Royal Bank of Canada (NYSE: RY) reported fiscal second-quarter earnings of CAD 5.5 billion on August 30, 2023, with adjusted earnings reaching CAD 5.6 billion. The results were driven by strong performances in capital markets, wealth management, and Canadian banking, marking RBC’s second highest quarterly performance on record. The bank’s return on equity was reported at 17.2%, and its Common Equity Tier 1 ratio was 13.5%.
Key highlights include a record net income of CAD 1.5 billion from Capital Markets, which increased 23% year-over-year, and a 28% rise in Wealth Management net income to CAD 1.2 billion. Canadian Personal Banking earnings rose to CAD 1.9 billion, reflecting an 18% year-over-year increase. However, the bank also noted a cautious credit outlook, with CAD 899 million in provisions for credit losses on impaired loans.
Additionally, RBC increased its quarterly dividend by CAD 0.12, a 14% year-over-year boost, and repurchased 7.4 million shares for approximately CAD 1.7 billion during the quarter. As of this reporting, the bank maintains a positive outlook despite ongoing uncertainties in the economic landscape.
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