Latest news with #DaveMcKay
Mint
02-06-2025
- Business
- Mint
RBC Misses Estimates as Bank Prepares for Bad Loans
(Bloomberg) -- Royal Bank of Canada missed estimates after setting aside more money than expected to cover possible loan losses amid a faltering economy even as income rose across most business lines. Canada's No. 1 lender earned C$3.12 per share on an adjusted basis in its fiscal second quarter, according to a statement Thursday, falling short of the C$3.18 average estimate of analysts in a Bloomberg survey. Provisions for credit losses totaled C$1.42 billion ($1.03 billion) for the three months through April, more than the C$1.26 billion analysts had forecast. As the Canadian economy weakens in the face of US tariff uncertainty, the country's big banks are preparing by putting aside more money for loans that are still in good standing. Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, National Bank of Canada and Canadian Imperial Bank of Commerce which have reported results over the past week, all increased their provisions for performing loans compared with the first quarter. Royal Bank's provisions for performing loans totaled C$568 million in the second quarter, up from C$68 million in the first three months of the fiscal year. Provisions for impaired loans declined to C$852 million from C$985 million in the first quarter. 'In a quarter hallmarked by macroeconomic uncertainty and market volatility, Team RBC continued to step up for our clients with the advice, insights and experiences they expect from us,' Chief Executive Officer Dave McKay said in the statement. Royal Bank, the last of the country's large lenders to report quarterly results, acquired HSBC Holdings Plc's Canadian assets in early 2024, and that's expected to generate about C$740 million in annual cost savings by early next year. The combination of the two firms is also forecast to produce about C$300 million in revenue synergies by 2027, Royal Bank said at an investor day in March. The lender didn't unveil any major changes in strategy at that time, saying it would keep pursuing growth in Canada, look to expand fee-based revenue from its capital-markets and wealth-management businesses, and keep investing in technology, including artificial intelligence. (Corrects estimate figure in second paragraph.) More stories like this are available on
Mint
29-05-2025
- Business
- Mint
RBC Earnings Miss Estimates as Bank Prepares for Souring Loans
(Bloomberg) -- Royal Bank of Canada missed estimates after setting aside more money than expected to cover possible loan losses amid a faltering economy even as income rose across most business lines. Canada's No. 1 lender earned C$3.12 per share on an adjusted basis in its fiscal second quarter, according to a statement Thursday, falling short of the C$3.20 average estimate of analysts in a Bloomberg survey. Provisions for credit losses totaled C$1.42 billion ($1.03 billion) for the three months through April, more than the C$1.26 billion analysts had forecast. As the Canadian economy weakens in the face of US tariff uncertainty, the country's big banks are preparing by putting aside more money for loans that are still in good standing. Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, National Bank of Canada and Canadian Imperial Bank of Commerce which have reported results over the past week, all increased their provisions for performing loans compared with the first quarter. Royal Bank's provisions for performing loans totaled C$568 million in the second quarter, up from C$68 million in the first three months of the fiscal year. Provisions for impaired loans declined to C$852 million from C$985 million in the first quarter. 'In a quarter hallmarked by macroeconomic uncertainty and market volatility, Team RBC continued to step up for our clients with the advice, insights and experiences they expect from us,' Chief Executive Officer Dave McKay said in the statement. Royal Bank, the last of the country's large lenders to report quarterly results, acquired HSBC Holdings Plc's Canadian assets in early 2024, and that's expected to generate about C$740 million in annual cost savings by early next year. The combination of the two firms is also forecast to produce about C$300 million in revenue synergies by 2027, Royal Bank said at an investor day in March. The lender didn't unveil any major changes in strategy at that time, saying it would keep pursuing growth in Canada, look to expand fee-based revenue from its capital-markets and wealth-management businesses, and keep investing in technology, including artificial intelligence. More stories like this are available on
CTV News
29-05-2025
- Business
- CTV News
RBC's profit jumps on HSBC deal, wealth management boost
Royal Bank of Canada signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj Royal Bank of Canada reported a jump in second-quarter profit on Thursday, as the country's biggest bank benefited from the acquisition of HSBC's domestic business and strength in its wealth management business. The $13.5 billion acquisition of HSBC Canada, the largest deal in RBC's history, has tightened the bank's grip at home and positioned it for more growth and scale. The inclusion of HSBC's Canadian operations boosted RBC's net income by $258 million. 'We saw the strength of our diversified business model reflected across our largest segments in Q2, underpinned by our robust capital position, balance sheet strength and prudent, through-the-cycle approach to risk management,' said CEO Dave McKay. Canadian banks such as Bank of Nova Scotia and Bank of Montreal are also shoring up loan loss reserves as they prepare for the economic impact of U.S. tariffs and the global trade war. The changing economic outlook is expected to fan caution among consumers, leading to loan growth pressures and higher credit losses. RBC's provision for credit losses jumped to $1.42 billion in the reported quarter, from $920 million a year earlier. In its wealth management unit, profit jumped 11 per cent on the back of higher fee-based client assets. The bank posted adjusted profit of $4.53 billion, or $3.12 per share, in the three months ended April 30, compared with $4.2 billion, or $2.92 per share, a year earlier. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika Syamnath, Reuters
Hamilton Spectator
30-04-2025
- Business
- Hamilton Spectator
RBC scraps sustainable finance commitment
TORONTO - RBC says it is scrapping its sustainable finance commitment and holding back on other climate disclosures in part because of regulatory changes. The bank says in its latest sustainability report that, following an evolution in industry practices, it has concluded that its methodology 'may not have appropriately measured' some of its sustainable finance activities. It says its conclusion, as well as amendments to Canada's Competition Act that set expectations around environmental claims, led to it 'retiring' its commitment to facilitate $500 billion of sustainable finance by this year. The bank says it also will not be publicly disclosing its findings of how its high-carbon energy financing compares with its financing of low-carbon energy, something it committed to following shareholder pressure, nor how it's making progress on its commitment to provide $35 billion to low-carbon energy by 2030. RBC chief executive Dave McKay says in the report that he's proud of the bank's work to measure and monitor its progress, while refining its approach in a shifting external policy, legal and regulatory environment. climate finance director Richard Brooks says the scrubbing of data is a disappointing and concerning step backwards by Canada's biggest bank. He says in an email that the apparent backsliding by one of the world's largest fossil fuel funders shows voluntary measures aren't working and Prime Minister Mark Carney should accelerate regulatory efforts. RBC says in its report that it remains committed to sustainable finance, and to reporting on its climate activities in a clear and transparent manner in compliance with applicable laws. This report by The Canadian Press was first published April 29, 2025. Companies in this story: (TSX:RY)
Winnipeg Free Press
29-04-2025
- Business
- Winnipeg Free Press
RBC scraps sustainable finance commitment
TORONTO – RBC says it is scrapping its sustainable finance commitment and holding back on other climate disclosures in part because of regulatory changes. The bank says in its latest sustainability report that, following an evolution in industry practices, it has concluded that its methodology 'may not have appropriately measured' some of its sustainable finance activities. It says its conclusion, as well as amendments to Canada's Competition Act that set expectations around environmental claims, led to it 'retiring' its commitment to facilitate $500 billion of sustainable finance by this year. The bank says it also will not be publicly disclosing its findings of how its high-carbon energy financing compares with its financing of low-carbon energy, something it committed to following shareholder pressure, nor how it's making progress on its commitment to provide $35 billion to low-carbon energy by 2030. RBC chief executive Dave McKay says in the report that he's proud of the bank's work to measure and monitor its progress, while refining its approach in a shifting external policy, legal and regulatory environment. climate finance director Richard Brooks says the scrubbing of data is a disappointing and concerning step backwards by Canada's biggest bank. He says in an email that the apparent backsliding by one of the world's largest fossil fuel funders shows voluntary measures aren't working and Prime Minister Mark Carney should accelerate regulatory efforts. RBC says in its report that it remains committed to sustainable finance, and to reporting on its climate activities in a clear and transparent manner in compliance with applicable laws. During Elections Get campaign news, insight, analysis and commentary delivered to your inbox during Canada's 2025 election. This report by The Canadian Press was first published April 29, 2025. Companies in this story: (TSX:RY)
