RBC FY2019 net income rises by 4% year-over-year to a record C$12.9bn.
The results cover the 12 month period to end October.
In particular, the RBC FY2019 earnings reflect the bank’s strength in its Personal & Commercial Banking and Wealth Management units.
Revenue across the group rises by 8% y-o-y to a record C$46bn.
On the other hand, fourth quarter earnings miss analyst forecasts. For the three months to 31 October net income is down by 1% to CS3.21bn.
The bank’s fourth quarter results are impacted by weaker earnings at its insurance and capital markets divisions.
RBC FY2019 highlights
The bank posts 6% earnings growth at its Personal & Commercial Banking unit for the full fiscal. This is mainly due to average volume growth of 7%. Average loan growth in Canadian Banking is up 6%. Meantime, residential mortgages and business loans are up by 11% y-o-y. Average deposits rise by 9% in both business and personal deposits.
At the same time, the bank posts 13% earnings growth at its Wealth Management unit. This is mainly due to higher average fee-based client assets
Channel highlights include a 16% rise in mobile users to 4.5 million. RBC now has 7.2 million active digital users up from 6.7 million a year ago. Moreover, RBC’s digital adoption rate is up 230 basis points y-o-y to 52.3%. In addition, clients’ mobile sessions are up by 20% y-o-y.
RBC’s branch network of 1,201 is down by a net two units in the past year.
RBC FY2019 less positive metrics
Provisions for credit losses ratio on loans rise by 8 basis points to 31 basis points. Moreover, PCL on impaired loans ratio increase by 4 bps at the bank’s personal and commercial banking unit. Other less positive metrics include earnings down by 36% in Investor & Treasury Services. This is primarily due to lower funding and liquidity revenue driven by the short term interest rate environment.
Earnings are also down by 4% at RBC’s Capital Markets division.