LCR levels remained relatively stable compared to last quarter as loan growth was offset by an increase in client deposits and issuances of term funding. ![]() Liquidity – For the quarter ended July 31, 2022, the average LCR was 123%, which translates into a surplus of approximately $66 billion, compared to 121% and a surplus of approximately $64 billion in the prior quarter. These factors were partially offset by lower compensation on decreased results and lower taxes reflecting changes in earnings mix.Ĭapital – As at July 31, 2022, our CET1 ratio was 13.1%, down 10 bps from last quarter, mainly reflecting share repurchases and risk-weighted assets growth (excluding FX), partially offset by net internal capital generation. and Europe and lower debt origination, M&A activity and commodities trading revenue across all regions also contributed to the decrease. Lower loan syndication activity in the U.S. These factors were partially offset by lower compensation on decreased results and record lending revenue.Ĭompared to last quarter, net income decreased $316 million or 40%, mainly due to lower fixed income trading revenue, including the impact from loan underwriting markdowns primarily in the U.S., largely driven by challenging market conditions. Releases of provisions on performing loans in the prior year, lower debt and equity origination, and lower loan syndication activity also contributed to the decrease. Net income of $479 million decreased $650 million or 58% from a year ago, mainly due to the impact from loan underwriting markdowns of $385MM (before-tax) primarily in the U.S., largely driven by challenging market conditions. These factors were partially offset by higher net interest income driven by higher spreads, the impact of three more days in the current quarter and average volume growth of 3% in Canadian Banking. Higher staff-related costs also contributed to the decrease. These factors were partially offset by higher net interest income (up 14%) driven by average volume growth of 10% in loans (including double-digit growth in residential mortgages, business lending and credit cards) and 9% in deposits in Canadian Banking, as well as improved spreads driven by higher interest rates.Ĭompared to last quarter, net income decreased $211 million or 9%, primarily attributable to provisions taken on performing loans in the current quarter reflecting unfavourable changes in our macroeconomic outlook as compared to releases of provisions in the prior quarter mainly reflecting reduced uncertainty relating to the COVID-19 pandemic. Net income of $2,023 million decreased $90 million or 4% from a year ago, primarily attributable to provisions taken on performing loans in the current quarter as compared to releases of provisions on performing loans in the prior year. – Dave McKay, RBC President and Chief Executive Officer Looking ahead, our size, scale and diversified business model will continue to create value for our clients, communities and shareholders." Our balance sheet is strong and our talented team is as focused as ever on delivering the innovative products, insightful advice and leading partnerships that our clients count on. "In an uncertain world, we continue to operate from a position of strategic and financial strength. ![]() Our capital position remained robust, with a Common Equity Tier 1 (CET1) ratio of 13.1% supporting strong client-driven organic growth, $1.8 billion in common share dividends and $1.3 billion (or 10.4 million common shares) in common share buybacks. The PCL on impaired loans ratio of 8 bps was down 1 bp from last quarter. The PCL on loans ratio of 17 bps was up 35 bps from (18) bps last quarter, due to provisions taken in the current quarter as compared to releases of provisions in the prior quarter. Results also included the impact of lower variable and share-based compensation.Ĭompared to last quarter, net income was down $676 million or 16% with lower results in Capital Markets, Personal & Commercial Banking, Corporate Support and Insurance partially offset by higher results in Investor & Treasury Services and Wealth Management. These factors were partially offset by higher net interest income driven by strong volume growth and higher spreads in Canadian Banking and Wealth Management. ![]() Higher salaries, technology investments and discretionary costs to support strong client-driven growth, also contributed to the decrease. Pre-provision, pre-tax earnings 7 of $4.9 billion were down $136 million or 3% from a year ago, mainly due to lower revenue in Capital Markets, including the impact from loan underwriting markdowns, largely driven by challenging market conditions.
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