Canadian Banks: Royal Bank Misses, National Bank Beats Estimates For Fiscal Q3 2022

Royal Bank of Canada (TSX: RY) missed earnings estimates while National Bank of Canada (TSX: NA) exceeded analysts’ expectations as two of the Big Six reported their financial results for their respective fiscal third quarters.

Both banks saw declines in their net income: Royal Bank posted a 17% decline year-on-year, ending with $3.58 billion in net income; National Bank posted a 1.5% decline year-on-year as it finishes the quarter with $826 million in net income.

Royal Bank ended with $2.55 earnings per share, missing the estimate of $2.66. On the other hand, National Bank saw $2.35 in earnings per share, exceeding the expected $2.34. The former attributes the annual income decline to a 58% drop in its capital markets earnings while the latter highlights the year-on-year increase is a result of the boost in its trading business.

The two banks also both took provisions for credit losses: Royal Bank is taking $340 million in PCLs to guard against potential loan impairments, coming from a recovery of $540 million last year. National Bank, however, took PCLs of $57 million, compared with a release of $43 million.

Royal Bank of Canada last traded at $126.49 while National Bank of Canada last traded at $92.33.


Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

HSBC Completes $10B Sale of Canadian Unit to Royal Bank of Canada

HSBC Holdings (LON: HSBA) announced quietly late last week that it has completed the C$13.5...

Monday, April 1, 2024, 05:02:00 PM

Royal Bank Of Canada Sees Strong Q4 2022 Earnings

A day after negotiating the company’s largest purchase ever to bolster the business, Royal Bank...

Wednesday, November 30, 2022, 03:06:00 PM

Royal Bank of Canada Q4 2023 Exceeds Expectations Despite Credit Loss Provision Bump

Royal Bank of Canada (TSX: RY) announced a stronger-than-expected quarterly profit on Thursday, propelled by...

Thursday, November 30, 2023, 10:19:00 AM

It’s A Coronavirus Economy, We’re All Just Planning In It

It’s been a few hours now since Canada’s Federal government announced a plan for $82...

Thursday, March 19, 2020, 09:00:29 AM

Legal Battle Intensifies as Ex-RBC CFO Defends Against Misconduct Claims

Nadine Ahn, the former chief financial officer of the Royal Bank of Canada (TSX: RY),...

Friday, September 6, 2024, 03:54:00 PM