On Thursday, the Royal Bank of Canada (RY.TO) said its earnings for the fourth quarter had increased. This was due to the fact that the bank’s corporate and investment banking segment had a solid performance, which helped to offset the negative impact of larger loan default provisions.
The capital markets division of the largest Canadian bank benefited from a revival in the deal-making process. According to the bank, corporate and investment banking success increased the company’s net income by 36% to 987 million Canadian dollars.
On the other hand, the company increased its provisions for credit losses (PCLs) in response to the deteriorating economic outlook, which necessitated more prudence. PCLs at the bank increased for the first time in a year, going from C$381 million to C$720 million.
Because of the aggressive rate hikes implemented by the central bank, Canada’s economy has been on the verge of a recession, highlighting the significance of these rate hikes.
Also, RBC has been working to improve liquidity at its subsidiary in the United States, City National Bank. In a report submitted to the authorities a month ago, City National stated that RBC had contributed around $2.95 billion to the bank during the current year.
A year ago, the bank recorded a net income of C$3.88 billion, or C$2.74 per share, for the three months that ended on October 31. However, for the three months that ended on October 31, the bank reported a net income of C$4.13 billion ($3.04 billion), or C$2.90 per share.
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