The Royal Bank of Canada (RBC) has reported an increase of 17% in its fourth quarter earnings, spurred by its retail banking and wealth management units.
The Toronto-based financial services firm’s results were higher than forecasted, with the bank’s earnings per share reaching $2.20 in the review period up from the predicted $2.12, according to IBES data from Refinitiv.
RBC’s net income rose by 15% to hit $3.25bn during the review period, Reuters reported.
The firm’s net income from it’s retail banking division grew by 10% to $1.54bn. The unit’s success has been attributed to margins and growth in deposits, residential mortgages, and commercial lending.
The wealth management business saw its net income grow by 13% during the three months to reach $553bn, due to higher client fees.
The company’s insurance net income expanded by 20% year-on-year to $318mn.
The investment banking unit saw its net income increase by 14% to $666mn, with the growth being attributed to tax reforms in the US and market volatility leading to higher trading revenue.