Earnings Stabilize for Royal Bank of Canada in Q3

Thanks to lower provisioning and top-line growth help

Eric Compton 27 August, 2020 | 8:24AM

Wide-moat Royal Bank of Canada (RY) reported good fiscal third-quarter results, all things considered. The strain from provisioning was much lower in the third quarter compared with the second quarter, and adjusted diluted EPS was only down 1% year over year, at $ 2.23 per share. Pre-provision net revenue growth was 6%, showing the resiliency of core revenue, while provisioning came in at $ 675, up roughly 60% year over year but down significantly compared with the $ 2.8 billion second quarter provisioning charge. Return on equity was a strong 15.7%. The trend in provisioning was better than what we saw for BMO and Scotiabank, and more in line with what we have seen with National Bank

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Royal Bank of Canada95.47 CAD-1.10

About Author

Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

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