Royal Bank of Canada Surpasses Q1 Expectations, Stock Dips

Published 23 hours agoRY

Royal Bank of Canada Surpasses Q1 Expectations, Stock Dips

Royal Bank of Canada (RBC) has announced impressive first-quarter 2025 financial results that beat analyst predictions. RBC's adjusted diluted earnings per share came in at C$3.62, outpacing the expected C$3.23. The bank also recorded a hefty net income of C$5.1 billion, reflecting a 29% increase compared to the same period last year, as reported by Newswire.ca. Revenue hit C$16.74 billion, well above the anticipated C$15.43 billion, Reuters reported.

However, it's not all smooth sailing as provisions for credit losses climbed by 29% to reach C$1.05 billion, primarily due to higher provisions in Commercial Banking, Wealth Management, and Personal Banking sectors, according to RTTNews. Despite this, RBC's capital position remains robust, with a Common Equity Tier 1 (CET1) ratio of 13.2%, which is comfortably above regulatory requirements. Additionally, the bank announced a quarterly dividend of C$1.48 per share, expected to be distributed to shareholders on May 23.

In an unexpected twist, RBC's strong financial performance did not immediately translate into gains for its stock price. Pre-market trading saw the bank's shares fall by 4.23%, closing at $114.43, down from a prior close of $119.48, as investing.com highlighted. This reflects the often complex relationship between reported financial results and market reactions. Nevertheless, RBC continues to exhibit a solid financial foundation and a commitment to its shareholders through consistent dividend payouts.

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