3rd Quarter Results
To view the Third Quarter 2020 Earnings Release in PDF, please click on the link below.
http://www.rns-pdf.londonstockexchange.com/rns/2624X_1-2020-8-26.pdf
THIRD QUARTER 2020
EARNINGS RELEASE
| ROYAL BANK OF CANADA REPORTS THIRD QUARTER 2020 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. Our Q3 2020 Report to Shareholders and Supplementary Financial Information are available at: http://www.rbc.com/investorrelations.
| Net Income$3.2 BillionDown 2% YoY | Diluted EPS1$2.20Down 1% YoY | Total PCL2$675 MillionTotal PCL ratio on loans down 125 bps3 QoQ | ROE415.7%Down 100 bps YoY | CET1 Ratio12.0%Well above regulatory requirements |
TORONTO, August 26, 2020 - Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $3,201 million for the quarter ended July 31, 2020, down $62 million or 2% from the prior year. Diluted EPS was $2.20, down 1% over the same period. Our results reflect record earnings in Capital Markets as well as solid earnings in Insurance. However, these results were offset by lower earnings in Personal & Commercial Banking, Wealth Management and Investor & Treasury Services, largely due to the impact of lower interest rates.
Compared to last quarter, net income was up $1,720 million with higher results in Capital Markets, Personal & Commercial Banking and Wealth Management, including lower provisions (total PCL was down $2,155 million from last quarter) as the impact of the onset of the COVID-19 pandemic on provisions was reflected in the prior quarter. Higher results in Insurance also contributed to the increase. These factors were partially offset by lower results in Investor & Treasury Services.
The total PCL ratio on loans was 40 bps, down 125 bps from last quarter. The PCL ratio on impaired loans of 23 bps decreased 14 bps from last quarter, largely reflecting lower provisions in Capital Markets and Personal & Commercial Banking. Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 12.0%, up 30 bps from last quarter. We also had a strong average Liquidity Coverage Ratio (LCR) of 154%.
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"We continue to navigate these uncertain times from a position of strength and stability. Our robust capital and liquidity position, diversified business model, prudent approach to risk management, and technology capabilities provide the foundation to enable our people to continue supporting clients, providing advice and creating more value today and over the long-term," said Dave McKay, RBC President and Chief Executive Officer. "RBC has a proud history of helping our clients thrive and communities prosper. Since the onset of the COVID-19 pandemic, RBCers have shown their unwavering commitment to delivering on our Purpose by enabling the re-emergence of our economies and supporting our clients with empathy and dedication." |
| Q3 2020Compared toQ3 2019 | • Net income of $3,201 million• Diluted EPS of $2.20• ROE of 15.7%• CET1 ratio of 12.0% | i 2%i 1%i 100 bpsh 10 bps | ||
| Q3 2020Compared toQ2 2020 | • Net income of $3,201 million• Diluted EPS of $2.20• ROE of 15.7%• CET1 ratio of 12.0% | h 116%h 120%h 840 bpsh 30 bps | ||
| YTD 2020Compared toYTD 2019 | • Net income of $8,191 million• Diluted EPS of $5.60• ROE of 13.6% | i 15%i 15%i 340 bps | ||
1 Earnings per share (EPS).
2 Provision for credit losses (PCL).
3 Basis points (bps).
4 Return on equity (ROE). This measure does not have a standardized meaning under GAAP. For further information, refer to the Key Performance and non-GAAP measures section on page 3 of this Earnings Release.
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