Shares of Royal Bank of Canada (NYSE:RY) were little changed Thursday after Canada’s biggest lender by market value posted fiscal second quarter earnings that handily beat analyst expectations.
RBC was down 0.59% to US$78.86 in pre-market trade in the New York Stock Exchange.
For the quarter ended March 31, the bank booked earnings of C$2.06 helped by strong growth at its wealth management and retail businesses. Excluding one-off items, earnings per share rose to C$2.10. The consensus earnings estimate was C$2.05.
Net income increased by 9% compared with the previous year to C$3.1bn. That included net income of C$1.46bn at its personal & commercial banking business, up 7% reflecting improved margins and sales.
The bank’s wealth management business lifted net income by 25% to C$537mln. Reuters attributed the high-octane growth to benefits from tax reform in the United States.
However, the performance of RBC’s investment banking division was more muted, with net income totaling C$665mln, roughly unchanged on a year ago amid less favorable market conditions.