Company News

UPDATE 1-RBC posts 11 percent rise in second-quarter earnings

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TORONTO, May 24 (Reuters) - Royal Bank of Canada, Canada’s biggest lender by market value, on Thursday posted an 11 percent rise in its second-quarter earnings, helped by strong growth at its wealth management and retail businesses.

The bank said earnings per share totaled C$2.06 in the quarter to Mar. 31. Excluding one-off items, earnings per share rose to C$2.10. Analysts had on average forecast earnings of C$2.05, Thomson Reuters I/B/E/S data showed.

Net income increased by 9 percent compared with the previous year to C$3.1 billion ($2.4 billion). That included net income of C$1.46 billion at its personal & commercial banking business, up 7 percent reflecting improved margins and sales.

The bank’s wealth management business lifted net income by 25 percent to C$537 million, in part reflecting benefits from tax reform in the United States.

RBC’s investment banking business fared less well, with net income totaling C$665 million, roughly unchanged on a year ago amid less favorable market conditions. ($1 = 1.2853 Canadian dollars) (Reporting by Matt Scuffham editing by Jason Neely/Keith Weir)