Royal Bank of Canada reported net income of $3,060 million for the second quarter ended April 30, 2018, up $251 million or 9% from the prior year with double-digit diluted EPS growth of 11%. Results reflect strong earnings growth in Wealth Management, Personal & Commercial Banking, and Investor & Treasury Services, and solid earnings in Insurance. Capital Markets performance was stable amidst less favourable market conditions. Strong credit quality also contributed to results, with provision for credit losses (PCL) on impaired loans ratio of 22 basis points (bps) reflecting a benign credit environment.
Compared to last quarter, net income was up $48 million or 2%, though market-related revenue moderated from strong first quarter levels. Continued margin expansion and strong loan growth on both sides of the border helped to offset the impact of a less favourable market environment and fewer days in the current quarter. The prior quarter also included the write-down of net deferred tax assets related to the U.S. Tax Reform.
“We maintained good momentum in the second quarter, delivering earnings of $3.1 billion. Our businesses executed on client-focused growth strategies while continuing to demonstrate strong risk management. As we transform the bank to create more value for our clients, we’re proud to once again be ranked highest in overall customer satisfaction by J.D. Power.”
– Dave McKay, RBC President and Chief Executive Officer
Re-disseminated by The Asian Banker