & Commercial Banking net income was a record $1,180 million, up $78 million or 7% compared to last year, largely due to solid volume growth across all businesses in Canada and lower provision for credit losses (PCL) reflecting improved credit quality.

The inclusion of our acquisition of Ally Canada also contributed to the increase. Excluding the prior year's favourable mortgage prepayment adjustment, net income increased $170 million or 17%.

Wealth Management net income was a record $236 million, up $80 million or 51% compared to last year, mainly due to higher average fee-based client assets resulting from net sales and capital appreciation. Higher transaction volumes also contributed to the increase.

Excluding an unfavourable impact of $29 million ($21 million after-tax) related to certain regulatory and legal matters in the prior year, earnings were up $59 million or 33%. Compared to the prior quarter, net income was up $11 million or 5%, mainly due to higher average fee-based client assets.


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