TORONTO — Royal Bank of Canada (RBC) posted a stronger-than-expected third-quarter profit of $5.4 billion, up from $4.5 billion a year earlier, as revenue rose across all its business lines despite higher provisions for potential loan losses.
The profit amounted to $3.75 per diluted share for the quarter ending July 31, compared with $3.09 last year. On an adjusted basis, RBC earned $3.84 per diluted share, handily beating analyst expectations of $3.32, according to LSEG Data & Analytics.
Revenue jumped to $16.99 billion from $14.63 billion a year earlier.
The bank set aside $881 million for credit losses, higher than the $659 million provision in the same quarter of 2024.
Segment performance
- Personal banking: Net income climbed 22% to $1.9 billion, driven by volume growth and improved margins.
- Commercial banking: Rose 2% to $836 million.
- Wealth management: Increased 15% to $1.1 billion.
- Capital markets: Gained 13% to $1.3 billion.
- Insurance: Jumped 45% to $247 million.
CEO statement
“We saw strong growth across each of our 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,” said RBC president and CEO Dave McKay in a statement.