Results were boosted to some extent by the inclusion of a purchased business from HSBC. However, on an underlying basis, results were still positive.

Toronto-headquartered Royal Bank of Canada yesterday said it logged net income of C$5.1 billion ($3.53 billion) for the three months to January 31, rising 43 per cent from the same period a year earlier.

The bank said that the inclusion of HSBC Bank Canada (HSBC Canada) results – the business that RBC has bought – boosted the net income result by C$214 million. 

Adjusted net income was $5.3 billion, rising 27 per cent.

(Canadian banks' quarterly reporting tends to follow a different pattern to the calendar year approach of most. The "first" quarter of 2025 for CIBC is three months to end-January 2025.)

Wealth
In the wealth management side, RBC said net income of $980 million increased $316 million or 48 per cent from a year ago, mainly due to higher fee-based client assets reflecting market appreciation and net sales, which also drove higher variable compensation. (The prior year also included the cost of the Federal Deposit Insurance Corporation special assessment.)

RBC had a Common Equity Tier 1 capital ratio – a bank’s shock absorber – of 13.2 per cent.