Royal Bank of Canada(NYSE: RY) has reported after adjusting to exclude a C$212 million gain from the sale of Moneris Solutions Inc., the U.S. operations of a payment processor, and other items, the earnings per share of C$1.87 in the first quarter 2017. This has beaten the analysts’ expectation for adjusted earnings per share of C$1.77. On the other hand, the revenue in 1Q 2017 has reported 2 percent growth in the revenue to C$9.55 billion, missing the analysts’ expectation of $9.58 billion. Consequently, the stock wiped over 0.9% this morning (as of 11:14 AM EST on Feb 24th, 2017; Source: Google finance).
The total gross impaired loans (GIL) is of $3,559 million was down $344 million from last quarter, majorly due to the repayments in the oil & gas sector in Capital Markets, a decrease in Wealth Management mainly due to a decline in acquired credit-impaired loans related to City National, and repayments in the Caribbean Banking portfolio. The total GIL ratio of 0.66% was down 7 bps as compared to last quarter.
The insurance revenue fell 57% because of the sale of its home and auto insurance manufacturing business, but earnings grew 2%. The net interest income has grown 3.1% as fee-based income added 1.1%. The noninterest expenses grew 5% from the year before as a decrease in salaries was offset by increases in a variable and stock-based compensation. In addition, the revenue from personal and commercial banking operations grew 9.4%, due to the volume growth of 6% and partially offset by lower spreads. The wealth-management revenue grew 16% on higher net interest income because of volume growth and growth in average assets and transaction revenue.
Royal Bank of Canada is focused on building a digital relationship with its clients. The number of active digital customers, including both online and mobile, grew 7% to 5.9 million, including a 21% increase in the mobile active users.
Royal Bank of Canada has increased the quarterly common share dividend of four cents per share, or five per cent, to 87 cents per share.
Meanwhile, Royal Bank of Canada has announced the changes in the senior executives and Jennifer Tory, currently, the Group Head Personal & Commercial Bank (P&CB) are appointed as the Chief Administrative Officer (CAO). Neil McLaughlin, currently Executive Vice-President, Business Financial Services, P&CB will become Group Head P&CB, by replacing Ms. Tory.
Royal Bank of Canada stock has risen 37.85% in a year (source: Google Finance).