Royal Bank of Canada (TSX: RY) has unveiled its Q1 2025 earnings, driven by both robust organic growth and the ongoing integration of HSBC Bank Canada. The bank reported net income of $5.13 billion for the quarter, up 43% from $3.58 billion in the same period last year and 22% higher than $4.22 billion in the previous quarter. Diluted earnings per share of $3.54 rose by 42% year over year from $2.50 per share.
RBC’s total revenue climbed to $16.74 billion in Q1—up from $13.49 billion in the same quarter last year and $15.07 billion last quarter. The bottom line was buoyed by higher net interest income, improved fee-based revenue, and a notable contribution of $214 million to net income from the acquired HSBC Canada operations.
On an adjusted basis, RBC posted net income of $5.25 billion, representing a 29% gain year over year from $4.07 billion and an 18% increase from $4.44 billion in the previous quarter. Adjusted diluted EPS also grew 27% year over year to $3.62.
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Personal Banking posted net income of $1.68 billion, up 24% year over year. Excluding HSBC Canada’s contribution, growth stood at 17%, primarily due to wider spreads and moderate loan and deposit volume expansion.
Meanwhile, Commercial Banking recorded a 20% increase in net income from a year ago, aided by double-digit growth in loans and acceptances. Wealth Management also saw its net income contribution climb 48% year over year.
Insurance posted a 24% year-over-year gain in net income, while Capital Markets reported a net income jump of also 24% from last year.
RBC’s Common Equity Tier 1 ratio remained at 13.2 percent, unchanged from last quarter. The bank reported it returned $2.4 billion to shareholders in the quarter through dividends and share repurchases.
Provisions for credit losses totaled $1.05 billion, a 29% rise from last year and a 25% increase from the previous quarter, attributed primarily to higher impaired loan provisions in Commercial Banking, Wealth Management, and Personal Banking.
The bank also announced it has declared a quarterly common share dividend of $1.48 per share, payable on or after May 23, 2025, unchanged from the previous quarter.
Royal Bank of Canada last traded at $171.42 on the TSX.
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