Royal Bank of Canada (RBC) posted better-than-expected financial results in the third quarter, lowering its loan-loss provisions and continuing a run of encouraging earnings announcements from Canada’s banking giants for Q3.
The company said on Wednesday morning that its net income had jumped by 21% compared with the same quarter in 2024, rising to $5.4 billion as adjusted earnings per share rose to $3.84. That’s above the $3.29 aggregate expected by analysts.
Provisions stashed away for potentially souring loans also came in lower than anticipated, at $881 million compared with the $1.1 billion projected by analysts. Both Bank of Montreal (BMO) and Scotiabank also earmarked lower-than-expected provisions in their Q3 earnings released yesterday, suggesting that the outlook of Canada’s leading lenders on economic uncertainty and North American trade tensions could be brightening.
On the capital markets side, RBC saw a 13% boost in net income, fuelled largely by strong third-quarter performance in investment banking, while assets under management also swelled.
Net income in personal banking surged by 22% from the same time last year, rising above $1.93 billion, while commercial banking net income was up by 2% to $836 million.
President and chief executive officer Dave McKay highlighted the bank’s performance across each of its business segments, “reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management.”
Toronto-Dominion (TD) Bank and Canadian Imperial Bank of Commerce (CIBC) will become the next major lenders to release their third-quarter financials tomorrow (August 28), with National Bank also releasing its Q3 results today.
CMP
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