RBC Surpasses Earnings Expectations with Strong Third-Quarter Results

Royal Bank of Canada (RBC) posted impressive third-quarter earnings, exceeding analyst expectations. The bank's net income for the three months ending July 31 was $6 billion, up $610 million or 11% compared to the same quarter last year.

The increase in net income resulted in a net earnings per share of $4.23. Adjusted net income, which removes non-recurring items, was $6.1 billion, a 10% rise from last year. This translated to adjusted earnings per share of $4.28, beating analysts' expectations of about $4.07.

RBC's chief executive Dave McKay attributed the strong results to 'very strong client activity'. He noted that the bank is winning market share across various segments, including corporate banking, investment banking activities, commercial banking, and consumer banking.

The lender also announced a dividend of $1.76 per share, payable on November 24. RBC expects its common equity tier 1 (CET1) ratio to come down to the mid-point of the 12.5% and 13.5% range from 13.5%. This change is due to the bank's goal of driving organic growth, increasing dividends, and buying back shares.