Income from Personal & Commercial Banking rose by 8%, on improved deposit spreads resulting from higher Canadian interest rates, solid growth in Canadian residential mortgages, commercial lending, and deposit products. Income from Wealth Management grew by 19%, on positive equity market performance and client activity, as well as strong volume growth, higher interest rates, and a lower effective tax rate.
Income from Insurance declined 2% due to higher costs supporting sales growth and client service activities, while that from Capital Markets increased by 14%, primarily due to higher revenue in Corporate and Investment Banking and Global Markets.
Adjusted EPS were C$2.14, up from C$1.89 a year ago. Revenue rose by 9% to C$11 billion, helped by higher revenue growth in Personal & Commercial Banking and Wealth Management. Expenses rose by 6% due to its continued investments to support business growth, including technology and digital initiatives.
The 90-day Active Mobile users increased 18% from a year ago to 3.7 million, resulting in a 22% increase in mobile sessions. Digital adoption rate increased by 4 points year-over-year to 49.4%.
Shares of Royal Bank of Canada ended Tuesday’s regular session down 0.56% at $78.48 on the NYSE. The stock had risen over 7% for the past year, while it had fallen more than 3% for the year-to-date.