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UPDATE 1-Royal Bank of Canada profit rises 6% on loan growth, higher trading

(Adds retail banking, capital markets income, background)

May 23 (Reuters) - Royal Bank of Canada reported a 6% rise in adjusted quarterly profit on Thursday, boosted by loan growth in its retail banking business and higher revenue in its trading business from improved market conditions.

Interest rate hikes in Canada and the United States, where the bank has a presence, have boosted Canadian lenders' net interest margins in recent quarters.

The Bank of Canada has raised key interest rates five times since July 2017, while the U.S. Federal Reserve has increased rates six times over the same period.

Net income at RBC's personal and commercial banking division, which provides loans and other financial products to businesses and individual consumers across Canada, rose 6% to C$1.55 billion ($1.15 billion) from a year earlier.

Total loans and acceptances rose 9% to C$621.6 billion, with growth across home, personal and business loans.

Net income from the lender's capital markets business, which includes trading, investment banking and advisory, jumped 16.7%.

Adjusted net income available to shareholders rose to C$3.16 billion, or C$2.23 per share, in the second quarter ended April 30, from C$2.98 billion, or C$2.10 per share, a year earlier. (

Analysts had expected Canada's biggest lender by market cap to report earnings per share of C$2.17, according to Refinitiv IBES data. It was not immediately clear if the numbers were comparable.

Smaller rival CIBC on Wednesday missed quarterly profit estimates due to sluggish loan growth and higher loan loss provisions. ($1 = 1.3474 Canadian dollars) (Reporting By Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila)