The bank released its latest earnings as the pandemic continues to loom large
Royal Bank of Canada (RBC) has reported net income of $4.3 billion in its financial results for the third quarter of 2021, a 34% increase ($1.1 billion) from the same time last year.
It recorded increases in earnings in personal and commercial banking, capital markets and wealth management over last year, while also reporting higher results in insurance and investor and treasury services.
The company said that improvements in its credit quality and macroeconomic outlook were responsible for its releases of provisions on performing loans of $638 million, compared with provisions of $280 million taken in the previous year due to the impact of COVID-19.
RBC took in $5 billion in pre-provision, pre-tax earnings, an increase of 6% from the same time last year – a development that the bank said reflected strong client-driven growth in volumes and fee-based assets, constructive markets, controlled discretionary expenses and record investment banking revenue.
Read more: RBC announces Q2 2021 results
President and chief executive officer Dave McKay said that the results reflected the bank’s “disciplined” approach, with its priority continuing to be service and support to its clients as Canada’s pandemic recovery takes shape.
“RBC continued to deliver on our commitment of providing long-term, sustainable value to our clients, communities and shareholders,” he said.
“Our diversified businesses and disciplined approach to risk and cost management underpinned our results, supported by the significant investments we’ve made in technology and talent to fuel our momentum and deliver differentiated value to those we served.”
McKay said that the bank remained “cautiously optimistic” about the macroeconomic outlook and “focused on supporting clients and communities through the ongoing recovery.”
The results continued the bank’s strong performance throughout 2021, with net income in its personal and commercial banking sector increasing by 11% - or $205 million – compared with the previous quarter and capital markets net income up $58 million (5%) over its Q2 results.
