RBC Blows Past Earnings Estimates on Strong Capital-Markets Performance

Royal Bank of Canada (RBC) has reported strong quarterly earnings, beating estimates from its capital-markets and wealth-management divisions. In its fiscal third quarter, RBC earned $4.28 a share on an adjusted basis, surpassing the average analyst estimate of $4.07. The bank's capital-markets business saw net income total $1.54 billion, outperforming the forecasted $1.45 billion.

The success can be attributed to increased activity in equity and debt origination, as well as mergers across various regions. RBC's capital-markets franchise has experienced notable growth, with about 70% of its revenue generated outside Canada, including roughly half from the U.S. The bank is expanding its global presence by launching a new business line that combines its Canadian and U.S. cash-management platforms.

RBC CEO Dave McKay stated in a statement, 'Our third-quarter earnings showcase the strength of our diversified business.'