RBC earnings: -20.5% in insurance, + 4.4% in wealth management

RBC financial group reports a net profit of $ 3.6 billion (B $) for all of its businesses in the third quarter of 2022, which ran from May 1 to July 31. This result is down 16.7% or $ 719 million (M $) from net profit of $ 4.3 billion in the third quarter of 2021.

“The results for the current quarter include the impact of loan loss provisions that were recognized during this period compared to the previous year’s reversals,” says the financial institution.

“Notre bénéfice reflète la diminution des résultats des secteurs marchés des capitaux, services bancires aux particuliers et aux entreprises et assurances, facteur compensé en partie par la hausse de celui des secteurs services aux investisseurs et de trésorerie et gestion de patrimoine”, précise-t -She.

Insurance

Therefore, for its insurance sector, RBC records a net profit of $ 186 million in the third quarter of 2022, compared to $ 234 million in the third quarter of 2021. It decreased by 20.5% or $ 48 million, “which mainly a due to the impact of new longevity risk reinsurance contracts entered into a year earlier, “RBC said.

Wealth management

For its wealth management segment, RBC reported net income of $ 777 million in the third quarter of 2022, compared to $ 744 million in the third quarter of 2021. It was up 4.4% or $ 33 million, “mainly due to of interest margin growth, “says RBC.

“This factor was mitigated by higher non-interest expenses, including personnel and technology costs, as well as higher accruals for interest and credit losses. Non-interest income was weakened by difficult market conditions.

Insurance income

RBC insurance revenue was $ 1.2 billion in the third quarter of 2022, compared to $ 1.7 billion in the third quarter of 2021. It was down 29.7% or $ 521 million.

In detail, we note that in Canada, RBC reports insurance revenues of $ 597 million in the third quarter of 2022, compared to $ 1.1 billion in the third quarter of 2021. They decreased by 47.4% or 539 million, “mainly due to the change in the fair value of investments hedging insurance policy obligations and the decline in sales of group annuities, both largely offset by indemnities, claims and ‘acquisitions relating to insurance policies’.

Internationally, insurance revenues reached $ 636 million in the third quarter of 2022, compared to $ 618 million in the third quarter of 2021. They increased by 2.9% or $ 18 million, “mainly due to the change in fair value. investments in support of the obligations of the policies, which was mitigated by lower income from reinsurance of the longevity risk, both amply offset by indemnities, claims and acquisition costs relating to insurance policies “.

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