- Adjusted Earnings Per Share (EPS): RBC reported C$3.85, exceeding the estimate of C$3.54.
- Reported EPS: The bank posted EPS of C$3.76.
- Provision for Credit Losses: Stood at C$1.01 billion, slightly above the estimate of C$987.8 million.
- Capital Adequacy: Basel III common equity Tier 1 ratio was 13.5%, surpassing the forecast of 13.4%.
- Adjusted Return on Equity (ROE): Achieved 17.2%, outdoing estimates of 15.9%.
- Return on Equity (ROE): Reported ROE was 16.8%.
- Net Income: Total was C$5.43 billion.
- Personal Banking Income: C$1.89 billion in net income.
- Commercial Banking Income: Recorded a net income of C$810 million.
- Wealth Management Income: Contributed C$1.28 billion in net income.
- Insurance Segment: Net income was C$98 million.
- Capital Markets Income: Generated a net income of C$1.43 billion.
- Total Revenue: Stood at C$17.21 billion, exceeding the estimate of C$16.72 billion.
- Net Interest Margin: Achieved 1.62%, slightly above the estimate of 1.61%.
- Non-Interest Expenses: Totalled C$9.37 billion, marginally over the estimate of C$9.36 billion.
- Analyst Recommendations: 14 buys, 3 holds, and 2 sells.
Royal Bank Of Canada on Smartkarma
Analysts on Smartkarma are positive about Royal Bank of Canada (RBC), highlighting its dominant market leadership and diversified operations. RBC is the largest bank in Canada by market capitalization, excelling in personal and commercial banking, wealth management, and capital markets. Its resilient business model and strategic acquisitions like HSBC Bank Canada enhance its global presence.
The analysts also note that RBC is focused on growth through digitalization and technology investments to drive efficiency and customer engagement. Despite facing macroeconomic challenges such as a slowing Canadian economy and intense mortgage market competition, RBC’s profitability remains strong. The bank’s ability to manage credit risks and integrate recent acquisitions will be crucial for its future performance.
A look at Royal Bank Of Canada Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Royal Bank of Canada appears to have a positive long-term outlook. The company received a solid score across key factors including Value, Dividend, Growth, Resilience, and particularly Momentum. The higher scores indicate that Royal Bank of Canada is well-positioned in terms of these factors, with a promising future ahead.
Royal Bank of Canada is a diversified financial services company that offers a range of services to various clients globally. With its balanced scores in important categories, the company seems to have strong foundations for future growth and stability in the financial market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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