RBC reports Q2 performance
CBJ - June 1 - Royal Bank of Canada has reported net income from continuing operations of $1.563 billion for the quarter ended April 30, 2012.
Net income from continuing operations was $1.765 billion, up $83 million, or five per cent, from last year, excluding the previously announced loss of $202 million after-tax related to RBC’s agreement to acquire the other 50 per cent in its joint venture, RBC Dexia Investor Services Limited.
RBC’s solid performance was driven by strong volume growth in Canadian Banking, improved results in Capital Markets and solid growth in Insurance and Wealth Management.
“Our solid second quarter results reflect continued business growth and an investment in a strategic acquisition with attractive growth prospects," said Gordon M. Nixon, RBC President and CEO. "We continue to take advantage of our strength, scale and strong capital position to drive cost efficiencies and invest in our businesses to deliver long-term growth."
Canadian Banking net income was $937 million, up $42 million compared to last year. Excluding the prior year gain on the sale of Visa shares of $29 million ($21 million after-tax), earnings were up $63 million, or seven per cent, reflecting continued strong volume growth of nine per cent mainly driven by business and personal deposits, residential mortgages and business loans. Compared to last quarter, net income was down $57 million, or six per cent, largely reflecting fewer days in the quarter and higher provisions for credit losses in RBC’s commercial lending portfolio.
Capital Markets net income was $449 million, up $43 million, or 11 per cent from a year ago, due to higher trading and corporate and investment banking results driven by increased client activity and favourable market conditions in the early part of the quarter. These factors were partially offset by provisions for credit losses this quarter as compared to a recovery last year.