Royal Bank of Canada (RY,RY.TO) Friday reported a 10% increase in its fourth-quarter profit, helped by strong growth in its Canadian Banking, Wealth Management, and Insurance business segments.
The company reported fourth-quarter net income of C$1.24 billion, compared with C$1.12 billion last year. Net income available to common shareholders rose to C$1.17 billion from C$1.09 billion in the previous-year quarter. On a per share basis, net earnings rose to C$0.82 from C$0.81 in the prior-year quarter.
The results included losses related to available-for-sale, or AFS, securities of C$150 million, or C$0.11 per share, general provision for credit losses, or PCL, of C$104 million, or C$0.07 per share, and a provision related to the restructuring of certain Caribbean banking mutual funds of C$39 million, or C$0.03 per share.
Excluding items, the bank reported fourth-quarter net income of over C$1.5 billion, or C$1.03 per share.
The bank also reported a cash net income of C$1.28 billion, up from C$1.16 billion a year ago. Cash net income per share increased to C$0.85 from the prior-year quarter's C$0.84 per share.
The bank's quarterly revenue was C$7.46 billion, up from C$5.07 billion in the same quarter of fiscal 2008.
The results reflected strong performances from Canadian Banking, Capital Markets, Wealth Management, and Insurance, Royal Bank of Canada noted.
For the preceding third quarter, the bank posted net income available to common shareholders of C$1.49 billion or C$1.05 per share on revenues of C$7.82 billion.
The Canadian Banking business generated fourth-quarter revenues of C$2.57 billion, up 5% from C$2.45 billion in the previous year, reflecting volume growth in home equity and personal lending and personal and business deposits. Net income was C$717 million, up 6% from last year, driven by revenue growth across most businesses and the ongoing focus on cost management, partially offset by increased PCL.
Wealth Management revenue rose to C$1.07 billion from C$1.03 billion a year ago. Net income was C$161 million, an increase of 39% from last year, which included provisions related to the Reserve Primary Fund and auction rate securities settlement. Higher transaction volumes reflecting improved market conditions were partially offset by spread compression and lower average fee-based client assets, the bank noted.
The bank also reported Insurance revenues of C$1.57 billion, compared with C$111 million a year ago, mainly due to the change in fair value of investments and an increase in annuity volumes in the bank's U.S. Insurance business. The prior year insurance revenue included an investment loss of C$697 million. Net income for the segment grew 76% to C$104 million from C$59 million last year, largely reflecting investment losses in the prior year quarter and solid business growth.
Further, the company's International Banking revenue reached C$584 million, up from C$472 million in the previous year. Net loss was C$125 million, narrower than a loss of C$206 million last year. For the sector, net loss in the current quarter primarily reflected elevated PCL due to the weak economic environment and a provision related to the restructuring of certain Caribbean banking mutual funds.
Gordon Nixon, RBC President and Chief Executive officer said, "We are working hard to address the challenges in our U.S. banking operations by improving our operating model and building efficiencies to ensure that we are well positioned when the environment improves."
The bank's Capital Markets business reported quarterly revenues of C$1.83 billion, higher than C$1.19 billion in the prior-year quarter. Net income reached C$561 million, a decline from C$584 million in the previous year, which included the favorable impact of the reduction of the Enron-related litigation provision of C$542 million.
For fiscal 2009, the bank posted net income of C$3.86 billion or C$2.57 per share, compared with C$4.46 billion or C$3.38 per share a year ago. Total revenue was C$29.11 billion, up from C$21.58 billion in fiscal 2008.
Royal Bank of Canada also announced a first quarter 2010 dividend of C$0.50 per share, payable on and after February 24, 2010, to common shareholders of record at the close of business on January 26, 2010.
RY closed Thursday's trading at US$54.66, down US$0.44, on a volume of 1.65 million shares. In pre-market trading, the company's shares dropped US$0.45 to US$54.21.
On the TSX, RY.TO dropped C$0.40 and closed Thursday's trading at C$57.48, on a volume of 3.58 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.