<\/p>\n
Revenue rose to $15.7 billion as profit and loan loss provisions increased.<\/p>\n
Royal Bank of Canada\u2019s cautious outlook on the future led to a notable build in its provisions for potential loan losses in the quarter, though profits also rose and it increased payouts to shareholders.<\/p>\n
The bank reported a second-quarter profit of $4.4 billion, up from $3.95 billion in the same quarter last year. It also increased its dividend by six cents, or 4%, to $1.54 per share and announced plans to buy back up to 35 million shares.<\/p>\n
The rise in payouts came even as the bank factored in a new downside scenario to its risk analysis, looking at the potential fallout from trade disruptions.<\/p>\n
\u201cThis new scenario reflects the potential for a severe North American recession driven by an escalating global trade war and rising geopolitical risks that translate into a rapid rise in unemployment, higher inflation, disruptions in supply chains, and a sharp decrease in asset prices,\u201d said chief risk officer Graeme Hepworth on an earnings call.<\/p>\n
The bank\u2019s outlook helped lead it to set aside $1.42 billion for potentially bad loans, up from $920 million a year earlier, and changed where the bank was allocating reserves.<\/p>\n
But for now, the bank \u2014 like others this quarter \u2014 has seen borrowers hold up better than feared.<\/p>\n
\u201cClients continue to demonstrate resilience, with credit performance improving as interest rate cuts and wage growth have made it easier to service debt,\u201d said Hepworth.<\/p>\n
\u201cMortgage renewal pricing and refinancing risk have played out better than we anticipated.\u201d<\/p>\n
Revenue totalled $15.67 billion in the quarter, up from $14.15 billion.<\/p>\n
The bank\u2019s profits amounted to $3.02 per diluted share for the quarter ended April 30, up from a profit of $2.74 per diluted share a year earlier.<\/p>\n
On an adjusted basis, RBC said it earned $3.12 per diluted share in its latest quarter, up from an adjusted profit of $2.92 per diluted share in the same quarter last year.<\/p>\n
The average analyst estimate had been for an adjusted profit of $3.19 per share, according to LSEG Data & Analytics.<\/p>\n
Analysts noted that the bank\u2019s more conservative approach helped lead to the miss, while most of the other big Canadian banks beat expectations this quarter on lower-than-expected provisions. But they also noted other pockets of concern, including overall margins.<\/p>\n
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Revenue rose to $15.7 billion as profit and loan loss provisions increased. Royal Bank of Canada\u2019s cautious outlook on the future led to a notable build in its provisions for potential loan losses in the quarter, though profits also rose and it increased payouts to shareholders. The bank reported a second-quarter profit of $4.4 billion, […]<\/p>\n","protected":false},"author":1,"featured_media":4184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/RBC-23-1140x445.jpg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/RBC-23-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/RBC-23-300x200.jpg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/06\/RBC-23-scaled.jpg",2560,1707,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=4183"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4183\/revisions"}],"predecessor-version":[{"id":4185,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/4183\/revisions\/4185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/4184"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=4183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=4183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=4183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}