Royal Bank of Canada (RBC) has posted a first
quarter record net income of C$1.84bn, an increase of 23% from the
corresponding period last year.

Provisions for credit losses fell by almost
one-third from C$493m last year to C$334m for the three months to
31 January.

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Other group level highlights included a 10.7%
increase in deposits to C$437.1bn; average loans increased by 4.3%
to C$300.8bn while total assets rose by 9.3% to C$721.1bn.

Less positive metrics included a 4 percentage
point increase in the RBC cost-income ratio from 49.4% to
53.4%.

RBC’s net interest margin rose by 3 basis
points from the prior quarter to 2.78%, but was down by 2 basis
points year-on-year, primarily reflecting higher mortgage breakage
costs and lower credit card spreads from promotional pricing and
the impact of new card regulations.

RBC ended the first quarter with a branch
network of 1,210 units in Canada, a net increase of 10 outlets
during the past 12 months.

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In the US, the network contracted by a net
four units to 426 branches.

RBC’s Canadian Banking business unit posted
another strong quarter: net income rose by 13.5% to C$882m.

Provisions for credit losses at the unit fell
by almost one-fifth from C$318m to C$257m.

Distribution highlights flagged-up by RBC CEO
Gordon Nixon included the launch at
the start of 2011 of the bank’s mobile banking application for
smart phones.

Nixon said that 500,000 customers
downloaded the application and signed in over 3 million times,
within two months of the launch of the service.

For 20% of sign-ins, clients used the app to
carry out their daily banking transactions.

RBC’s International Business unit returned to
the black, with a net profit of C$24m, having posted a loss in each
quarter of fiscal 2010, a cumulative loss for the year of
C$317m.