- Royal Bank of Canada (TSX:RY) revealed a significant increase in its Q1 2025 profit on Thursday, driven by the performance in its wealth management unit
- The country’s top lender reported a fiscal Q1 profit of C$5.13 billion, marking a 43 per cent rise from C$3.58 billion in the same quarter a year earlier
- RBC’s profit for the quarter ended January 31st, 2025, amounted to C$3.54 per share, up from C$2.50 per share a year earlier
- Royal Bank of Canada stock (TSX:RY) opened trading at C$171.75
Royal Bank of Canada (TSX:RY) revealed a significant increase in its Q1 2025 profit on Thursday, driven by the performance in its wealth management unit.
According to its news release, the country’s top lender reported a fiscal Q1 profit of C$5.13 billion, marking a 43 per cent rise from C$3.58 billion in the same quarter a year earlier.
RBC’s profit for the quarter ended January 31st, 2025, amounted to C$3.54 per share, up from C$2.50 per share a year earlier. This performance surpassed the consensus estimate among analysts, who had predicted earnings per share of C$3.26.
The bank’s revenue for the latest quarter totaled C$16.74 billion, reflecting a 24 per cent increase from C$13.49 billion in the previous year. RBC’s management attributed the strong results to the completion of its C$13.50 billion acquisition of HSBC Bank Canada, which added 130 branches and approximately 750,000 retail and commercial customers nationwide.
The wealth management unit played a crucial role in RBC’s success, with net income in this segment jumping 48 per cent to C$980 million from a year ago. The favourable environment for mergers and acquisitions, bolstered by the Canadian central bank’s decision to continue cutting rates, also contributed to the positive results.
Other major Canadian banks, including the Bank of Montreal (TSX:BMO), Bank of Nova Scotia (TSX:BNS), and National Bank of Canada (TSX:NA), also exceeded profit expectations earlier this week, benefiting from strong wealth management revenue.
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.
Royal Bank of Canada stock (TSX:RY) opened trading at C$171.75 and has risen 27.19 per cent since this time last year.
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(Top photo source: rbc.com)
