An Update on Quarterly Results - Report on Royal Bank of Canada

NEW YORK, September 22, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Royal Bank of Canada (NYSE: RY). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/RY.pdf  

Highlights from our RY Report include:

• Highlights from Q3 2015 - On August 26, 2015, Canada's largest bank, Royal Bank of Canada (RBC) announced results for the third quarter ended July 31, 2015. Net income for the quarter witnessed a 4% or $97 million year-over-year jump to $2,475 million. Excluding specified items, net income grew by 2% or $57 million YoY in Q3 2015. Sequentially, net income was down 1% and was up 3% excluding specified items. Results for the quarter reflected record earnings in Personal & Commercial Banking, strong growth in Investor & Treasury Services and stable earnings in Wealth Management. However, lower earnings in Capital Markets and in the Insurance weighed on the performance.

• Credit quality remained strong - RBC's total provision for credit loss (PCL) stood at $270 million in Q3 2015, down $13 million or 5% YoY, as a result of lower PCL in Caribbean Banking. Higher PCL in Capital Markets and Canadian Banking, however, partially offset the decline. Sequentially, PCL declined by $12 million or 4% mainly due to lower PCL in Wealth Management this quarter, partially offset by higher provisions in Canadian Banking. PCL ratio, for the quarter stood at 0.23%, down 3 basis points (bps) compared to last year and down 2 bps compared to last quarter.

• Segment-wise Performance - For Q3 2015, net income from Personal & Commercial Banking business grew strongly by 13% YoY to a record $1,281 million. Within Personal & Commercial Banking business, Canadian Banking net income surged 5% YoY to $1,239 million; while Caribbean & US Banking net income of $42 million, compared to a net loss of $47 million in Q3 2014. Net income from Wealth Management segment remained unchanged at $285 million. Net income from Insurance was down 19% YoY to $173 million in Q3 2015. Further, income from Investor & treasury Services grew strongly by 52% YoY to $167 million in Q3 2015. Net income from Capital Markets declined 15% YoY to $545 million, while from Corporate Support segment net income arrived at $24 million against a net loss of $10 million in the prior year period.

• Management Speak - RBC President and CEO, Dave McKay said, "RBC achieved strong results for the first nine months of the year and we believe our diversified business model, by segment and geography, along with our differentiated client-focused strategy, positions us to continue adapting to the changing market and to economic headwinds."

To find out how this influences our rating on Royal Bank of Canada, read the full report in its entirety here: http://www.aciassociation.com/RY.pdf

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