Royal Bank of Canada (RY) has reported quarterly results that show the lender’s net income rose 6% year-over-year to $4.1 billion.
Royal Bank, Canada’s largest lender by assets, is the first of the country’s big six banks to report earnings.
The Bay Street firm said its net profit was the result of its core domestic banking business offsetting weakness in its capital markets unit. On an adjusted basis, the bank earned $2.87 per share. Analysts were expecting a per-share profit of $2.72.
Royal Bank’s quarterly revenue rose to $13.07 billion, beating the average estimate of $12.43 billion. Profit from personal and commercial banking climbed 10% to $1.97 billion.
In its Canadian banking business, Royal Bank reported continued growth in its mortgage unit, with the average balance rising to $338.2 billion from $329.5 billion in the fourth quarter.
However, the lender’s capital markets unit reported a 3% drop in profit as net income fell to $1.03 billion; that’s despite a record performance from its corporate and investment banking operations, where revenue rose to $1.39 billion from $1.11 billion a year earlier.
Royal Bank’s global markets business saw revenue drop to $1.5 billion from $1.63 billion a year earlier. In a news release, the bank blamed lower fixed income trading revenue in the U.S. and Europe for the decline.