Royal Bank of Canada and TD Bank Group posted third-quarter profit growth alongside rising wholesale and capital-markets revenue. Royal Bank of Canada reached a record 6.0 billion dollars in net income as fee-based wealth management and corporate banking revenue also rose. TD Bank Group reported its wholesale banking profit nearly double to 743 million dollars, bringing its adjusted net income to 4.671 billion dollars for the quarter.
Royal Bank of Canada reported a record third-quarter net income of 6.0 billion dollars, an 11 per cent increase from a year earlier. Diluted earnings rose 13 per cent to 4.23 dollars a share. The bank reported stronger capital markets revenue across corporate and investment banking, as well as higher fee-based revenue in wealth management. Return on equity stood at 17.9 per cent.[1]
TD Bank Group also saw strong growth in its institutional business, with wholesale banking net income jumping to 743 million dollars. That figure represents an 87 per cent increase on a reported basis, arriving alongside a 25 per cent rise in revenue. The division's return on equity reached 16.7 per cent. Overall, the bank reported an adjusted net income of 4.671 billion dollars on revenue of 16.885 billion dollars for the quarter.[2]
Alongside the profit growth, both banks increased their provisions for credit losses. Royal Bank of Canada's provisions rose to 1.0 billion dollars from 881 million dollars a year earlier, lifting the provision ratio on loans to 36 basis points. At TD Bank Group, provisions for credit losses stood at 917 million dollars. Both institutions maintained strong capital positions, with Royal Bank of Canada's common equity ratio at 13.5 per cent and TD Bank Group's at 14.3 per cent.[1], [2]
