2nd Quarter Results

ROYAL BANK OF CANADA 

Q2 2018 REPORT TO SHAREHOLDERS (PART I OF II) 

  

To view the Report to Shareholders in PDF, please click on the link below. 

  

http://www.rns-pdf.londonstockexchange.com/rns/3996P_-2018-5-25.pdf 

  

Royal   Bank of Canada second quarter 2018 results   

All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. Effective November 1, 2017, we adopted IFRS 9 Financial Instruments. Prior period amounts are prepared in accordance with IAS 39 Financial Instruments: Recognition and Measurement.  

  

  Net   Income   $3.1   Billion   Strong   earnings  growth   of 9% YoY      Diluted   EPS   $2.06   Double-digit   growth of   11% YoY      ROE   18.1%   Balanced   capital deployment for   premium ROE      CET1   Ratio   10.9%   $224   million of share repurchases   in Q2 2018   

TORONTO, May 24, 2018 - Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $3,060 million for the second quarter ended April 30, 2018, up $251 million or 9% from the prior year with double-digit diluted EPS(1) growth of 11%. Results reflect strong earnings growth in Wealth Management, Personal & Commercial Banking, and Investor & Treasury Services, and solid earnings in Insurance. Capital Markets performance was stable amidst less favourable market conditions. Strong credit quality also contributed to results, with provision for credit losses (PCL) on impaired loans ratio of 22 basis points (bps) reflecting a benign credit environment.  

Compared to last quarter, net income was up $48 million or 2%, though market-related revenue moderated from strong first quarter levels. Continued margin expansion and strong loan growth on both sides of the border helped to offset the impact of a less favourable market environment and fewer days in the current quarter. The prior quarter also included the write-down of net deferred tax assets related to the U.S. Tax Reform(2).  

  

"We maintained good momentum   in the second quarter, delivering earnings of $3.1 billion. Our businesses   executed on client-focused growth strategies while continuing to demonstrate   strong risk management. As we transform the bank to create more value for our   clients, we're proud to once again be ranked highest in overall customer   satisfaction by J.D. Power."                                                                                                                                               - Dave McKay, RBC President and Chief Executive Officer                                                                                                                                                                                                                                           

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