Topic: How To Invest

The Successful Investor Hotline – Friday, August 24, 2018

Article Excerpt

ROYAL BANK OF CANADA, $103.64, Toronto symbol RY, reported better-than-expected earnings this week, due to strong results from its retail banking and wealth management businesses. The bank also raised its dividend. In its fiscal 2018 third quarter, ended July 31, 2018, Royal’s overall earnings rose 11.2%, to $3.11 billion from $2.80 billion a year earlier. But due to fewer shares outstanding, earnings per share gained 13.5%, to $2.10 from $1.85. If you exclude unusual items, Royal earned $2.14 a share in the latest quarter. On that basis, the latest earnings beat the consensus estimate of $2.11. Earnings from Royal’s retail banking (49% of the total) rose 7.9%, mainly due to higher interest rates. Strong demand for mortgages, credit cards and business loans also spurred earnings from retail banking. The bank’s capital markets business (22%) saw its earnings jump 14.2%, mainly due to higher debt and equity underwriting activity. The wealth management business (19%) reported 18.4% higher earnings as rising stock prices pushed up the…

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