RBC and National Bank Top Estimates
Royal Bank of Canada reported an earnings increase of 17% in the latest quarter thanks to strength in domestic lending and investment banking. National Bank of Canada also posted profit that topped estimates. Royal Bank is the country’s second-largest in terms of assets.
Royal Bank’s net income for the fiscal first quarter ended Jan. 31 rose to $2.46 billion, or $1.65 a share, from $2.09 billion, or $1.38, a year earlier. Adjusted profit, which excludes some items, was $1.67 a share.
The company raised its dividend 2.7% to 77 cents a share. Royal Bank posted record profit in personal and commercial banking, and had higher earnings from its investment banking and insurance businesses. Restructuring costs hampered earnings in wealth management, a business Royal Bank is expanding with a $5.4 billion agreement last month to buy Los Angeles-based City National Corp.
National Bank, the country’s sixth-largest lender posted a 2.5% increase in profit, thanks largely to stronger earnings in its financial-markets unit. Net income for the Montreal-based lender was $415 million, or $1.16 a share, up from $405 million, or $1.15, a year earlier. Adjusted earnings were $1.14 a share.