IBOS member RBC reports its Q1 2018 financial earnings

IBOS member Royal Bank of Canada (RBC) has announced its Q1 2018 financial results, reporting a net income of $3,012 million ending 31 January 2018.

RBC’s results in Q1 2018 were driven by strong earnings in Personal & Commercial Banking, Capital Markets, Wealth Management, and Investor & Treasury Services. This quarter’s strong performance also reflects stable credit quality, with a provision for credit losses (PCL) on impaired loans ration of 23 basis points (bps) compared to Q1 2017, and a total PCL ratio of 24 bps in Q1 2018.

In comparison to Q4 2017, net income increased by $175 million (6%). This mainly reflects higher earnings in Capital Markets, Personal & Commercial Banking, Wealth Management and Investor & Treasury Services, partially offset by lower earnings in Insurance and the write-down associated with the US Tax Reform.

Dave McKay, RBC President and CEO, commented:

“Strong client activity and volume growth across most businesses drove our first quarter earnings of $3 billion while we absorbed the write-down related to the U.S. Tax Reform. We invested in our businesses to support clients, and repurchased over $920 million of common shares. In addition, I am pleased to announce a 3% increase to our quarterly dividend.

“Our strategy for sustainable growth is built on prudently managing risks and effectively deploying capital for strong returns through the cycle. We will continue to invest smartly and work hard to earn the trust of our clients, employees and communities.”

Below are the financial highlights in Q1 2018 compared to Q4 2017:

  • Net income of $3,012 million, which was increased by 6%
  • Diluted EPS of $2.01, which increased by 7%
  • Return on Equity (ROE) of 17.4%, which increased by 80 bps
  • Common Equity Tier 1 (CET1) ratio of 11.0%, which increased by 10 bps

Access the full Q1 2018 report via RBC here