RBC, National Bank shares hit record highs on strong earnings

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TORONTO — Shares of Royal Bank of Canada and National Bank hit all-time highs on Wednesday as the two banks reported earnings that topped expectations.

Both banks reported notable revenue growth despite the economic headwinds that helped push profits higher, while RBC also reported much lower-than-expected loan loss provisions.

On an adjusted basis, RBC says it earned $3.26 per diluted share, up from an adjusted profit of $2.83 per diluted share a year ago. While the bank set aside more money in total, the proportion of loans under provision fell 0.02 percentage points from last year and 0.14 percentage points from the previous quarter.

RBC chief risk officer Graeme Hepworth did, however, caution that the bank is still seeing borrower stress with more expected ahead. The better performance in the quarter was more related to wholesale, both in capital markets and its City National segments, compared with previous quarters. National Bank also warned that there is still uncertainty ahead while reporting a third-quarter profit of $1.03 billion, up from $830 million a year ago.On an adjusted basis, National Bank says it earned $2.68 per diluted share in its most recent quarter, up from an adjusted profit of $2.18 in the same quarter last year.

 

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