RBC Q3 2019 net income rises by 6% year-on-year on strong retail banking, wealth management and insurance metrics.
On the other hand, the bank’s capital markets unit posts a 6% y-o-y in net income on challenging market conditions.
Moreover, net income at RBC’s Investor & Treasury Services divisions is down by 24% y-o-y. The decline is primarily due to lower client deposit margins and lower revenue from asset services business.
For the three months to end July RBC posts net income of C$3.26bn from C$3.1bn in the year ago quarter.
Consequently, RBC will pay a quarterly dividend of C$1.05 per share, up by 3%.
RBC Q3 2019: retail banking highlights
The bank’s Personal & Commercial unit posts net income of C$1.66bn, up 10% y-o-y. This is mainly due to average volume growth of 7% and higher spreads in Canadian Banking. These factors are partially offset by an increase in staff-related costs as well as technology and related costs.
Meantime, RBC reports further progress in its drive to transition to its digitally enabled relationship bank model.
RBC 90-day active mobile users increase by 17% from a year ago to 4.3 million. This results in a 26% increase in mobile sessions. At the same time, digital adoption increases to 52%.
Other RBC Q3 2019 highlights include a 29% rise in net income to C$204m at the bank’s insurance unit.
RBC Q3 2019 private banking hits
Wealth management net income rises by 11% y-o-y to C$639m. This is primarily due to higher average fee-based client assets driven by favourable market impacts and strong net sales. In addition, the bank’s City National Bank unit reports strong double-digit loan growth of 17% y-o-y.
Less positive group metrics include a rise in provisions for credit losses on impaired loans. This rises to 25 basis points, up 8 basis points from a year ago.
RBC’s share price is down by 1% on release of its Q3 results but up by 6.5% for the year to date.