RBC Q2 2019 results once again highlight the strength of the bank’s Canadian Personal and Commercial unit.
For the quarter ending 30 April RBC reports net income of C$3.23bn, up 6% from the year ago period.
Moreover, the results are ahead of analyst forecasts.
The retail banking focused Canadian Personal and Commercial unit accounts for net income of C$1.55bn, also up 6% y-o-y.
Notably, the unit posts average volume growth of 7% including strong deposit growth of 9%.
Meantime, lending increases by 5% y-o-y.
For the year to date, RBC reports net income of C$6.4bn up 5% on H1 2018.
RBC Q2 2019 highlights
RBC’s 90 day active mobile users are up by 17% from a year ago to 4.1 million.
At the same time, the digital drive results in a 25% increase in mobile sessions.
And the majority of the bank’s customers are now digitally active with the digital adoption rate up to 52%. This represents an increase of 300 basis points from a year ago.
Improved margins results in a 6 basis points increase y-o-y in the net interest margin to 2.8%.
Another notable highlight is a reduction to 42.0% from 42.6% in the cost-income ratio.
Product highlights include the launch of NOMI Budgets. The solution, available through the RBC mobile app uses artificial intelligence. NOMI Budgets analyses customers’ spending history and recommends an appropriate budget. In addition, it sends updates and helps customers keep on tracks in a seamless and convenient way.
Other highlights include a 17% rise to C$111m in net income at RBC’s Capital Markets unit. This is primarily due to higher revenue in global markets across fixed income, equity trading and debt origination.
RBC Q2 2019 wealth management profit rises 9%
Wealth management net income increases by 9% y-o-y to C$585m. This is primarily attributable to higher net income, mainly from strong loan growth and higher spreads at City National Bank.
On the other hand, insurance net income falls by 10% to C$154m.
RBC President and CEO Dave McKay says: “Our consistent earnings growth is a testament to the strength of our diversified business model and our strategy to transform the bank to create more value for clients.
“We continue to make strategic investments to drive long-term growth for shareholders This is guided by our clear purpose of helping clients thrive and communities prosper.”
At the 34th annual RBI global awards on 24 April, RBC was the only bank to win two awards. RBC collected the awards for Best Retail North America and Best Loyalty/Rewards Strategy.
For the year to date, RBC’s share price is up by almost 10%.