Royal Bank of Canada (RBC) shares were up more than 6% today after it delivered record earnings in its Canadian banking and capital markets division. RBC’s stock rose to $60.34 in early trading on the Toronto Stock Exchange.
Canada’s biggest bank earned $1.8 billion, which is a 23% increase from $1.5 billion in the same period a year ago. Revenue increased from $7.39 billion from $7.33 billion.
Provisions for credit losses fell to #334 million from $493 million a year earlier, and it was also down more than 20% from the previous quarter.
President and CEO Gordon Nixon explained that the bank delivered record performances in its Canadian banking, capital markets and in wealth management divisions.
Nixon noted that earning grew across all segments, demonstrating the strength and diversification of their business.
Wealth management pulled in $221 million in profits, which is $2 million higher than the same period a year ago. Meanwhile, capital market profits is up 7% to $613 million on higher fees on new issues and loan syndication, despite trading revenue being marginally lower.
What helped improve profits?
Growth in Canada and the expanding presence in the U.S. and select international markets allow RBC to capitalize on the recovery of global equity markets. Being a global leader in wealth and asset management allowed them to leverage their strong position and continue to grow.
Nixon noted that insurance contributed a solid quarter to their diversified earnings stream. Market share is constantly growing as RBC continues to innovate and tailor products to better suit customer needs.
RBC continues to show why people come to them, making them the biggest bank in Canada. They continue to improve and offer more to their clients, only making them a great choice for any Canadian.
RBC recently launched their own Mobile Banking App, for both the iPhone and Blackberry. The iPhone app is something that can be compared to many other mobile banking apps released by various banks, however the Blackberry app is something that cannot. The Blackberry app is unique because it is the first fully integrated mobile banking application available for select Blackberry smartphones. RBC takes what is available to them, and makes it work in the best way possible. A great example is the fact that Blackberry maps is not the greatest application out there, but RBC was able to take it and make it work very well in the mobile banking application.
RBC has also declared its quarterly common share dividend of $0.50 per share, which is payable on and after May 24TH, 2011 to common shareholders of record at the close of business on April 26th, 2011.
image source: oknidius