The Successful Investor Hotline – Friday, February 28, 2014

Article Excerpt

ROYAL BANK OF CANADA, $72.16, Toronto symbol RY, earned $2.1 billion in the quarter ended January 31, 2014, up 2.2% from $2.05 billion a year earlier. Per-share earnings rose 3.0%, to $1.38 from $1.34, on fewer shares outstanding. Excluding a loss on the sale of its Jamaican banking operations, Royal earned $1.44 share in the latest quarter, matching the consensus forecast. Overall revenue rose 7.6%, to $8.5 billion from $7.6 billion. Revenue at Royal’s retail banking division (which supplied 40% of the total) rose 6.9%. That’s partly due to its February 2013 purchase of Ally Financial’s Canadian operations for $3.7 billion. Ally, which provides car loans through 1,600 dealerships, contributed $62 million to Royal’s revenue and $22 million to its earnings in the latest quarter. Higher demand for mortgages and consumer and business loans also contributed to the improved results. Revenue from Royal’s securities trading (22%) fell 5.1% on lower volume and business loan demand. Its corporate customers also issued fewer stocks…