Royal Bank of Canada

XMUN:RYC

Record quarter: RBC reported record earnings of $6 billion, up 11% year-over-year, with revenue up 9% and return on equity of 17.9%.

Broad growth: Wealth Management, Capital Markets and Commercial Banking delivered record revenue and net income, while Personal Banking Canada posted record revenue despite lower net income.

Client activity: Mortgage growth accelerated to 1.8% sequentially, commercial deposits grew 9% year-over-year, and wealth assets under administration rose 20% in Canada and 14% in the U.S.

Growth investments: RBC is creating a global transaction banking business and expects to provide more detail and performance measures in Q4. Management also sees a long-term opportunity from AI-related infrastructure spending.

Credit remains controlled: Provisions on performing loans were $21 million, while provisions on impaired loans rose to 35 basis points. Management maintained its full-year impaired-loan provision outlook.

Capital deployment: The CET1 ratio remained 13.5%, while RBC repurchased 5.6 million shares for approximately $1.6 billion. Management expects the ratio to move toward the midpoint of its 12.5% to 13.5% range over time.

Guidance reaffirmed: RBC reiterated its full-year targets, including mid-single-digit growth in net interest income excluding trading and expense growth within its mid-single-digit range.