• Royal Bank of Canada and National Bank of Canada are the latest banks to report their Q1 2024 financial results
  • Looking back at Q4 2023, Royal Bank saw its revenue rise to C$13.03 billion, while National Bank’s revenue rose to C$2.59 billion
  • Back in Q3 2023, National Bank reported a fiscal income of C$790 million, down from $826 million while Royal Bank’s income amounted to C$3.87 billion up from $3.58 billion
  • National Bank opened trading at C$106.63 per share and RBC stock opened trading at C$131.54 per share

Royal Bank of Canada (TSX:RY) and National Bank of Canada (TSX:NA) are the latest banks to report their Q1 2024 financial results.

In its Q1 2024, RBC earned C$3.6 billion (C$2.50 per share), beating the C$3.2 billion it saw in Q1 2023.

The bank explained that these results also reflected the impact of the planned acquisition of HSBC Bank Canada, including transaction and integration costs (C$218 million after-tax), and management of closing capital volatility (C$207 million after-tax).

However, its total provisions for credit losses increased C$281 million, or 53 per cent, from a year ago.

For the three months ended Jan. 31, RBC reported an adjusted profit of C$4.07 billion ($2.85 per share) compared with C$4.26 billion (C$3.04 per share) a year ago. Average analyst estimates had been for a profit of $2.80 per share.

Montreal-based National Bank’s net income (before provisions for credit losses and income taxes) was C$1.26 billion in Q1, up 8 per cent from C$1.17 billion in Q1 2023. Its diluted earnings per share was C$2.59 compared with C$2.47 in Q1 2023, beating analysts’ estimates of C$2.36.

Meanwhile its provisions for credit losses in Q1 rose to C$120 million from C$86 million.

The bank said these increases were driven by total revenue growth in all its business segments as well as by the impact of the Canadian government’s 2022 tax measures on income taxes in Q1 2023.

Looking back at Q4 2023, Royal Bank, the country’s biggest lender, saw its revenue rise 3.7 per cent to C$13.03 billion, from C$12.57 billion a year before.

The bank had posted a rise in quarterly profit of C$4.13 billion (up from C$3.88 billion a year earlier) on strong performances from its corporate and investment banking units. RBC also raised its dividend to C$1.38 per share – up from C$1.35.

National Bank reported a higher quarterly profit in Q4 and earned C$2.44 per diluted share on an adjusted basis, up from an adjusted profit of C$2.08 per diluted share in the same quarter last year. Its revenue clocked in at C$2.59 billion, up from C$2.33 in Q4 2022.

Its adjusted net income rose to C$867 million (C$2.44 per share) for that quarter, up from C$738 million (C$2.08 per share) in 2022.

Back in Q3 2023, National Bank had missed quarterly profit estimates, having reported a fiscal income of C$790 million, down 4 per cent from C$826 million a year earlier.

At the time, Royal Bank had beaten analysts’ estimates as its net income amounted to C$3.87 billion up from $3.58 billion, an 8.1 per cent increase from the year before.

Still to come, the Canadian Imperial Bank of Commerce (TSX:CM) and Toronto Dominion Bank (TSX:TD) deliver their results on Thursday. Earlier this week, Bank of Montreal (TSX:BMO; NYSE:BMO) and Bank of Nova Scotia (TSX:BNS; NYSE BNS) also reported that loan-loss provisions also rose in Q1 2024.

Royal Bank of Canada is one of the largest banks in the world, based on market capitalization and has a diversified business model. Its segments include personal and commercial banking, wealth management, insurance and capital markets.

National Bank of Canada operates through four segments: Personal and commercial, wealth management, financial markets, and U.S. specialty finance and international.

National Bank opened trading at C$106.63 per share.

RBC stock opened trading at C$131.54 per share.

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