Lower third quarter profit for two institutions

Earnings before credit loss allowances and tax charges increased from $ 1.038 billion to $ 1.107 billion.

The Personal and Business segment posted net income of $ 335 million in the third quarter of 2022 compared to $ 303 million a year earlier, an 11% growth that the National Bank attributes to the increase in total income, mitigated. from higher indemnities for credit losses.

Over the same period, the net profit of the financial markets segment increased from $ 249 million to $ 280 million, an increase of 12% attributable to the increase in total revenues.

National Bank of Canada president and chief executive officer Laurent Ferreira believes the results for the third quarter of fiscal year 2022 are excellent. He attributes them to strong growth in each of the operating segments. He says the Bank is in a strong position with high levels of capital and substantial loan loss provisions.

In addition, the Board of Directors of the National Bank of Canada has declared regular dividends on the various series of preferred stock, as well as a dividend of $ 0.92 per common share, payable on November 1.

A drop of 17% in one year

The Royal Bank of Canada records a significant 17% one-year drop in its net income for the third quarter, which fell to $ 3.6 billion for the quarter ended July 31. The drop was $ 719 million.

Meanwhile, diluted earnings per share fell 15% to $ 2.51 over the same period.

Earnings before endowment and taxes were $ 4.9 billion, down $ 136 million or 3% from a year ago, which according to the institute mainly reflects lower revenues from the capital markets sector. . Net income for this segment fell 58% year-on-year from $ 650 million to $ 479 million, primarily due to the impact of pre-tax loan underwriting reductions of $ 385 million primarily to the United States, in largely the result of difficult market conditions.

Royal Bank noted that in the third quarter of the current fiscal year, personal and commercial banking, general support services and insurance also weakened, which was partially offset by an increase in investment services segments. and treasury and asset management.

RBC President and CEO Dave McKay says that despite uncertain times, the Royal Bank remains in a strong position and has a solid balance sheet. In his opinion, Royal Bank’s size, scope and diversified business model will enable it to continue to create value.

On the other hand, Royal Bank announces that its board of directors has declared a quarterly dividend on its common stock of $ 1.28 per share. The dividend will be paid by 23 November.

Leave a Comment