Royal Bank Of Canada Q2 Profits Tumble 13% On Huge Provision For Credit Losses

Royal Bank of Canada RY reported a Q2 FY23 adjusted net income of C$3.8 billion, down 13% Y/Y.
Adjusted EPS declined by 11% Y/Y to C$2.65 for Q2.
Results were impacted by high provisions for credit losses of C$600 million vs. C$(342) million a year ago. Notably, PCL on performing loans stood at C$173 million vs. C$(504) million the prior year.
Revenues for the quarter rose to C$13.5 billion from C$11.2 billion a year ago.
Net income in Personal & Commercial Banking was C$1.92 billion (-14% Y/Y), Wealth Management C$742 million (-8% Y/Y), Insurance C$139 million (-33% Y/Y), and Capital Markets C$939 million (+10% Y/Y).
Adjusted ROE contracted by 370 bps to 14.9%, while the CET1 ratio stood at 13.7%, up 50 bps.
The average LCR was 135%, translating into a surplus of around C$102 billion.
Dividend: RY declared a quarterly dividend of C$1.35 per share, reflecting an increase of 2%, payable on and after August 24, 2023, to stockholders of record as on July 26, 2023.
Price Action: RY shares are trading lower by 0.10% at $91.01 premarket on the last check Thursday.
Photo Via Wikimedia Commons

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