Royal Bank of Canada (RBC) reported a significant increase in its third-quarter profit, reaching $4.49 billion, compared to $3.86 billion during the same period last year. This translates to a net income of $3.09 per diluted share for the quarter ending July 31, up from $2.73 per diluted share a year earlier. 

The bank’s total revenue for the quarter amounted to $14.63 billion, a rise from $12.98 billion in the previous year. RBC also reported a provision for credit losses of $659 million, slightly higher than the $616 million recorded in the same quarter last year. 

A notable contributor to RBC’s improved performance was the acquisition of HSBC Bank Canada, which added $239 million to the bank’s net income for the quarter. On an adjusted basis, RBC earned $3.26 per diluted share, surpassing analysts’ expectations of $2.97 per share, according to LSEG Data & Analytics. 

RBC’s personal and commercial banking operations saw a robust performance, with earnings of $2.49 billion, up from $2.13 billion in the same quarter last year. The bank’s wealth management division also experienced growth, generating $862 million in earnings, compared to $663 million a year earlier. However, RBC’s insurance segment reported a decline, with earnings falling to $170 million from $215 million in the previous year. 

RBC’s capital markets business posted earnings of $1.17 billion, an increase from $949 million a year ago. Conversely, the bank’s corporate support group reported a loss of $208 million, widening from a loss of $101 million in the same quarter last year. 

RBC’s CEO, Dave McKay, emphasized the bank’s strategic and financial strength, highlighting solid revenue growth, a robust balance sheet, and prudent risk management as key drivers behind the strong quarterly performance.