Royal Bank of Canada posted a record adjusted net income of $6.1 billion for its fiscal third quarter, a 10% increase from the same period last year, the bank reported on Thursday. Adjusted diluted earnings per share rose 11% year-over-year to $4.28, while adjusted return on equity climbed 40 basis points to 18.1%. Pre-provision, pre-tax earnings reached a record $8.7 billion, up 13% from the prior year.
The Toronto-based bank, Canada’s largest lender, saw strong performance across most segments. Wealth Management net income surged 32% year-over-year to $1.44 billion, driven by higher fee-based client assets and net sales. Capital Markets net income rose 16% to $1.54 billion, supported by increased equity and debt origination, M&A activity, and equity trading revenue. Commercial Banking net income grew 12% to $936 million, reflecting deposit and loan volume growth alongside lower provisions.
Personal Banking net income declined 1% to $1.92 billion as higher non-interest expenses offset volume growth, while Insurance net income fell 20% to $197 million due to weaker claims experience and the absence of prior-period adjustments. Total provisions for credit losses increased 14% year-over-year to $1.0 billion, with the PCL on loans ratio rising to 36 basis points.
RBC maintained robust capital and liquidity positions. Its common equity tier 1 ratio remained steady at 13.5%, above regulatory requirements, while the liquidity coverage ratio dipped slightly to 125%, indicating a $98 billion surplus. The net stable funding ratio improved to 112%. The bank returned $4.0 billion to shareholders through $1.6 billion in share buybacks and $2.4 billion in common share dividends.
Following the earnings release, RBC shares climbed over 1% in U.S. premarket trading on Thursday.
