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Royal Bank of Canada reports record results

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Staff writer ▼ | December 5, 2013
Royal Bank of Canada reported record net income of $8.4 billion for the year ended October 31, 2013, up $890 million or 12% from the prior year.
Royal Bank of Canada
Royal Bank of CanadaRoyal Bank of Canada reported record net income of $8.4 billion for the year ended October 31, 2013, up $890 million or 12% from the prior year.


During 2013 Royal Bank of Canada saw earnings of $8,429 million were up $890 million, or 12% from the prior year. This reflects record earnings in Personal & Commercial. Banking was up 9%, driven by solid volume growth in Canadian Banking along with improved credit quality; record earnings in Wealth Management were up 18%, due to higher average fee-based client assets and higher transaction volumes; and record earnings in Capital Markets were up 8%, reflecting strong growth in our corporate and investment banking businesses, partially offset by lower trading revenue.

Insurance earnings were down 16% largely reflecting a charge of $160 million ($118 million after-tax) as a result of proposed legislation in Canada, which would affect the policyholders' tax treatment of certain individual life insurance policies.

In Q4 2013 earnings of $2,119 million were up $208 million or 11% from the prior year, driven by strong growth in the corporate and investment banking businesses, higher earnings in Canadian Banking reflecting solid volume growth of 7%, higher average fee-based client assets in Wealth Management and improved business performance in Investor Services.

A lower effective tax rate, largely reflecting a $124 million income tax adjustment related to prior years, and lower provisions for credit losses (PCL) also contributed to the increase. These factors were partially offset by a charge of $118 million after-tax in Insurance related to the proposed legislation in Canada. Earnings were down $185 million or 8% from the prior quarter.


 

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