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Royal Bank of Canada (NYSE:RY) stock gained 1.3% in Thursday premarket trading after the bank known as RBC turned in better-than-expected fiscal Q3 earnings as lower taxes and a favorable shift in its business mix offset a higher provision for credit losses.
Compared with fiscal Q2, the growth in net income reflected stronger results in its Personal & Commercial Banking and Insurance businesses, while Capital Markets results stayed basically flat. That was partly offset by weaker results in Wealth Management.
Its fiscal Q3 adjusted EPS of C$2.84 (US$2.10), vs. the C$2.71 Visible Alpha consensus, rose from C$2.65 in Q2 and C$2.55 in Q3 2022.
Net interest income for the quarter ended July 31, 2023 increased to C$6.29B (US$4.65B) from C$6.10B in the prior quarter and C$5.27B in the year-ago period. Net interest margin of 1.50% vs. 1.53% in Q2 and 1.45% in Q3 2022.
RBC’s (RY) provision for credit losses rose to C$616M from C$600M in Q2 and from C$340M in Q3 2022.
Preprovision pretax earnings of C$5.25B vs. C$5.02B in the prior quarter and C$4.90B a year ago.
Q3 income taxes dropped to C$874M from C$984M in Q2 and $1.20B in Q3 2022.
Canadian Banking preprovision pretax earnings of C$3.15B climbed from C$2.95B in Q2 and C$3.00B in Q3 2022.
Wealth Management preprovision pretax earnings fell to C$920M from C$977M in the prior quarter and C$1.09B in the year-ago period.
Insurance preprovision pretax earnings of C$304M jumped from C$182M in Q2 and C$244M in Q3 2022.
Capital Markets preprovision pretax earnings of C$1.04B vs. C$1.12B in the previous quarter and C$678M a year earlier.
Earlier, Royal Bank of Canada (RY) non-GAAP EPS of C$2.84, revenue of C$14.49B.
