RBC reports $3.87B Q3 profit, up from $3.58B a year ago, looks to trim jobs

By The Canadian Press on August 24, 2023.

TORONTO – Royal Bank of Canada reported its third-quarter profit rose compared with a year ago and said it remained focused on reducing costs and expected to continue to trim jobs.

The bank says its number of full-time equivalent employees was down one per cent from last quarter and that it expects to further reduce it by about one to two per cent next quarter. RBC had 93,753 full-time equivalent employees in its most recent quarter.

The bank reported its net income amounted to $3.87 billion or $2.73 per diluted share for the quarter ended July 31, up from $3.58 billion or $2.51 per diluted share in the same quarter last year. Revenue totalled $14.49 billion, up from $12.13 billion a year earlier.

Provisions for credit losses amounted to $616 million, up from $340 million in the same quarter last year.

On an adjusted basis, RBC says it earned $2.84 per diluted share in its latest quarter, up from $2.55 a year earlier.

The average analyst estimate had been for a profit of $2.71 per share, according to figures compiled by financial markets data firm Refinitiv.

“We remain focused on executing on our cost reduction strategy while leveraging our strong balance sheet and diversified business model to support our growth and bring long-term value to our clients, communities and shareholders,” RBC chief executive Dave McKay said in a statement.

The bank said its personal and commercial banking business earned $2.13 billion in the quarter, up from $2.02 billion in the same quarter last year, helped by higher interest rates.

RBC’s insurance business also helped lift its results as it earned $227 million in its latest quarter, up from $186 million a year earlier.

Meanwhile, the bank’s wealth management business earned $674 million, down from $821 million in the same quarter last year.

RBC’s capital markets business earned $938 million in its third quarter, up from $599 million a year earlier.