| Royal Bank of Canada’s (NYSE:RY) fiscal Q1 earnings beat the average analyst estimate, increasing from the prior and year-ago quarters, driven by strong results in its Personal & Commercial Banking and Wealth Management units and a rebound in Capital Markets. That was partly offset by lower results in its insurance business. In addition, the bank known as RBC (RY) set more reserves aside for potential loan defaults as it took a dimmer view of the macroeconomic outlook and credit quality. Q1 adjusted EPS of C$3.05 (US$2.25), topping the C$2.94 consensus estimate, rose from C$2.78 in the prior quarter and from C$2.87 in the year-ago period. Net interest income for the quarter ended Jan. 31, 2023 slipped to C$6.20B (US$4.57B) from C$6.28B in Q4 2022 and increased from C$5.27B in Q1 2022. Net interest margin of 1.47% narrowed from 1.56% in the prior quarter and widened from 1.39% in the year-ago quarter. RBC (RY) provision for credit losses of C$532M rose from C$381M in Q4 and from C$105M in Q1 2022. Preprovision pretax earnings of C$5.9B increased 12% from the prior quarter and rose 7% from the year-ago period. Personal & Commercial Banking preprovision pretax earnings were C$3.23B, up 4% Q/Q and 18% Y/Y; net income of C$2.06B increased 3% Q/Q and 7% Y/Y. Wealth Management preprovision pretax earnings of C$1.15B increased 1% Q/Q and 7% Y/Y, while net income of C$848M rose 1% Q/Q and 3% Y/Y. Insurance preprovision pretax earnings of C$190M tumbled 49% Q/Q and 25% Y/Y; net income of C$148M dropped 45% Q/Q and 25% Y/Y. Capital Markets preprovision pretax earnings of C$1.42B surged 76% Q/Q and fell 3% Y/Y; net income of C$1.22B jumped 72% Q/Q and 9% Y/Y. Conference call at 8:00 AM ET. Earlier, Royal Bank of Canada (RY) non-GAAP EPS of C$3.05 beats by C$0.12, revenue of C$15.09B beats by C$1.56B. |
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