Thursday, August 28, 2025

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 robust performance in its corporate and investment banking division. This positive outcome counteracted the impact of increased provisions for bad loans.

The capital markets unit of the largest Canadian bank experienced a significant boost, with net income from the business soaring by 36% to $987 million. The success was attributed to the resilience of corporate and investment banking, as highlighted by the bank.

Despite these gains, RBC adopted a more cautious stance by increasing provisions for credit losses (PCLs), reaching $720 million compared to $381 million the previous year. This move was influenced by a growing concern stemming from a dimming economic outlook, particularly in light of the central bank’s assertive rate hikes amidst a teetering Canadian economy.

RBC also took measures to fortify liquidity at its U.S. unit, City National Bank. According to a report filed with regulators last month, RBC infused approximately $2.95 billion into the bank throughout the year.

The bank’s adjusted earnings of $2.78 per share surpassed expectations of $2.62, according to LSEG data. Net income for the quarter ended October 31 rose to $4.13 billion or $2.90 per share, compared to $3.88 billion or $2.74 per share in the same period the previous year.

For RBC’s fiscal fourth quarter, the bank reported a profit of $3.04 billion, translating to $2.14 per share. Adjusted earnings, accounting for non-recurring gains, were $2.05 per share, surpassing the average estimate of three analysts surveyed by Zacks Investment Research, which was $1.90 per share.

The bank’s reported revenue for the period was $22.82 billion, with a net revenue, excluding interest expenses, of $9.59 billion, both exceeding Street forecasts. For the entire year, RBC disclosed a profit of $11.02 billion, or $7.78 per share, with reported revenue amounting to $41.62 billion.


Information for this briefing was found via Yahoo Finance, Quartz, and the sources 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

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

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

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

Is Royal Bank Of Canada Hurting From Office Lease Rates?

Royal Bank of Canada (TSX: RY) has asked employees to return to the office three...

Wednesday, March 22, 2023, 03:37:00 PM

Royal Bank of Canada Reports Record Net Income In Q3 2025 As Credit Loss Provision Jumps 34%

Royal Bank of Canada (TSX: RY) reported record Q3 2025 net income of $5.41 billion,...

Wednesday, August 27, 2025, 10:44:00 AM

Competition Bureau Clears RBC’s $13.5B Acquisition of HSBC Canada

The Royal Bank of Canada (TSX: RY) has successfully secured approval from the Competition Bureau...

Saturday, September 2, 2023, 01:14:00 PM