RBC reports Q1 profit down from year ago, provisions for credit losses up

TORONTO –

Royal Bank of Canada reported a first-quarter revenue of $3.21 billion, down from $4.10 billion a yr earlier as its provisions for credit score losses elevated.

The financial institution says the revenue amounted to $2.29 per diluted share for the quarter ended Jan. 31, down from $2.84 per diluted share in the identical quarter final yr.

Revenue totalled $15.09 billion, up from $13.07 billion a yr earlier.

The financial institution’s provision for credit score losses amounted to $532 million in contrast with a provision of $105 million in the identical quarter final yr.

On an adjusted foundation, RBC says it earned $3.10 per diluted share in its newest quarter, up from an adjusted revenue of $2.87 per diluted share a yr earlier.

Analysts on common had anticipated a revenue of $2.94 per diluted share within the quarter, in response to estimates compiled by monetary markets knowledge agency Refinitiv.

“As our first-quarter results demonstrate, we are prudently managing risk while delivering strong revenue growth driven by our diversified business model,” RBC chief govt Dave McKay mentioned in an announcement.

RBC mentioned its private and business banking operations earned $2.13 billion, up from $1.97 billion in the identical quarter a yr earlier as increased internet curiosity revenue was partly offset by increased provisions for credit score losses and staff-related prices, decrease common mutual fund balances, in addition to a better efficient tax fee.

The financial institution’s wealth administration business earned $848 million, up from $821 million a yr earlier, whereas RBC’s insurance coverage arm earned $148 million, down from $197 million in the identical quarter final yr.

RBC’s capital markets division earned $1.22 billion, up from $1.12 billion in its first quarter of 2022.

This report by The Canadian Press was first revealed March 1, 2023.