Topic: How To Invest

The Successful Investor Hotline – Friday, August 23, 2019

Article Excerpt

ROYAL BANK OF CANADA, $97.60, Toronto symbol RY, earned $3.25 billion in the quarter ended July 31, 2019. That’s up 4.9% from $3.10 billion a year earlier. Due to fewer shares outstanding, per-share earnings rose 5.6%, to $2.26 from $2.14. Those figure exclude unusual items. On that basis, the latest earnings missed the consensus estimate of $2.31. Earnings from retail banking (51% of the total) rose 10.2%, mainly due to higher loan volumes and interest rates. Earnings at the wealth management business (19%) gained 10.6% largely due to an 8.5% increase in assets under management. As well, earnings from the insurance division (6%) jumped 29.1% on higher returns from its investment portfolio. However, earnings from the bank’s capital markets business (20%) fell 6.4% due to a drop in corporate financing activity and advisory fees. In addition, earnings from investor and treasury services (4%) declined 23.9%. That’s partly due to lower gains on the sale of securities. In the quarter, revenue improved 4.7%, to $11.54…