The bank’s revenue for Q4 FY24 amounted to C$15.1bn ($10.73bn), up 19% from C$12.68bn ($9.01bn) in Q4 FY23.

Royal Bank of Canada (RBC) has reported a 7% increase in its net income for the fourth quarter of fiscal year 2024 (Q4 FY24) at C$4.2bn ($2.98bn), compared to C$3.93bn ($2.79bn) posted in the corresponding quarter of the previous fiscal year.

In the previous quarter, that is Q3 FY24, the Canadian financial services company’s net income stood at C$4.48bn ($3.18bn), reflecting a 6% quarter-on-quarter decline.

The diluted earnings per share (EPS) for Q4 FY24 was C$2.91, a 5% increase from C$2.78 in Q4 FY23. On a quarterly comparison, the EPS dropped by 6% from C$3.1 in Q3 FY24.

RBC’s net income growth was driven by higher results in wealth management, personal banking, and insurance segments, along with contributions from the inclusion of HSBC Bank Canada.

The company’s revenue for Q4 FY24 amounted to C$15.1bn ($10.73bn), up 19% from C$12.68bn ($9.01bn) in Q4 FY23. In third quarter of FY24, RCB’s revenue was C$14.63bn.

Revenue growth is also attributed to the inclusion of HSBC Canada revenue. In addition, the increase is owed to higher net interest income as well as higher average mutual fund balances.

RBC president and CEO Dave McKay said: “As our results exemplify, our premium franchises delivered diversified revenue growth, underpinned by a strong balance sheet and prudent risk management.

“One of our year’s defining moments was the acquisition of HSBC Bank Canada, which marked a pivotal milestone in our client-driven growth story and strengthened our position as a competitive global financial institution.

“We also elevated a new generation of leaders across the bank to continue delivering trusted advice and experiences to rival the best in any industry.”

For the full fiscal year ended 31 October 2024, RBC posted a net income of C$16.2bn, an 11% increase from C$14.6bn in the prior year. The diluted EPS for FY24 stood at C$11.25, up 9% from C$10.32 in FY23.

The bank’s total annual revenue reached C$57.3bn representing an 11% growth compared to C$51.5bn in FY23.

The personal banking and commercial banking units of RBC reported a 9% earnings growth for FY24, driven by higher spreads, average volume growth in deposits and loans as well as inclusion of HSBC Canada results.

The bank’s wealth management unit posted a 27% increase in earnings.

RBC’s capital markets business saw a 10% rise in earnings, driven by higher revenue in corporate and investment banking and lower provision for credit losses (PCL).