Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Royal Bank of Canada posts dip in Q4 income amid macroeconomic uncertainty

Stock Markets Nov 30, 2022 10:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
RY
+0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Scott Kanowsky 

Investing.com -- Royal Bank of Canada (NYSE:RY) has reported a marginal decline in fourth-quarter earnings, as weakness at its capital markets division was offset by a rise in profit in personal and commercial banking.

Net income during the three months to October 31 fell slightly to C$3.88 billion ($1 = C$1.3501), down from C$3.89B during the corresponding timeframe last year. However, when excluding one-off expenses, earnings per share came in at C$2.78, above analysts' estimates of C$2.68.

Profit at the capital markets unit slumped by a third annually, in a reflection of the impact a recent spike in inflation and souring trading conditions have taken on corporate deal activity that generated strong fees for banks in 2021.

Provisions for credit losses, which RBC are setting aside to hedge against the impact of possible loan defaults, also jumped to C$381M, up from a C$227M release registered last year.

But personal and commercial banking, which has become a key business for RBC as equity markets have reeled from economic headwinds and the Bank of Canada has hiked interest rates, saw net income rise by 5% to just under C$2.14B.

"While market conditions continue to be tough, our 2022 results reflect a resilient bank that is well-positioned to pursue strategic growth and deliver long-term shareholder value," said RBC president and chief executive officer Dave McKay in a statement.

U.S.-listed shares in RBC, which also agreed to buy the Canadian unit of U.K. lender HSBC earlier this week for C$13.5B, dipped on Wednesday.

Royal Bank of Canada posts dip in Q4 income amid macroeconomic uncertainty
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email