RBC Q119 results disclose a 5% increase in net income to C$3.17bn for the quarter ended 31 January.
The bank’s domestic retail focused unit, Personal & Commercial reports a 3% year-on-year increase in net income. This results mainly due to solid client-driven volume growth and higher deposit spreads from higher Canadian interest rates.
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RBC Q119 results highlight ongoing digital success. For example, 90-day active mobile users increased 17% from a year ago to 4.0 million. And there is a 22% increase in mobile sessions.
Digital adoption increases to 51% of customers confirming that RBC’s digital transformation drive is on target.
In total, RBC now has 6.8 million digitally active customers, up by 7% from a year ago.
RBC ends the first quarter with 1,205 branches, a net reduction of 25 on the year.
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By GlobalDataDave McKay, RBC President and CEO says: “Our strategy and unwavering focus on delivering value for our clients and shareholders continues to underpin our ability to
consistently deliver solid results, even against a challenging market backdrop.
“In addition to delivering earnings of C$3.2bn, we are pleased to increase our quarterly dividend by 4% today. We remain focused on prudently managing risk and balancing our investments for long-term growth as we transform the client journey.”
RBC Q119 results: less positive metrics
Total provisions for credit losses on loans of $516 million increases by C$183m or 55% from the prior quarter. This relates to higher provisions in Capital Markets
and Personal & Commercial Banking.
On the other hand, the bank reports an improvement in P&CB margins.
The Q119 net interest margin of 2.79% is up 11 basis points y-o-y and 2 basis points on last quarter.
And while expenses rise by 5% y-o-y, this reflects continued investment to support growth including talent, digital initiatives and technology.
Wealth management net income is flat year on year but Capital Markets is down by 13%.
RBC’s efficiency ratio inches up by 10 basis points from a year ago to 41.6%.
