viewRoyal Bank of Canada

RBC’s fiscal 2Q earnings beat Street helped by growth in wealth management and retail businesses

The performance of the Canadian bank’s investment banking division was more muted

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RBC’s wealth management business lifted net income by 25%

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.

Quick facts: Royal Bank of Canada

Price: 94.59 CAD

Market: TSX
Market Cap: $134.61 billion

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