Royal Bank of Canada Q3 net income up 4%Staff writer ▼ | August 26, 2015
Royal Bank of Canada reported net income of $2,475 million for the third quarter ended July 31, 2015, up $97 million or 4% from the prior year.
Royal Bank of Canada Q3 net income was $2,475 million
These factors were partially offset by lower earnings in Capital Markets compared to record results last year, and lower earnings in Insurance which included the impact of a change in Canadian tax legislation. Results also reflect the positive impact of foreign exchange translation.
Compared to the prior quarter, net income decreased $27 million. Excluding a specified item in the prior quarter, net income was up $81 million or 3%, mainly reflecting record earnings in Personal & Commercial Banking and higher earnings in Insurance, partially offset by lower earnings in Capital Markets reflecting less favourable market conditions.
Credit quality remained strong with a provision for credit loss (PCL) ratio of 0.23%. As of July 31, 2015, Basel III Common Equity Tier 1 (CET1) ratio was 10.1% as the company continued to strengthen its capital position in advance of closing the announced acquisition of City National, which is expected in the fourth calendar quarter of 2015.
The company increase quarterly dividend of $0.02 or 3%, to $0.79 per share. ■